Premium prize bonds look similar to ordinary bonds but they work in a fundamentally different way. They are registered: the government knows exactly who owns each bond number, and prize money moves electronically instead of over a counter. If you hold Rs. 25,000 or Rs. 40,000 premium bonds, this is what you need to understand.
Registered vs bearer — the one difference that matters
A bearer bond (Rs. 100 to Rs. 1,500) belongs to whoever is holding the paper. There is no name attached to it. A premium bond is tied to a CNIC at the moment of purchase. That single difference changes four things:
- Security: if a premium bond is lost or stolen, the finder cannot claim the prize — you can apply for a duplicate.
- Payment: prizes are credited to the registered bank account, not paid in cash at a counter.
- Paperwork: buying and selling requires a form, a CNIC and account details every time.
- Traceability: the purchase and any prize are part of your documented financial record — which is exactly what you want if you file returns.
What registration involves
You complete a purchase-cum-registration form at a National Savings Centre, an SBP-BSC field office or an authorised bank branch. You provide:
- Original CNIC plus a photocopy
- A bank account title and IBAN in your own name
- Contact details — mobile number and address
The counter records your details against every bond number issued to you and hands over the bonds. Keep the counterfoil or receipt: it is your proof of registration if a record ever needs to be corrected.
How the prize actually reaches you
When a premium bond wins, the prize is not handed to you in cash. The process is:
- The draw result is published by National Savings.
- You submit a claim form along with the original bond and your CNIC at the counter where the bond is presented.
- Withholding tax is deducted at the rate applicable to your filer status.
- The net amount is transferred to the bank account registered against the bond.
This is why keeping your registered bank account active matters. A closed or dormant account is the most common cause of a delayed premium prize payment. If you change banks, update the registration at a National Savings Centre rather than waiting until you win.
Draw frequency and prize structure
Premium bond draws are held quarterly, like bearer bonds, but the prize tables are much larger in absolute terms. The exact first, second and third prize amounts for each denomination are listed on the denomination pages of this site, along with the complete winning list for every draw held so far.
Converting old bearer bonds into premium bonds
When the government discontinued the large bearer denominations, holders were given options that included conversion into premium (registered) bonds, conversion into other National Savings instruments, or plain encashment. If you are still sitting on an old bearer Rs. 25,000 or Rs. 40,000 bond, do not assume the conversion window is still open — take it to a National Savings Centre and ask what is currently available for that specific bond, because the options and deadlines have changed several times.
Who premium bonds suit
Premium bonds are a better fit than bearer bonds if you are holding a large amount, if you want the holding documented for tax purposes, or if you are worried about theft and loss. They are a worse fit if you value anonymity or if you want to be able to hand the bond to someone else without paperwork. A bearer bond pays no profit while you hold it. A premium bond is different: it also carries a periodic profit at the rate notified by the Government, on top of the quarterly draws — one more reason large holders prefer the registered format. In both cases your capital comes back to you in full whenever you encash.
Before every draw
Registered or not, nobody contacts you automatically when your number comes up. Check each draw yourself, or save your premium bond numbers in a wallet account here so that every new list is checked against them the moment it is published.