Where Should You Keep Your Extra Savings in Pakistan?
For many years, National Savings (Qomi Bachat) was the main place Pakistani families saved their money. Parents and grandparents bought Behbood certificates, Special Savings Certificates, and paper Prize Bonds to earn a safe monthly income.
Today, Islamic mutual funds (like Al-Meezan, UBL Funds, and MCB Funds) let you open an account right from your phone, earn daily halal profit, withdraw money to your bank in one day, and pay lower taxes.
To pick the best option for your family, you only need to look at three things: how much profit you get after tax, how fast you can take your money out, and whether your money beats rising prices.
If you leave extra money sitting in a normal 0% bank account in Pakistan, rising prices will quietly eat away 15% to 20% of your purchasing power every year.
Understanding the Main National Savings Options
National Savings offers a few popular certificates depending on your age and needs:
- Behbood Savings Certificates: Only for senior citizens (60 years or older), widows, and disabled individuals. It pays the highest monthly profit and has 0% tax and no Zakat deduction.
- Regular Income Certificates: A 5-year scheme that pays profit every month into your bank account. Regular tax applies.
- Special Savings Certificates: A 3-year scheme where you get profit payouts every 6 months, with an extra bonus on the last payout.
- Sarwa Islamic Savings: An Islamic savings option designed for people who want Shariah-compliant government profits.
Why Prize Bonds Are Not Good for Building Wealth
Many people in Pakistan still keep paper Prize Bonds (Rs. 100, 200, 750, 1500, and Premium Bonds).
While they are popular, they have three big downsides for your savings:
- Zero Guaranteed Return: If your bond number is not drawn in the lucky draw, you earn Rs. 0. Over time, inflation makes that money worth less.
- Heavy Tax on Winnings: If you do win a prize, the government takes 15% tax if you are an active filer, and a massive 30% if you are a non-filer.
- Risk of Losing Paper Bonds: If paper bonds are stolen, wet, or lost, you cannot get your money back.
Simple Comparison: National Savings vs Mutual Funds vs Prize Bonds
Here is how these common savings options compare side by side in 2026:
| Option | Yearly Profit (Before Tax) | Tax for Filers | Tax for Non-Filers | How Fast Can You Withdraw? | Islamic / Halal Status |
|---|---|---|---|---|---|
| Behbood Savings | 13.5% – 15.5% yearly | 0% (No Tax) | 0% (No Tax) | 3-5 business days at branch | Government welfare scheme |
| Special Savings | 12.0% – 14.0% yearly | 15% on profit | 35% on profit | Fee if withdrawn before 1 year | Conventional |
| Islamic Money Market Funds | 14.5% – 17.5% yearly | 15% on profit | 30% - 35% on profit | 1 Business Day (Instant via app) | 100% Shariah Compliant |
| National Prize Bonds | 0% (Only if you win draw) | 15% on prize | 30% on prize | Same day at State Bank/bank | Disputed by scholars |
How Much Tax Do You Pay on Profits?
The tax rate on your bank and savings profit depends on whether you are on the FBR Active Taxpayer List (ATL):
If you are an active tax filer, you pay 15% tax on your profit. If you are a non-filer, the bank cuts 35% tax. For example, on Rs. 100,000 of yearly profit, a filer keeps Rs. 85,000, while a non-filer only gets Rs. 65,000.
How Kepto Helps You Track Your Savings
When you have money spread across bank accounts, certificates, and mutual funds, it is easy to lose track of your real net worth.
When you upload your bank statements to Kepto, it automatically spots profit payouts and investment deposits, keeping your daily living expenses separate from your wealth growth.
Simplify Your Budgeting & Money Management
Take the stress out of your finances. Kepto automatically organizes your everyday spending, helps you budget easily, and shows where you can save more each month — 100% free with no bank passwords required.
Frequently Asked Questions
Is profit from Behbood Savings Certificates taxed?
No. Behbood Savings Certificates for senior citizens and widows are completely free of withholding tax and have zero bank Zakat deductions.
How fast can I get my money back from an Islamic mutual fund?
You can withdraw anytime from your mutual fund mobile app. The money arrives in your normal Pakistani bank account within 1 business day (T+1).
How do I show National Savings in my FBR tax return?
In your Wealth Statement (Form 116), declare the original amount you paid for the certificates under 'Investments', and declare the yearly profit under your income section.