If you've been buying prize bonds in Pakistan, you've probably noticed that Rs. 25,000 and Rs. 40,000 bonds now only come as "Premium" registered instruments — you can no longer buy them as bearer bonds. This shift, which began with the discontinuation of Rs. 40,000 bearer bonds in 2019 and Rs. 25,000 in 2021, was designed to curb money laundering and bring transparency to the prize bond system. But what does "registered" actually mean, and should you convert your remaining bearer bonds? Let's explain everything.
What Is a Bearer Bond?
Ownership = Possession
A bearer bond belongs to whoever physically holds it. There's no name, no CNIC, and no digital record attached. If you lose it, it's gone — just like cash. If someone steals it, they can claim it as their own.
Still Active for Lower Denominations
Bearer bonds are still valid and actively traded for Rs. 100, 200, 750, and 1,500 denominations. You can still buy, sell, and claim prizes on these bonds without any CNIC registration.
What Is a Registered Bond?
Linked to Your CNIC
A registered bond is recorded in the State Bank of Pakistan's central database against your CNIC number. Only you can claim prizes, encash, or transfer it. If lost, it can be re-issued.
Automatic Prize Crediting
When you win on a registered bond, the prize amount can be automatically credited to your linked bank account. No need to visit a bank with the physical bond — the system handles it.
Required for Premium Bonds
The Premium Rs. 25,000 and Rs. 40,000 bonds are ONLY available as registered instruments. These bonds also pay a quarterly profit of ~5.6% p.a., which requires bank account linkage.
Side-by-Side Comparison
| Factor | Bearer | Registered |
|---|---|---|
| Ownership Record | Whoever holds the physical bond | Recorded in SBP/CDNS system against CNIC |
| Transfer | Hand it over — no paperwork | Formal transfer application required |
| Lost/Stolen Risk | Gone forever — no recovery possible | Can be re-issued with CNIC verification |
| Purchase Method | Bank counter or National Savings | Bank counter with CNIC (mandatory since 2019) |
| Prize Claim | Present physical bond + CNIC | Prize credited to linked bank account |
| Available Denominations | Rs. 100, 200, 750, 1500 | Rs. 100, 200, 750, 1500, 25K Premium, 40K Premium |
| Tax Treatment | WHT deducted at claim time | WHT deducted at source |
| Gift/Inheritance | Easy to gift (just hand it) | Requires formal transfer process |
How to Convert Bearer Bonds to Registered
If you hold old bearer bonds of discontinued denominations (Rs. 7,500, 15,000, 25,000, or 40,000), you should convert or encash them immediately. Here's the process:
Visit any commercial bank branch that deals with National Savings instruments.
Bring your original bearer bond(s), valid CNIC, and a bank account statement.
Fill out the conversion/replacement form provided by the bank.
Your new registered bond will be issued in 7–15 business days, linked to your CNIC.
For discontinued denominations, you can only encash at face value — not convert.
Discontinued bearer bonds (Rs. 7,500, 15,000, 25,000, 40,000) have limited encashment windows. After the government-specified deadline, they become worthless paper. If you have old high-value bearer bonds, act now — visit your bank or check the SBP website for current deadlines.
Should You Go Registered for Lower Denominations?
For Rs. 100, 200, 750, and 1,500 bonds, bearer is still an option — but registered is objectively safer. The only downside is that transferring registered bonds requires paperwork, while bearer bonds can be gifted by simply handing them over. If you hold a large portfolio of bonds, the security of registered bonds is worth the minor inconvenience. For tips on organizing your portfolio, see our How to Buy Bonds guide.
Track all your bonds in one place
Registered or bearer — add your bond numbers and we'll check every draw automatically.
Start Tracking Free