What Short Term Savings Certificates are
Short Term Savings Certificates (STSC) are a National Savings product issued through the Central Directorate of National Savings (CDNS). CDNS is the government body that sells savings certificates, prize bonds and savings accounts through National Savings Centres and its official channels.
STSC are designed for money you want to park for less than a year. They have shorter tenors than products such as Defence Savings Certificates or Special Savings Certificates. This makes them an alternative to a short bank term deposit or a short-dated T-bill.
For the wider family of products, see National Savings schemes.
Ready to try it on a real or demo account?
Partner link · trading carries a high risk of loss
Tenors and how profit is paid
STSC are offered in a small set of short tenors. The shortest is the one people search for as the "3 month savings certificate." Each tenor has its own profit rate. In general, you choose the tenor when you invest, and profit is paid when the certificate matures. There is no monthly payout.
The exact list of tenors, the minimum investment amount and the denominations can change. This page does not list them. Check the current terms on the official CDNS website or at a National Savings Centre before you invest, and note the date you checked.
| Feature | What to check with CDNS |
|---|---|
| Tenors on offer | Which short tenors are currently sold |
| Profit rate per tenor | The latest notified STSC profit rate and its effective date |
| Profit payment | Confirm that profit is paid on maturity |
| Minimum and maximum investment | Current limits and denominations |
| Early encashment | Whether it is allowed and how profit is reduced |
| Tax and deductions | Current withholding tax on profit and any Zakat rules |
| Who can invest | Eligibility for individuals, joint holders and others |
How the STSC profit rate is set
The government revises National Savings profit rates from time to time, and CDNS publishes the notified rates. STSC rates usually move together with other short-term government rates, such as T-bill yields. Those yields are driven by the State Bank of Pakistan (SBP) policy rate.
The latest SBP decision on record is this: SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). A change in the policy rate does not change STSC rates automatically or on the same day. It shows the direction short-term rates are moving. For background, see SBP rates and the economy.
When you look up a "short term saving certificate rate," check three things:
- the tenor the rate applies to
- the date from which it is effective
- whether the rate is applied to new investments only or also to certificates already held
Working out your return
Profit is paid only at maturity, so your return depends on the tenor, the rate on the day you invest, and the tax withheld from the profit. If you roll the money into a new certificate at each maturity, the new rate may be higher or lower than the old one.
Use the calculator below to test simple and compound cases, the effect of tax on profit, and the effective annual rate. Enter the current rate from CDNS yourself.
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 National Savings products in particular, you can also use the profit calculator.
Tax and early encashment
Profit on National Savings certificates is generally subject to withholding tax. The rates are set by the Federal Board of Revenue (FBR), and they can differ for filers and non-filers. Check the current FBR rates and confirm the deduction with CDNS. For related tax topics, see payments, tax and Islamic banking.
Cashing a certificate before maturity usually means a reduced profit or none at all. Read the current encashment rules before you invest money you might need soon.
STSC compared with other short-term options
- Bank term deposits. Rates and terms vary by bank. Some are eligible for deposit protection; see Deposit Protection (DPC).
- T-bills. These are bought through banks or brokers, and yields are set at auction.
- Money market funds. Returns are not fixed, and the unit value can change. See mutual funds.
These are savings products. Leveraged forex or CFD trading is a different activity with a high risk of fast losses, and it is not a substitute for saving.
Frequently asked questions
What is STSC in National Savings?
STSC stands for Short Term Savings Certificates. It is a CDNS certificate with tenors shorter than a year, and profit is paid at maturity.
What is the STSC profit rate today?
Rates are revised periodically. Check the latest notified rate for your chosen tenor on the official CDNS website or at a National Savings Centre, and note its effective date.
Is there a savings certificate for a few months only?
STSC is the CDNS product people usually mean by this. Confirm with CDNS which tenors are currently on sale.
Is STSC profit taxed?
Withholding tax generally applies to the profit. Check the current FBR rates, which can differ for filers and non-filers.
Can I cash STSC before maturity?
Check the current CDNS encashment rules. Early encashment normally reduces the profit you receive.
Does the SBP policy rate change my STSC rate?
Not directly. The government notifies National Savings rates separately, although they usually follow the direction of short-term rates.