The Central Directorate of National Savings (CDNS) has announced a change in the profit rates for Short Term Savings Certificates, effective February 2025, due to the recent decrease in inflation nationwide.

Under the new rates, the profit for three-month maturity certificates has been set at 11.24%, providing Rs2,810 on an investment of Rs100,000, down from the previous rate of 12.76%.

For six-month maturity certificates, the updated profit rate is 11.32%, yielding Rs5,660 for every Rs 100,000 invested, a reduction from the earlier rate of 12.74 percent, which offered Rs6,370.

The one-year maturity certificates now have a profit rate of 11.38%, resulting in a return of Rs11,380 on the same investment amount.

Taxation on profits from these certificates is determined by the investor’s tax status. Individuals included in the Active Taxpayer List (ATL) face a withholding tax rate of 15% on their earnings, while non-filers, who are not listed in the ATL, are taxed at a higher rate of 30%.

These rates apply consistently, regardless of the investment date or profit amount.

The Short-Term Savings Certificates (STSCs) were introduced in 2012, and designed to meet the short-term funding requirements of investors.

They offer maturity periods of three months, six months, and one year.

This program is available to both Pakistani citizens and Overseas Pakistanis, allowing investments starting from a minimum of Rs10,000, with no maximum limit. Investors can also use these certificates as collateral.

The government lowered profit rates on various national savings schemes and certificates by up to 1.22 percentage points on September 12, 2024.

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