Redeeming a bond, in the context of Pakistan Prize Bonds, means returning the bond through an authorized channel and receiving its face value. For ordinary bearer Prize Bonds, National Savings currently states that bonds can be encashed through SBP Banking Services Corporation offices, National Savings Centers and designated commercial-bank branches. Premium Prize Bonds follow a different process because they are registered in the investor’s name.
Encashing a Prize Bond should not be confused with claiming prize money. One returns your original investment at face value; the other is a separate procedure used when the bond number has won a draw.
- Ordinary bearer Prize Bonds can be redeemed at face value through SBP BSC offices, National Savings Centers and designated commercial-bank branches.
- National Savings states that ordinary Prize Bonds may be encashed at any time after purchase.
- The original Prize Bond must be presented for encashment.
- The current SBP purchase/encashment form also requires a copy of a valid CNIC.
- Premium Prize Bonds are registered and can only be encashed through the office of issue under the applicable procedure.
- Prize-money tax is different from redemption of the bond’s face value.
What Does Redeeming a Bond Mean?
For a Prize Bond holder, redemption or encashment means surrendering the bond and receiving the amount printed on it.
For example, if you hold an ordinary Rs.1,500 Prize Bond and decide that you no longer want to keep it, you can present it through an authorized encashment channel and receive its Rs.1,500 face value.
This is different from selling a bond to another person or claiming money because its number appeared in a draw.
National Savings currently lists these Prize Bond denominations:
| Type | Current denominations |
|---|---|
| Ordinary bearer Prize Bonds | Rs.100, Rs.200, Rs.750, Rs.1,500 |
| Premium Prize Bonds (Registered) | Rs.25,000, Rs.40,000 |
The Rs.25,000 and Rs.40,000 Premium Prize Bonds should not be confused with the old bearer Rs.25,000 and Rs.40,000 Prize Bonds that were withdrawn from circulation.
How to Redeem an Ordinary Prize Bond
For an ordinary bearer Prize Bond, the process is relatively simple.
1. Check the bond before surrendering it
Before encashing your bond, check its number against relevant draw results, particularly if you have held it through one or more draws.
A Prize Bond prize claim requires the original winning bond. For that reason, do not surrender a bond for routine encashment before checking whether it has won and confirming the correct prize-claim procedure.
You can use the PrizeBondList.pk Prize Bond checker to search previous results, while the corresponding official National Savings or SBP draw record should be used for final verification.
2. Take the original Prize Bond
National Savings states that the original bond is presented at the authorized counter and its face value is paid.
For transactions handled through SBP BSC, the published Application for Purchase/Encashment of National Prize Bonds asks for the customer’s name, CNIC number, telephone number, bond details and a copy of a valid CNIC.
3. Visit an authorized encashment location
Ordinary Prize Bonds can currently be purchased and encashed through:
- SBP Banking Services Corporation field offices
- National Savings Centers
- designated branches of commercial banks
Do not assume that every branch of every commercial bank provides Prize Bond services. National Savings specifically refers to designated branches.
4. Submit the bond for encashment
Present the original bond and complete any required transaction documentation.
Once accepted, you receive the bond’s face value. The surrendered bond no longer remains in your possession and therefore should not be treated as available for future draws.
Can a Prize Bond Be Redeemed at Any Time?
For ordinary National Prize Bonds currently in circulation, yes. The SBP and National Savings FAQs state that Prize Bonds can be encashed at any time after purchase.
This is separate from draw eligibility.
National Savings currently states that a Prize Bond must have been issued at least 60 days before the relevant draw to qualify for a prize. That rule concerns eligibility for the draw, not whether you can redeem the bond.
In simple terms
You do not need to wait for a draw before redeeming an ordinary Prize Bond.
But if you want the bond to remain eligible for future draws, you must continue holding it rather than encashing it.
Is Tax Deducted When Redeeming a Prize Bond?
Prize-money withholding tax should not be confused with redemption of the principal amount.
SBP’s Prize Bond FAQ explains that tax is deducted from prize money, not from the principal amount invested in the bond. When you encash an ordinary Prize Bond at face value, you are recovering the principal represented by that bond.
For example, redeeming a Rs.750 ordinary Prize Bond means receiving its Rs.750 face value under the normal encashment procedure.
If the same bond has won a prize, the prize-money claim is a separate transaction and applicable withholding tax rules apply to that prize.
For current filer and non-filer rates, see the PrizeBondList.pk Prize Bond tax page rather than applying an old rate from a previous draw or article.
Redeeming a Premium Prize Bond
Premium Prize Bonds require a different procedure.
The current Premium Prize Bond scheme includes registered Rs.25,000 and Rs.40,000 bonds. These bonds are recorded in the investor’s name and are linked with banking information.
SBP’s published Premium Prize Bond rules state that a Premium Prize Bond can be encashed only through its office of issue. The registered investor must submit the prescribed encashment application together with the required supporting documents.
For an individual investor, the official procedure includes:
- the original Premium Prize Bond signed on the reverse
- a legible copy of the valid CNIC, SNIC, NICOP or POC as applicable
- the prescribed Premium Prize Bond encashment application
The official terms also provide for the face value of the encashed Premium Prize Bond to be credited to the investor’s registered bank account. SBP states that no deduction is made from the bond’s face value upon encashment.
This registered procedure is one of the main differences between a Premium Prize Bond and an ordinary bearer Prize Bond.
Encashment vs Claiming Prize Money
These two transactions are often confused.
| Issue | Bond encashment | Prize-money claim |
|---|---|---|
| Purpose | Recover the bond’s face value | Receive a prize won in a draw |
| Is a winning number required? | No | Yes |
| Original bond required? | Yes | Yes for ordinary winning Prize Bonds |
| Prize tax involved? | Not on ordinary face-value principal | Withholding tax applies to prize money |
| Main time issue | Current bond may generally be encashed while valid | Prize must be claimed within the official claim period |
National Savings currently states that Prize Bond prize money may be claimed within six years from the date of the relevant draw. That six-year period applies to the prize claim, not ordinary redemption of a current bond.
If your bond has won, first read the how to claim Prize Bond money procedure before surrendering the bond.
What If the Prize Bond Is Damaged?
Do not treat a mutilated or badly defaced bond as an ordinary counter encashment.
SBP currently publishes a separate Application for Payment of Face Value of Mutilated/Defaced Prize Bonds (PB-1-A). Such cases are examined under the applicable Prize Bond refund rules rather than simply being exchanged over the counter like an intact bond.
Keep every available part of the damaged bond and contact SBP BSC for the current procedure before submitting it.
A lost bearer Prize Bond is a different matter again. See the PrizeBondList.pk lost Prize Bond page for the distinction between a lost bearer bond and a registered Premium Prize Bond.
What About Old Rs.7,500, Rs.15,000, Rs.25,000 and Rs.40,000 Bearer Bonds?
These denominations belong to the withdrawn bearer Prize Bond scheme.
The latest withdrawal extension currently listed by SBP set December 31, 2024 as the final date for encashment, replacement or conversion of the withdrawn Rs.7,500, Rs.15,000, Rs.25,000 and Rs.40,000 bearer Prize Bonds.
That date has already passed.
Do not confuse the withdrawn bearer Rs.25,000 and Rs.40,000 bonds with today’s registered Rs.25,000 and Rs.40,000 Premium Prize Bonds, which National Savings still lists as current products.
Anyone still holding a withdrawn bearer bond should check directly with SBP BSC or National Savings for any newer official notification rather than relying on an old article or unofficial dealer.
Before You Redeem Your Prize Bond
Redeeming a bond is straightforward when you know which type of Prize Bond you hold. Ordinary bearer Prize Bonds can currently be encashed at face value through authorized SBP BSC, National Savings and designated commercial-bank channels. Premium Prize Bonds are registered and follow the office-of-issue procedure.
Before surrendering any bond, check whether it has won, keep the original instrument safe and confirm that you are using an authorized channel. If the bond is damaged, withdrawn or registered as a Premium Prize Bond, follow the specific procedure for that category rather than treating it as an ordinary cash encashment.
PrizeBondList.pk is an independent information website and is not operated by National Savings, the State Bank of Pakistan or the Government of Pakistan. Official sources should be used for final confirmation of claims, forms and policy changes.
FAQs
Can I redeem a Prize Bond at any time?
National Savings and SBP currently state that ordinary Prize Bonds may be encashed at any time after purchase. You present the original bond through an authorized SBP BSC office, National Savings Center or designated commercial-bank branch and receive its face value. This rule is separate from the 60-day issue requirement used to determine eligibility for a Prize Bond draw.
Do I lose money when I encash an ordinary Prize Bond?
Under the normal redemption procedure, an ordinary Prize Bond is encashed at its face value. SBP also distinguishes the principal amount from prize money for tax purposes, explaining that prize-money tax is deducted from the prize rather than the principal. A Rs.1,500 ordinary Prize Bond therefore represents Rs.1,500 of face value when normally encashed.
Is redeeming a bond the same as claiming a Prize Bond prize?
No. Redeeming or encashing the bond means recovering its face value. Claiming prize money means receiving a prize after your bond number wins a draw. Prize claims require separate documentation and are subject to the official claim period and withholding-tax rules. Check whether your bond has won before surrendering the original instrument for encashment.
Where can I redeem a Premium Prize Bond?
SBP’s Premium Prize Bond procedure states that the registered bond can only be encashed through the office of issue. The investor submits the prescribed application, the original Premium Prize Bond signed on the reverse and the required identity document copy. The face value is credited according to the registered banking details.
Can a damaged Prize Bond be redeemed?
A damaged bond may require special handling. SBP publishes a separate PB-1-A application for payment of the face value of mutilated or defaced Prize Bonds. Rather than taking a severely damaged bond to an ordinary encashment counter and assuming it will be paid immediately, preserve the bond and follow the SBP BSC procedure for examination and settlement.
Can I still redeem an old Rs.7,500 or Rs.15,000 Prize Bond?
The latest SBP extension currently published for withdrawn bearer Rs.7,500, Rs.15,000, Rs.25,000 and Rs.40,000 Prize Bonds set December 31, 2024 as the final date for encashment, replacement or conversion. Because that date has passed, holders should check directly with SBP BSC or National Savings for any newer government notification before taking further action