Prize bond is a popular investment option in Pakistan. It is a type of security issued by the Government of Pakistan that can be used for saving and investment purposes. The bonds are issued in denominations of Rs. 100, Rs. 200, Rs. 750, Rs. 1500, Rs. 7500, Rs. 15000 and Rs. 40,000. The bonds are available at all branches of the State Bank of Pakistan and at other designated banks and branches.
Prize bond holders are required to pay a premium of Rs. 100 for each bond purchased. The bonds are sold at a discounted price and can be redeemed at face value at any time after one year of purchase. Prize bonds can be encashed either at the State Bank of Pakistan or at other designated branches.
Prize bonds are a secure and risk-free investment option. The returns on the bonds are guaranteed by the government and are free from market fluctuations. The bonds also provide an opportunity to win a cash prize. The prize money is based on a draw that is held every three months. The draw is conducted by the National Savings Directorate on the basis of a computerized system.
The prize bonds also provide an opportunity for tax-free investment. The interest earned is exempt.
