What a premium prize bond is
A premium prize bond is a government savings instrument issued under the National Savings programme, run by the Central Directorate of National Savings (CDNS). It differs from an ordinary prize bond in two ways:
- It is registered. The bond is issued in the buyer's name against their CNIC (national identity card). An ordinary prize bond is a bearer bond, which belongs to whoever holds the paper.
- It pays profit as well as prizes. The holder receives periodic profit on the face value and stays in the prize draws.
An ordinary bearer prize bond pays no profit. Its only return is the chance of a prize. For bearer bonds, draws and denominations, see Prize bonds.
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Denominations of the premium prize bond
Premium prize bonds come in fixed denominations set by the government. The highest denomination, often searched as "premium prize bond 40000", is the best-known one. It became prominent after the government withdrew the bearer bond of the same value and offered holders a registered premium version instead.
Denominations on offer can change. They can be added or withdrawn by government notification. Check the current list on the CDNS National Savings website or at a National Savings centre before you buy.
Premium prize bond profit
The profit is paid at intervals on the bond's face value. The government sets the rate and revises it from time to time. Profit on National Savings products generally moves with the wider interest rate environment, including the SBP policy rate. For background, see SBP rates and economy.
Points to keep in mind:
- The current profit rate is published by CDNS. Check it on the official site and note the date you checked it.
- Profit is usually credited to the bank account linked at registration. Confirm the payment method when you buy.
- Profit and prizes are taxed separately. See Prize bond tax and check current FBR withholding rates.
To compare returns with other schemes, use the Profit calculator.
Premium prize bond draw
Premium bonds have their own draws, separate from the bearer bond draws of the same value. Prizes are fixed amounts announced by CDNS. Your chance of winning in any draw is small, so treat the profit as the main return and any prize as uncertain.
- Draw dates: Draw schedule
- Results: Check prize bond results
Because the bond is registered, the record links prize claims to the named holder. Still check the official results lists yourself.
How registration and purchase work
The bond is registered in your name when you buy it. In general, the process looks like this:
- Visit a National Savings centre or an authorised bank branch or SBP office that handles premium bonds.
- Bring your original CNIC and your bank account details.
- Fill in the purchase form, and name a nominee if the form provides for one.
- Receive the bond or its record in your name.
Which offices handle sales, and which documents they need, can change. Confirm with CDNS or the branch before you go.
Encashment
Encashment means returning the bond for its face value. Registered bonds are encashed by the named holder, or by a nominee or legal heir under CDNS rules, with identity documents. Ask the issuing office about current procedure, any time limits and how profit due up to encashment is paid.
Premium bonds compared with other options
| Feature | Premium prize bond | Bearer prize bond | Bank term deposit |
|---|---|---|---|
| Ownership | Registered to CNIC | Holder of paper | Account holder |
| Profit | Yes, periodic | No | Yes |
| Prize draws | Yes | Yes | No |
| Issuer | Government (CDNS) | Government (CDNS) | Bank |
For other options, see National Savings schemes, Bank deposits and Savings and deposits.
Frequent questions
Is a premium prize bond the same as a registered prize bond?
Yes. "Registered prize bond" usually refers to the premium prize bond, which is issued in the holder's name.
Does a premium prize bond still enter draws?
Yes. It pays periodic profit and is also included in its own prize draws.
Where can I find the current profit rate?
On the CDNS National Savings website or at a National Savings centre. Rates are revised, so note the date you checked.
Are prizes and profit taxed?
Yes, withholding tax applies under FBR rules. See Prize bond tax for details.
Can someone else encash my bond?
Only a nominee or legal heir can, under CDNS procedure and with the required documents. Confirm the current rules with the issuing office.