Security Features

Prize bonds are getting more and more attractive as an investment option. They are a great way to save money and earn a good return through quaterly draws. However, with the increasing popularity of prize bonds, circulation of fake bonds has also increased. Treat your bonds like cash. This is why it is important to understand how to identify genuine prize bonds from fake ones.

Prize bonds are easily available from vendors who are unlicensed and are not authorized to buy or sell them. These vendors are not registered with the Central Directorate of National Savings (CDNS). People usually fall for them because of the winning amount they offer which is usually higher than the winning amount you may get if you choose to claim it from any authorized bank or State Bank's BSC branch. There you will be asked to pay tax on the winning amount which is 15% for the filer and 30% for the non filer or it will be deducted from the winning amount.

Eventhough State Bank of Pakistan have taken action against these vendors to curb tax evasion, they are still operating. They also offer serialized bonds which increases the chance of winning a prize are not available from any other source and for that they charge extra amount. For this reason, premium bonds like 25000 and 40000 bonds can only be bought from State Bank of Pakistan branches which then gets registered under buyer's name. If then you win any prize, the bank will deduct tax on the winning amount and deposit the rest into your bank account.

Key Safety Points

• Purchase only from authorized National Savings Centres, designated banks, or State Bank offices.
• Check that printing quality, serial numbering, and denomination match official specimens for that series.
• Keep the physical bond safe — digital photos or messages are not substitutes for claiming prizes.
• Verify draw announcements through official channels (National Savings / State Bank) when in doubt.
• Treat bonds like cash — lost or damaged instruments can complicate claims.

Risks of unauthorized vendors

Bonds from unofficial sources may be counterfeit, stolen, or not properly registered. You may be unable to claim prizes or encash face value. NSavings does not sell bonds and is not a government authority — always confirm with official issuers.