Federal govt announces new returns on defence savings certificates

ISLAMABAD: The federal government has some big news for those investing in Defence Savings Certificates.

The Central Directorate of National Savings has released the new rates of return on the scheme, which have come into effect from January 2026.

The Defence Savings Certificates scheme was launched in 1966. Its aim is to provide citizens and overseas Pakistanis with an opportunity to grow their savings safely over the long term. The scheme is available in certificates of various denominations, including Rs 500, Rs 1,000, Rs 5,000, Rs 10,000, Rs 50,000, Rs 1 lakh, Rs 5 lakh and Rs 1 million.

Investors can invest with a small or large amount according to their financial capacity. The scheme is open to adult Pakistani citizens, overseas Pakistanis, NICOP or POC holders. Minors can also invest with their guardian or jointly. Joint investment is also possible between two adults or an adult and a minor.

Investment facilities are available at National Savings Centers, authorized branches of Scheduled Banks and the State Bank of Pakistan.

Total Payable Amount  On Investment of Every Rs 100,000

First year: Rs 1,09,000

Second year: Rs 1,19,000

Third year: Rs 1,30,000

Fourth year: Rs 1,43,000

Fifth year: Rs 1,58,000

Sixth year: Rs 1,76,000

Seventh year: Rs 1,97,000

Eighth year: Rs 2,22,000

Ninth year: Rs 2,51,000

Tenth year: Rs 2,86,000

According to the State Bank, tax and Zakat will also be deducted on the profits of investors. The withholding tax for filers is 15 percent while for non-filers it is 35 percent.

Defense Savings Certificates are known as a safe and profitable option for long-term investment, and investors can take advantage of this opportunity.