One of the genuinely good features of a prize bond is that your money is never locked in. There is no maturity date, no notice period and no penalty. You can walk into an authorised counter on any working day and convert the bond back into cash at its printed face value.
Where to encash
- National Savings Centres
- SBP-BSC field offices
- Authorised commercial bank branches — the same branches designated to sell bonds
Not every bank branch handles prize bonds. Call ahead, especially if you are encashing a large amount, so you do not make the trip twice.
What to take
- The original bond(s) — undamaged, with the number, denomination and issue date clearly readable.
- Your original CNIC. Even for bearer bonds, counters record identification for larger amounts.
- For premium (registered) bonds, your registration details and bank account information, since these are processed against the registered record.
What you receive
You receive the face value — the amount printed on the bond, nothing more and nothing less. There is no profit component, because a prize bond does not earn one. Encashment of the bond's face value is not a prize, so it is not treated the same way as prize money.
Small amounts are usually paid over the counter the same day. Larger amounts may be paid by cheque or transfer, and the branch may take a little longer to process the paperwork.
Before you encash — two checks worth two minutes
- Search the number against past draws. Prizes are claimable for six years from the draw date, and a surprising number of bonds are cashed in for face value while carrying an unclaimed prize. Use the advance search, which checks a number against the full archive at once.
- Check the upcoming draw date for that denomination on the schedule. If a draw is a few days away and you do not urgently need the money, waiting costs you nothing.
Common reasons a counter refuses a bond
- The bond number or issue date is unreadable because of damage, fading or water.
- The bond has been taped, laminated, glued or trimmed. Repairs interfere with authentication.
- The bond is one of the discontinued bearer denominations, which follow a separate procedure rather than ordinary encashment.
- Authentication concerns about the paper — in which case the branch will refer it for verification.
If your bond is damaged
Do not attempt any repair. Take it in as it is and ask the counter to examine it; if the essential features survive, it can usually still be processed. See our separate guide on lost and damaged bonds for what to do and what to avoid.
Encashing someone else's bond
A bearer bond is payable to the holder, so in principle you can encash a bond given to you. For larger amounts, be prepared for the branch to record your identification. A registered premium bond is different: it is processed against the registered owner's record, so it cannot simply be handed over and cashed by someone else.