How to Buy Defence Savings Certificates in Pakistan: Rs 100,000 Becomes Rs 305,000
Buy Defence Savings Certificates in Pakistan from Rs 500: value at each year, 15% or 30% tax, zakat wording, the ten year term and how to cash one early.
A Defence Savings Certificate turns Rs 100,000 into Rs 305,000 after ten years, at the 11.80% rate on the National Savings sheet from 1 October 2026. You can start with Rs 500. It pays nothing during the term. The whole gain arrives when you cash it, and tax is deducted from the profit.
Defence Savings Certificates (DSCs) are the long term, no income product among National Savings schemes. They suit someone saving for a daughter's wedding, a house deposit or an old-age cushion who does not need monthly money. This guide covers the denominations, the value at each year, the tax and how to cash one in early.
Understand how a Defence Savings Certificate works
You pay the face value today and receive a certificate. Profit builds up inside it for ten years and is paid when you cash it. Nothing is paid before the end of the first year, and the scheme does not pay monthly income like the Regular Income Certificate.
All Pakistani nationals and overseas Pakistanis can buy DSCs. An adult can buy alone, two adults can buy jointly, and an adult can buy for a minor. The minimum is Rs 500, and National Savings lists no maximum.
If you want a monthly payment instead of a lump sum, read the guide to buying Regular Income Certificates. DSCs are for people who can leave the money alone.
Read what Rs 100,000 is worth in each year
The National Savings sheet shows the value of a Rs 100,000 certificate at the end of each year. It rises slowly at first and faster in the later years, because the profit earns profit.
| Held for | Value of Rs 100,000 from 1 October 2026 |
|---|---|
| 1 year | Rs 110,000 |
| 3 years | Rs 134,000 |
| 5 years | Rs 166,000 |
| 8 years | Rs 236,000 |
| 10 years, at maturity | Rs 305,000 |
These are the figures from the rate sheet we read on 3 October 2026, set out in our story on National Savings rates from 1 October 2026. Before 1 October the same certificate paid Rs 300,000 at maturity, so the new rate helps buyers of new certificates. A certificate you already hold keeps the rate it was issued at.
The gain is before tax. On Rs 100,000, the gain at maturity is Rs 205,000. At 15% for a filer, tax on that would be Rs 30,750, by our arithmetic, but the scheme page does not say when in the term the tax is taken, so ask the counter how it works for your certificate.
Choose the denominations that fit your plan
DSCs come in Rs 500, Rs 1,000, Rs 5,000, Rs 10,000, Rs 50,000, Rs 100,000, Rs 500,000 and Rs 1,000,000. Buy several small ones if you may need cash in stages. A Rs 1,000,000 certificate can only be cashed whole.
The tax is 15% of the profit for people on the active taxpayer list and 30% for non-filers. That gap is big on a ten year gain. Filing a return before you buy is the cheapest decision in this whole guide, as the guide to the tax on savings profit shows.
On zakat, the Defence Savings page says it is deducted as the regulations require. That is different from the Regular Income Certificate, whose page says it is exempt. If you do not want zakat taken from your savings, the guide to the CZ-50 zakat exemption form explains the declaration.
Cash a certificate early if you must
The scheme page says a DSC can be cashed at par at any time after purchase. At par means you get your original money back. No profit is paid before one year is complete, so a certificate cashed in the first year returns only what you paid in.
| If you cash it | What you get on Rs 100,000, before tax |
|---|---|
| Before 1 year | Rs 100,000, no profit |
| After 1 year | Rs 110,000 |
| After 5 years | Rs 166,000 |
| After 10 years | Rs 305,000 |
Certificates bought after 15 November 2010 cannot be reinvested at maturity. At the end of ten years you collect the money and buy a new one at that day's rate. If you lose the paper, see the guide to a duplicate National Savings certificate. If the holder dies, the family follows the steps to claim a deceased person's National Savings.
Buy a certificate in six steps
You can buy at a National Savings Centre, an authorised scheduled bank branch or the State Bank of Pakistan. Cash payment gets the certificate immediately. A cheque, draft or pay order gets it after clearance.
- Decide the amount and the denominations.
- Get your CNIC, NICOP or Pakistan Origin Card, or the child's Form B.
- Go to a National Savings Centre or an authorised bank branch.
- Fill in the purchase form at the counter.
- Pay in cash for same day issue, or by cheque, draft or pay order.
- Store the certificate safely and write down its issue date.
Common questions about Defence Savings Certificates
What is the minimum investment in a Defence Savings Certificate?
Rs 500. The certificates come in eight sizes, from Rs 500 up to Rs 1,000,000, and no maximum is listed.
How long does a Defence Savings Certificate last?
Ten years. You can cash it earlier, but no profit is paid in the first year.
Does it pay monthly income?
No. The profit builds up and is paid when you cash the certificate. For monthly income, look at a Regular Income Certificate.
How much tax is deducted?
The scheme page lists 15% on profit for filers and 30% for non-filers. It also says zakat is deducted as the regulations require.
Will the 11.80% rate stay the same?
For new certificates it can change. The rate has moved several times in 2026. A certificate keeps the rate it was issued at, but check the sheet on the day you buy.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 8 October 2026. Eligibility, denominations, the ten year term, early encashment at par, the first year rule, purchase places, tax rates and the zakat wording come from the Defence Savings Certificates page on the National Savings website, which we read on 8 October 2026. The summary page on the same site dates its rates from 1 October 2026. The year by year values for a Rs 100,000 certificate come from the rate sheet we read on 3 October 2026. We did not visit a centre. The point at which tax is taken is not on the scheme page, so we have not stated it.
About the author
Public Services and Education Journalist
Fajr Riaz is a journalist and content writer at Pakistan Era, based in Lahore. She covers the questions people meet in everyday life in Pakistan: how a public service works, what a change in the rules means, and where to find a reliable answer.
