Fixed Deposit Rates in Pakistan, October 2026: 9 Banks Compared

The best 1-year fixed deposit rate we found at a big bank in October 2026 is 10.90%, at JS Bank, for deposits from Rs 100,000. HBL pays 10.60%, Allied Bank's Behtar Munafa pays 10.50% and Bank Alfalah pays 10.45% on Rs 1 million or more. MCB pays only 7.12%.

We read each bank's own profit rate sheet on 6 and 7 October 2026. The State Bank policy rate is 11.5%. National Savings pays 11.31% for 12 months and is taxed less than bank profit, which changes the answer for most savers.

A fixed deposit, also called a term deposit or TDR, locks your money for a set time at a set rate.

Fixed deposit rates at 9 banks for 1 month to 1 year

For one year, JS Bank, HBL, Allied Bank and Bank Alfalah all pay between 10.45% and 10.90% at maturity in October 2026. Bank AL Habib pays 10.00%. MCB pays about 7%, which is below its own savings account.

Rates are yearly, paid at maturity unless the row says otherwise. Meezan's figures are what it actually paid for September, because Islamic banks declare profit after the month ends. BankIslami's only term deposit open for new booking paid 8.50% for August, with monthly profit. We could not read Faysal Bank's rates, because its website blocked every request we made.

Monthly profit deposits for 1, 3 and 5 years

If you want income every month, Bank AL Habib's Mahana Munafa pays the most for one year, at 10.75%. For five years, JS Bank pays 9.94% and Bank Alfalah pays 9.75%. Longer is not better here: most banks pay less for 3 and 5 years than for one.

• Bank AL Habib Mahana Munafa: 10.75% for 1 year, 9.75% for 3 years, 9.50% for 5 years. Minimum Rs 25,000. Profit lands on the first working day of each month.
• JS Bank: 10.25% for 1 year, 9.90% for 3 years, 9.94% for 5 years.
• HBL Advantage Plus: 10.20% for 1 year, 8.85% for 3 years, 9.03% for 5 years. Minimum Rs 25,000.
• Bank Alfalah, Rs 1 million and up: 9.90%, 9.65% and 9.75%.
• Allied, UBL and MCB: 10.00%, 9.00% and 6.90% for 1 year, and 7.60%, 6.75% and 6.96% for 5 years.

Banks expect rates to drop, so they will not promise today's rate for five years. Locking in for five years at 6.75% is a poor deal when a 1-year deposit pays 9% or more. The State Bank's next policy meeting on 26 October could move all of these numbers.

A savings account at 10% can beat a fixed deposit

A State Bank rule called the Minimum Deposit Rate covers rupee savings accounts of individuals with a monthly average balance of up to Rs 10 million. MCB's own circular cites State Bank Circular Letter 15 of 6 July 2026 for it. On every conventional sheet we read, that floor shows up as 10% a year. So any fixed deposit below 10% loses to a plain savings account that you can withdraw from any day.

We saw the 10% figure on the MCB, HBL, Bank Alfalah and JS Bank sheets. Above Rs 10 million, it drops to about 9% to 9.5%. MCB pays 10% on its own PLS savings account, against 7.12% on its 1-year deposit. Islamic savings accounts are different. Meezan paid 6.63% on its savings account for September, and BankIslami paid 6.78% for August.

Tax on fixed deposit profit is 20% for filers, 40% for non-filers

Banks deduct 20% tax from deposit profit if you are on the FBR Active Taxpayers List, and 40% if you are not. National Savings profit is taxed at 15% and 30%. We read both rates in the Income Tax Ordinance.

Division IA of Part III of the First Schedule, rewritten by the Finance Act 2025, sets 20% on bank deposit profit and 15% for other cases, which includes National Savings. The Tenth Schedule doubles the rate for anyone not on the Active Taxpayers List. Behbood and Pensioners' Benefit profit is not taxed at all, says CDNS. Section 151 is the provision that makes the bank deduct this tax on bank profit and savings before it pays you.

Rs 1,000,000 for one year: what you keep after tax

A filer who puts Rs 1 million in the National Savings 12-month Short Term certificate keeps about Rs 96,135 after tax. The best bank deposit, JS Bank at 10.90%, leaves Rs 87,200. MCB's 7.12% leaves only Rs 56,960.

1. National Savings Short Term, 12 months, 11.31%: Rs 113,100 profit, Rs 16,965 tax, Rs 96,135 kept.
2. JS Bank, 1 year at maturity, 10.90%: Rs 109,000 profit, Rs 21,800 tax, Rs 87,200 kept.
3. HBL Advantage, 1 year at maturity, 10.60%: Rs 106,000 profit, Rs 21,200 tax, Rs 84,800 kept.
4. Bank Alfalah, 1 year, 10.45%: Rs 104,500 profit, Rs 20,900 tax, Rs 83,600 kept.
5. Savings account at 10%: about Rs 100,000 profit, Rs 20,000 tax, Rs 80,000 kept.
6. MCB, 1 year, 7.12%: Rs 71,200 profit, Rs 14,240 tax, Rs 56,960 kept.

A non-filer keeps Rs 65,400 at JS Bank and Rs 79,170 in National Savings.

So for a filer, National Savings wins by about Rs 9,000 a year on Rs 1 million. The National Savings rates from 1 October are higher than any bank's 1-year rate we read. A bank deposit still has one advantage: deposits of up to Rs 1 million per person per bank are covered by deposit protection, and you can book it in a few minutes in your banking app.

Islamic and conventional deposits work differently

A conventional bank tells you the rate before you deposit. An Islamic bank tells you a profit share, and the actual rate is declared after each month. Meezan's 1-year certificate paid 9.56% for September; next month it could be higher or lower.

Islamic term deposits use a Mudarabah contract: the bank invests your money and shares the profit, 70% to the customer and 30% to the bank on BankIslami's sheet. Meezan has stopped new bookings in its 2, 3 and 5 year certificates. Its 5.5-year Aamdan Certificate paid 9.18% for September, or 10.12% for senior citizens.

For a Shariah-compliant deposit, compare several months of declared rates, not one.

How to book a fixed deposit and what to check

You can book a term deposit in most banks' mobile apps from your own account, or at a branch with your CNIC. Check three things first.

• The rate on the day you book. The rate is locked when you book, not when you read the sheet.
• Early encashment. HBL pays the lowest of several rates, one of them the last completed tenure's rate minus 1%. Bank AL Habib pays the last completed tenure's rate. Read your bank's rule.
• Your filer status. Check you are on the Active Taxpayers List before profit is paid, not after.

Common questions

Which bank gives the highest fixed deposit rate in Pakistan in October 2026?

Among the banks we read, JS Bank pays the most for one year at 10.90%, for deposits from Rs 100,000 to Rs 4.99 million.

Is a fixed deposit better than National Savings?

For a filer, usually not. National Savings pays 11.31% for 12 months and is taxed at 15%, against 20% on bank profit.

How much tax is deducted on fixed deposit profit?

20% if you are on the Active Taxpayers List and 40% if you are not, deducted by the bank when profit is paid.

What is the minimum amount for a fixed deposit?

Rs 25,000 at HBL and Bank AL Habib, Rs 50,000 at Meezan and Rs 100,000 at MCB and JS Bank.

Can I break a fixed deposit early?

Yes, but you get a lower profit rate. Each bank sets its own rule, and some pay the savings rate minus 1%.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked on 7 October 2026. Bank rates come from each bank's own sheet: JS Bank rack rates of 2 October 2026; HBL indicative rates for 1 October to 31 December 2026; Allied Bank projected rates for October 2026; UBL projected rate sheet for October 2026; Bank Alfalah deposit rate sheet of 21 August 2026, the latest on its rate page; MCB circular FCG-BS-2026-38 of 17 August 2026; the Bank AL Habib term deposit page, with rates effective 11 August 2026; Meezan Bank profit rates for September 2026, updated 2 October; and BankIslami's TDR pool rates for August 2026. National Savings rates are on the CDNS latest profit rates page. Tax rates are in the Income Tax Ordinance, amended up to 30 June 2026. Rates on bank sheets are indicative and change often.