Check Whether a National Savings or Bank Savings Account Pays More After Tax in Pakistan
National Savings and big banks both show 10% on savings in October 2026, but tax and payout timing change your profit. Compare Rs 1 million for filers.
Short answer: On Rs 1 million, a National Savings Savings Account and a bank savings account both advertise 10% a year in October 2026. After tax, our estimate leaves a filer about Rs 85,000 at National Savings and about Rs 81,600 to Rs 83,000 at a bank. The gap comes from the tax rate and how often profit is paid.
Both accounts show the same headline number. Ten percent looks like a tie. It is not, because two other things change what you keep: the tax taken from the profit and how often the profit is paid.
We read the National Savings Savings Account page, its FAQ and its rate page on savings.gov.pk on 14 October 2026. For banks, we use the rate sheets we read on 6 and 7 October for our comparison of savings profit at banks. The sums are our own arithmetic, shown below so you can repeat them.
Both accounts show 10% before tax
National Savings says its Savings Account stays at 10.00% a year from 1 October 2026. The big banks we checked pay 10% to individuals on balances up to Rs 10 million. The State Bank sets a minimum profit rate on savings deposits, which explains why banks sit at the same figure.
The bank figure is covered in savings account profit rates at banks in October 2026. The National Savings figure is in National Savings profit rates from 1 October 2026.
Tax rates differ between the two
The National Savings FAQ gives withholding tax of 15 percent for filers and 30 percent for non-filers on the Savings Account. Our bank comparison reports 20 percent for filers and 40 percent for non-filers on bank profit. The National Savings page is dated August 2025.
That is a five point gap for filers and ten for non-filers. Check that your own tax status is right, because it changes the result more than any other number here. Our guide to checking your filer status with one SMS shows how. The tax on bank profit is explained in tax on bank profit in Pakistan.
Because the National Savings tax page is older than the rate page, ask the centre for today's withholding rate before you move a large sum.
Payout timing changes what you earn
National Savings pays profit once a year, on 30 June, based on your lowest balance in each month. A bank may pay every six months or every month. More frequent payment lets profit earn profit, so the bank gets a small gain from compounding.
| Account | Profit paid | Net profit on Rs 1 million, filer | Net profit, non-filer |
|---|---|---|---|
| National Savings Savings Account | Once a year, 30 June | Rs 85,000 | Rs 70,000 |
| Bank, profit every 6 months | Twice a year | Rs 81,600 | Rs 60,900 |
| Bank, profit every month | Monthly | Rs 83,000 | Rs 61,700 |
These are estimates for one year, with the rate at 10% and no withdrawals. We took tax off each payment, then reinvested the rest. Real bank sheets differ, and balances move. Treat the table as a guide, not a quote.
Access and limits are not the same
A bank savings account lets you withdraw any day and use a card or app. National Savings allows three withdrawals a week and works through its centres and a bank slip. That limit is fine for an emergency fund but not for monthly bills.
National Savings opens with Rs 100 and has no maximum. Banks can drop the rate above Rs 10 million, to 9.5 percent at four banks, 8 percent at UBL and 7 percent at JS Bank in our sheets. So a very large balance suits National Savings better. See how to open a National Savings Savings Account for the form and papers.
- Write down your balance and your filer status.
- Ask the bank how often it pays profit and what it charges.
- Ask the National Savings Centre for today's withholding tax rate.
- Repeat the sum in the table with your own figures.
- Pick the account that keeps more after tax and gives the access you need.
Other National Savings schemes pay more
If you do not need weekly access, other schemes pay above 10%. From 1 October 2026, Behbood pays 12.72% and Regular Income Certificates 11.76%, though each has rules on who can buy and exit charges. See who qualifies for Behbood and the list of schemes.
Compare the result with inflation too. If prices rise faster than your net return, your money loses buying power, as shown in check if your savings beat inflation. Zakat can also apply, as listed in Zakat on National Savings.
Common questions
Is a National Savings Savings Account better than a bank account?
On our estimate it keeps slightly more for a filer on Rs 1 million, but it limits you to three withdrawals a week. Check the tax rate first.
How much profit does National Savings pay on Rs 1 million?
At 10.00% a year the profit is Rs 100,000 before tax. A 15 percent withholding tax would leave Rs 85,000.
When does National Savings pay Savings Account profit?
It credits profit once a year, on 30 June, based on the lowest balance in each month.
Why do banks and National Savings show the same rate?
Both show 10 percent for small balances. The State Bank sets a minimum profit rate for bank savings accounts, and National Savings has held its Savings Account at 10.00%.
Does the bank rate drop on large balances?
Yes. In our sheets, rates fell above Rs 10 million, to between 7% and 9.5% depending on the bank.
How we verified this
What we checked, where we read it, and what we could not confirm.
We read the Savings Account page, FAQ and rate page on savings.gov.pk on 14 October 2026. The FAQ and account page are dated 26 August 2025. The bank rates and the 20 and 40 percent tax figures come from our own comparison, based on bank rate sheets read on 6 and 7 October 2026. The profit sums are our arithmetic, not an official figure.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
