What Defence Savings Certificates are
Defence Savings Certificates (DSC) are a long-term savings product sold by the Central Directorate of National Savings (CDNS). CDNS is the government body that runs the National Savings schemes. When you buy a DSC, you lend money to the Government of Pakistan for a fixed tenor. Tenor means the length of time until the certificate matures.
DSC is one of several CDNS products. For the full list and how they compare, see National Savings schemes and the overview of savings and deposits.
This page gives no official figures. It does not state the DSC tenor, rates, minimum amounts, encashment charges or tax rates, because the government revises them. Check every figure on the CDNS official website or at a National Savings Centre before you invest. Note the date printed on the rate sheet you use.
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Tenor and the "DSC 10 year" question
Many people search for the DSC by its tenor, for example "dsc 10 year". DSC is a long-tenor certificate, and you get the full return only if you hold it until maturity.
Before you invest, confirm these points with CDNS:
- the current tenor of the certificate
- the denominations on offer
- whether the terms you read apply to new purchases only, or also to certificates you already hold
How the DSC profit rate works
Profit is paid at encashment
Some CDNS products pay profit every month or every quarter. DSC works differently. Its profit is usually cumulative: it builds up during the tenor, and you receive it together with your principal when you encash the certificate. Encash means cashing it in at a National Savings Centre or an authorised bank branch. This suits savers who do not need regular income.
If you need regular payouts, compare the DSC with Regular Income Certificates or Special Savings Certificates.
A profit schedule, not one flat rate
The "defence saving certificate rate" is normally published as a schedule. The schedule shows the value the certificate reaches at the end of each year it is held. In practice, the effective yearly return grows the longer you hold it. When you read the official table, check:
- the redemption value for each year of holding
- the effective annual yield at maturity
- the date the current schedule came into force
Why the rate changes
The government revises National Savings rates from time to time. These revisions usually follow the general level of interest rates in the economy. The SBP sets that level through its policy rate. The latest decision on record is: SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). More on this is on the SBP rates and economy page.
A rate change usually applies to new purchases. Ask CDNS whether a revision affects certificates you already hold.
Calculate your own return
Use the deposit calculator to model a DSC-style investment. Enter the yearly rate from the official schedule, choose compound interest (because profit builds up until maturity), and add the withholding tax rate that applies to you. The calculator then shows the effective annual rate after tax.
Fill in the empty fields to see the result.
Simple: P × r × t. Compound: interest is added to the balance each period; effective annual rate = (1 + r/n)^n − 1. Tax is withheld each time interest is credited.
For CDNS products with regular payouts, the National Savings profit calculator is the better fit.
Encashment before maturity
You can usually encash a DSC before maturity. Early encashment has a cost:
- You receive the value for the number of full years held, which is lower than the value at maturity.
- If you encash in the early period, CDNS may charge a service fee or pay no profit at all.
- Any profit you do receive may still have tax deducted.
The exact rules for early encashment are in the CDNS terms. Read them before you buy if you might need the money before the tenor ends.
Tax on DSC profit
Profit on National Savings certificates is generally subject to withholding tax. Withholding tax is deducted at source when the profit is paid. The rate depends on your tax status, for example whether you are on the active taxpayers list (a filer) or not. Zakat deduction may also apply unless you have filed the required exemption declaration.
Check the current withholding rates in the Federal Board of Revenue (FBR) tax rate card for the relevant tax year. Your National Savings Centre can tell you what will be deducted. For a wider view, see payments, tax and Islamic banking.
How DSC compares with other options
| Option | How profit is paid | Where to learn more |
|---|---|---|
| Defence Savings Certificates | Builds up, paid at encashment | This page |
| Special Savings Certificates | Paid at set intervals | Special Savings Certificates |
| Short Term Savings Certificates | Paid at maturity of a short tenor | Short Term Savings Certificates |
| Bank term deposits | Depends on the bank's product | Bank deposits |
| T-bills and PIBs | Discount or coupon | T-bills and PIBs |
DSC is backed by the government, so it carries a very different risk from leveraged trading. Leveraged CFD and forex trading can lose money fast. Funds sent to offshore trading platforms are also restricted: per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)). See law and regulators for details.
Frequent questions
What is the current DSC profit rate?
This page does not quote it, because it changes. Check the latest DSC rate schedule on the CDNS official website or at a National Savings Centre, and note the date it took effect.
Is DSC part of National Savings?
Yes. "DSC National Savings" refers to the Defence Savings Certificates issued by the Central Directorate of National Savings.
Do I get monthly profit on DSC?
Normally no. Profit builds up and is paid when you encash the certificate. Confirm the current terms with CDNS.
Can I cash a DSC early?
Usually yes, but you receive a lower value than at maturity, and the earliest period may carry a fee or no profit. Check the CDNS encashment rules.
Is tax deducted on DSC profit?
Generally yes, as withholding tax. The rate depends on your filer status. Check the FBR rate card for the current tax year.