You can encash (sell back) standard prize bonds at any State Bank of Pakistan office or National Savings Centre at full face value with no fee. Simply bring your CNIC and the bonds. Commercial banks also accept them for account holders. For instant cash, private dealers buy bonds at a small discount. Premium bonds are redeemed through your linked bank account.
Prize bonds are one of the most liquid investments in Pakistan. Unlike real estate or fixed deposits, you can convert them back to cash within hours or days. However, the speed, cost, and process vary depending on where you encash. This guide covers every option so you can choose the one that best fits your situation.
Where to Encash Prize Bonds
State Bank of Pakistan (SBP BSC)
The official and most reliable option. SBP Banking Services Corporation offices are present in all major cities. They accept all denominations and process encashment at full face value with no commission or deduction.
National Savings Centres
CDNS offices accept prize bonds for encashment at face value. Processing may take slightly longer than SBP offices. Bring your original CNIC and the bonds you want to encash.
Commercial Banks
Major banks like HBL, UBL, NBP, and MCB can encash standard bearer bonds for their account holders. Some branches may charge a small service fee. Not all branches offer this service, so call ahead to confirm.
Open Market Dealers
Private dealers in bond markets (found in most major cities) buy bonds for immediate cash but at a discount below face value. This is the fastest option but costs you money. Only use established, reputable dealers and never hand over bonds before receiving payment.
Step by Step Encashment Process
Gather Your Documents
Bring your original CNIC (photocopy also needed), the prize bonds you want to encash, and your bank account details (IBAN) if you want the amount credited to your account instead of receiving cash.
Visit an SBP or National Savings Office
Go to your nearest SBP Banking Services Corporation office or National Savings Centre during working hours (Monday to Thursday 9 AM to 1 PM, Friday 9 AM to 12 PM). Arrive early as these offices can get busy.
Submit the Encashment Form
Fill out the encashment application form available free at the counter. Attach your CNIC photocopy and hand over the bonds. The official will verify your identity and inspect the bonds for authenticity.
Receive Your Payment
For amounts up to Rs. 50,000, you may receive cash on the spot. For larger amounts, the funds are transferred to your bank account within 1 to 5 working days. You will receive a receipt confirming the transaction.
Encashing Premium Bonds
Premium bonds (Rs. 25,000 and Rs. 40,000) work differently from standard bearer bonds. Since they are registered to your CNIC and linked to your bank account, you cannot sell them to another person or cash them at a dealer.
To encash Premium bonds, visit the SBP BSC office or National Savings Centre where the bond was originally registered. Submit an encashment request with your CNIC, and the face value will be credited directly to your linked bank account. Processing typically takes 3 to 7 working days.
For more details on the differences between bond types, read our registered vs bearer guide.
Before encashing any bond, always check it against past draw results first. Millions of rupees in prizes go unclaimed every year because holders encash or sell their bonds without checking. Use PakBonds to scan your bonds against every historical draw in seconds.
Important Considerations
- Standard bearer bonds have no maturity date. You can encash them at any time, whether they are one month old or ten years old.
- There is no tax on encashment at face value. Tax only applies to prize winnings, not to the return of your original investment.
- Damaged or defaced bonds may require additional verification. Keep your bonds in good condition and avoid writing on the front face.
- If you lose a bearer bond, there is no way to recover it since bearer bonds are not registered to any individual. Treat them like cash.
Scan your bonds before selling
Check every bond against all past draws in seconds. Do not leave money on the table.
Create Free Account