Premium Bonds Guide
How to Purchase Rs. 40,000 Premium Prize Bond
Your Complete Guide to Investing in Pakistan’s Premium Savings Instrument
The Rs. 40,000 Premium Prize Bond represents the pinnacle of National Savings’ investment products, offering substantial returns and life-changing prizes. As Pakistan’s highest-denomination prize bond, it attracts sophisticated investors seeking both security and significant earning potential.
In this comprehensive guide, we’ll walk you through every step of purchasing a premium bond, explain tax implications, reveal winning strategies, and provide exclusive resources to maximize your investment returns.
Why Invest in Rs. 40,000 Premium Prize Bonds?
Higher Winning Amounts
Grand prize of Rs. 80,000,000 with better odds than smaller denominations
Tax Advantages
Withholding tax is only 15% vs. regular income tax rates
Inflation Hedge
Protects capital against rupee devaluation
Secure Investment
Government-backed with zero default risk
Documents Required
- 2 copies of the national identity card
- Account maintenance certificate containing your 24-Digits IBAN (PK00 ABCD 0000 0000 0000 0000)
- Copy of the national identity card of your nominee and contact number
- Premium Prize Bond purchasing form
Premium Prize Bonds Specifications
- Non-bearing instrument
- Registered in the name of an individual or company
- Largest denomination in Prize Bonds
- Largest prize money
- Pledgeable asset
Step-by-Step Purchase Process
Eligibility Check
Must be 18+ with a valid CNIC. Both residents and overseas Pakistanis can purchase. Organizations can buy through registered documents.
Prepare Documents
Original CNIC (or passport for overseas Pakistanis), photocopy, and two passport-size photographs. For companies: registration documents.
Choose Purchase Method
Decide between National Savings Centers, authorized banks (HBL, UBL, MCB), or designated post offices. The State Bank of Pakistan is an authentic place to purchase premium prize bonds.
Complete Application
Fill out Form “A” with personal details, nominee information, and bond quantity. Double-check CNIC numbers.
Make Payment
Pay via cash, bank draft, cheque, or pay order. The newly introduced method of payment is RAAST. Credit cards are not accepted.
Receive Bond Certificate
Obtain a physical bond certificate with a unique 6-digit number that follows the alphabet. Verify all details immediately.
Authorized Purchase Locations
| City | National Savings Center | Authorized Banks |
|---|---|---|
| Karachi | Main Branch, I.I. Chundrigar Road | HBL, UBL, MCB, ABL |
| Lahore | Savings Center, Mall Road | HBL, UBL, MCB, Alfalah |
| Islamabad | Central Directorate, Blue Area | HBL, UBL, MCB, SBP |
| Rawalpindi | Cantonment Branch, Bank Road | HBL, UBL, MCB, NBP |
| Other Cities | All Divisional Headquarters | Designated Branches Only |
Note: Call ahead to confirm availability at (021) 111-111-456 or check National Savings Center Locator
Tax Implications & Prize Structure
Understanding tax treatment is crucial for maximizing returns on your premium bond investment.
Prize Structure—Rs. 40,000 Premium Prize Bond
| Prize | No. of Winners | Amount (PKR) |
|---|---|---|
| 1st Prize | 1 | Rs. 80,000,000 |
| 2nd Prize | 3 | Rs. 30,000,000 |
| 3rd Prize | 660 | Rs. 500,000 |
Withholding Tax Rates
| Prize Amount | Tax Rate | Effective Deduction | Net Amount |
|---|---|---|---|
| 500,000 | 15% | 75,000 | 425,000 |
| 30,000,000 | 15% | 4,500,000 | 25,500,000 |
| 80,000,000 | 15% | 12,000,000 | 68,000,000 |
Example Calculation (First Prize Winner)
Grand Prize: Rs. 80,000,000
Withholding Tax (15%): Rs. 12,000,000
Net Received: Rs. 68,000,000
Premium Bond vs Other Investments
| Feature | Rs. 40,000 Bond | Stock Market | Real Estate | Fixed Deposits |
|---|---|---|---|---|
| Minimum Investment | Rs. 40,000 | Rs. 5,000+ | Rs. 1,000,000+ | Rs. 25,000 |
| Return Potential | Profit + Prize | Variable (High risk) | 10-15% annually | 12-14% annually |
| Liquidity | Immediate | 1-2 days | Months | Lock-in period |
| Security | Government-backed | Market risk | Market risk | Bank guarantee |
| Tax Efficiency | 15% flat | 15-30% | Varies | As per the income slab |
Premium Prize Bond Draw Schedule 2025
| Draw No. | Date | City | Prize Money |
|---|---|---|---|
| 81 | February 12, 2025 | Karachi | Rs. 80,000,000 |
| 82 | June 10, 2025 | Lahore | Rs. 80,000,000 |
| 83 | September 10, 2025 | Islamabad | Rs. 80,000,000 |
| 84 | December 10, 2025 | Quetta | Rs. 80,000,000 |
Frequently Asked Questions
Can non-resident Pakistanis buy premium bonds?
Yes, overseas Pakistanis can purchase using their passport and foreign addresses. Prizes are paid in PKR through wire transfer.
What’s the minimum holding period?
No minimum period. You can redeem immediately after purchase at face value, though you’ll forfeit upcoming draws.
How are prizes claimed?
Present the original bond certificate and CNIC at any National Savings Center. For prizes above Rs. 500,000, a bank account is mandatory.
Can I purchase bonds as gifts?
Yes, but the recipient’s CNIC details must be provided at purchase. Gift deeds are required for transfers.
Investment Strategy Tips
- Diversify purchase dates—spread investments across multiple draws
- Register nominee details—protect your investment for heirs
- Maintain digital records—scan certificates and store securely
- Check results systematically—use online bond checkers
- Reinvest winnings—compound your returns with additional bonds
Conclusion
The Rs. 40,000 Premium Prize Bond offers a unique combination of security, excitement, and wealth generation potential unmatched by other investment vehicles. While the entry point is higher than regular bonds, the proportional returns and prize structure make it particularly attractive for high-net-worth individuals and strategic investors.
Remember to purchase only through authorized channels, maintain meticulous records of your bond certificates, and regularly check draw results. With quarterly opportunities to win up to Rs. 80 million, your single investment could transform your financial future.
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