Investing in National Prize Bonds is a popular, government-backed savings option for millions of Pakistanis, but many don’t know how to buy prize bond in Pakistan.
For individuals new to the scheme and looking to understand how to buy prize bonds in Pakistan, this guide explains the entire process – from purchase to potential prize claim – while highlighting key rules and regulations.
Types of Prize Bonds Available in Pakistan
In Pakistan, there are two main types of prize bonds, officially issued and regulated by the Government of Pakistan through the Central Directorate of National Savings (CDNS):
1. National Prize Bonds (Bearer Bonds)
These are the traditional and most common prize bonds.
Key Features
- Bearer instruments (ownership depends on physical possession)
- Not registered in the buyer’s name
- Can be transferred simply by handing over the bond
- Prize must be claimed manually
Current Active Denominations
- Rs. 100
- Rs. 200
- Rs. 750
- Rs. 1,500
(Some older denominations like Rs. 7,500, Rs. 15,000, Rs. 25,000, and Rs. 40,000 have been discontinued.)
2. Premium Prize Bonds (Registered Bonds)
These are a more secure and modern version of prize bonds.
Key Features
- Registered in the investor’s name
- Safer against loss or theft
- Offer both regular profit and prize draws
- Profit and prize money are credited automatically to a bank account
Current Active Denominations
- Rs 25,000
- Rs 40,000
Authorized Places to Buy National Prize Bonds (Bearer Bonds)
Prize bonds can legally be purchased only from authorized locations. These include designated branches of major commercial banks, all National Savings Centers, and the 16 field offices of the State Bank of Pakistan Banking Services Corporation (SBP-BSC).
Purchasing bonds from unauthorized brokers in the open market should always be avoided to prevent fraud or invalid claims.
Procedure to buy National Prize Bonds (Bearer Bonds) in Pakistan
To purchase a National Prize Bonds, an individual must visit an authorized outlet with an original, valid CNIC and complete a simple application form. The bond is issued immediately. Specific bond numbers cannot be chosen, as numbers are allocated randomly.
Eligibility and Purchase Requirements for Premium Prize Bonds (Registered Bonds)
Registration is mandatory for purchasing Premium Prize Bonds. Investors must visit an authorized Office of Issue, which includes:
- SBP-BSC field offices
- Designated branches of 19 major conventional banks
The following documents are required at the time of purchase:
- Original, valid CNIC
- Account Maintenance Certificate from a conventional bank
- Maintaining a conventional bank account is a mandatory requirement for participation in this scheme.
What is Shut Period of Prize Bond?
After purchase, the bond must be held for a minimum of two months before it becomes eligible for inclusion in a prize draw.
This waiting time is known as the “Shut Period.” Since prize bonds are bearer instruments, ownership belongs to the person in physical possession of the bond. Therefore, bonds should be kept in a secure location.
National Prize Bond Draw Schedule and Result
Tax deductions are applied automatically before funds are credited to the bank account.
Each prize bond denomination has four draws per year. Official winning lists are published on the Central Directorate of National Savings (CDNS) website one day after each draw. Bondholders have six years from the draw date to claim any prize.
Common Reasons for Claim Rejection
Prize claims may be rejected due to the following reasons:
Mismatched or inconsistent signatures
Incorrect or invalid IBAN details
Submission of claims during the shut period
Printing errors or “mismatched” bonds (eligible only for face value encashment, not prizes)
How to Cash or Transfer Bonds in Pakistan
Encashment and transfer of Premium Prize Bonds must be conducted through the Office of Issue:
- Bonds can be encashed at any time for full face value
- Encashment proceeds are transferred directly to the investor’s bank account
- Transfer of bonds requires the physical presence of both parties along with their original CNICs
- Replacement of Lost Bonds and Succession Procedure
Premium Prize Bonds offer enhanced security features:
Lost bonds can be replaced by filing an FIR and submitting an application at the Office of Issue.
In the event of the investor’s death, the principal amount, accrued profit, and prize money are paid to legal heirs upon submission of a valid succession certificate.
Prize Winning and Claim Eligibility
If a prize bond number is declared a winner, the prize amount can be claimed through the following channels:
- Prizes up to Rs 500,000: Claimable at SBP-BSC offices or authorized commercial banks
- Prizes above Rs 500,000: Claimable only at SBP-BSC offices
Documents Required for Prize Claim
To claim prize money, the claimant must submit:
- Original winning prize bond
- Signed photocopy of the bond
- Duly filled and signed claim form (available free of cost)
- Copy of valid CNIC
- IBAN of a conventional bank account
NOTE: Islamic bank accounts are not accepted for prize disbursement.
Tax Deduction on Prize Money
The post-purchase process is designed for convenience. There is no need to manually claim either profit or prize money. Both are automatically credited to the investor’s registered bank account.
- Two months for prize draw eligibility
- Six months for profit entitlement
- Taxation on Earnings
Withholding tax is deducted at source on both profit and prize money:
- 15% for tax filers
- 30% for non-filers
