Savings Account Profit Rates in Pakistan, October 2026: 10% at Most Big Banks

Every big conventional bank we checked pays 10% a year on an ordinary savings account in October 2026, if you are an individual and your monthly average balance is up to Rs 10 million. HBL, Allied Bank, UBL, Bank Alfalah, JS Bank, Bank AL Habib and MCB all show 10% on their own rate sheets. Islamic banks pay far less.

So the winner is not the highest rate. It is the account that pays more often, charges no fee and does not cut your rate once you cross Rs 10 million. Tax then takes 20% of the profit if you are on the FBR Active Taxpayers List and 40% if you are not.

We read each rate sheet on 6 and 7 October 2026. A savings account is a bank account that pays you profit on the money you keep in it, and lets you withdraw any day. For locked money at a fixed rate, see our fixed deposit rates at nine banks.

Savings account profit rates at 7 banks are all 10% up to Rs 10 million

HBL, Allied Bank, UBL, Bank Alfalah, JS Bank, Bank AL Habib and MCB pay 10% a year to individuals on balances up to Rs 10 million. Above that line, rates split: 9.5% at four banks, 8% at UBL and 7% at JS Bank.

Rates are yearly and indicative. "Not on sheet" means the sheet we read does not say, so check the bank's account page before you open.

The 10% comes from a State Bank rule that only covers individuals up to Rs 10 million

The State Bank sets a minimum profit rate on savings deposits. Since 1 August 2026 it applies only to individuals with a monthly average balance of up to Rs 10 million. Companies, public bodies and larger balances now get whatever the bank offers.

We read BPRD Circular Letter No. 15 of 2026, dated 6 July 2026, on sbp.org.pk. It limits the minimum profit rule to individuals with a monthly average balance of up to PKR 10 million, effective 1 August 2026. It also launches InvestPak, the State Bank's platform for buying government securities directly. The circular does not print the rate. The 10% figure is what we found on the rate sheets of HBL, Bank Alfalah, JS Bank and Bank AL Habib, and on MCB's circular. The State Bank's own policy rate is 11.5%, held on 14 September 2026. Profit rates on savings sit below it.

Cross Rs 10 million and the bank no longer has to pay the floor. HBL, Allied, Alfalah and Bank AL Habib drop only to 9.5%. UBL falls to 8% and JS Bank to 7%. That is a real cost, and a reason to split a large balance across banks.

Profit payout frequency changes what you earn

An account that pays every month earns profit on profit sooner than one that pays every six months. HBL states its own effective rates: 10.25% a year for its six-monthly PLS account and 10.47% for its monthly accounts, both on a 10% headline rate.

1. Rs 1,000,000 in HBL PLS Savings, paid every 6 months: about Rs 102,500 a year before tax.
2. Rs 1,000,000 in HBL Mahana Amdan, paid monthly: about Rs 104,700 a year before tax.
3. The gap is about Rs 2,200 a year before tax, for the same 10% headline rate.

The monthly account has a price. HBL Mahana Amdan asks for a Rs 40,000 monthly average balance, or it deducts service charges. Below that, the extra Rs 2,200 can disappear. HBL PLS Savings has no minimum balance.

Bank Alfalah's Pehchaan account is one to look at if your balance is above Rs 50,000. It pays 10.05% below Rs 50,000, 10.15% from Rs 50,000 and 10.30% from Rs 500,000 up to Rs 10 million, all monthly. Its SnaPack and Teenager accounts pay 10.25% up to Rs 10 million. Those were the only conventional rates above 10% we found for individuals.

Islamic savings accounts pay about 6.6% to 6.8%, well below 10%

Islamic banks do not set a fixed rate. They share the profit of a pool and declare the rate after the month ends. Meezan Bank paid 6.63% on its savings account for September 2026. BankIslami's declared pool rate was 6.78% for August.

That is about 3.3 points below the conventional banks on the same money. On Rs 1 million, the difference is roughly Rs 33,000 a year before tax.

Compare three or four months of declared rates, not one. We carried these two figures from the sheets we read for our fixed deposit page, because Meezan's sheet blocked us this morning.

Tax on savings profit is 20% for filers and 40% for non-filers

The bank deducts tax before it pays you. We read the rate in the Income Tax Ordinance, amended to 30 June 2026: 20% of bank profit, doubled for anyone not on the Active Taxpayers List. Section 151 is the provision that makes the bank deduct it.

The sums use simple yearly profit, so a monthly account will pay a little more. The bank deducts at each payout. Our tax on bank profit and savings page sets out how the section works. Check your name on the Active Taxpayers List before profit is paid, since a non-filer pays double.

Then compare with prices. The Pakistan Bureau of Statistics reported inflation at 10.3% in September 2026. A filer keeps 8% after tax on a 10% account. So savings profit does not beat inflation today, and it still beats a current account paying nothing.

Savings account or fixed deposit: when each one wins

A savings account at 10% pays you less than the best fixed deposit at 10.90%, but you can withdraw any day. A fixed deposit beats 10% only when you lock the money for a year. At several banks it pays less than the savings account.

MCB's 1-year deposit pays 7.12% while its savings account pays 10%, so a locked deposit can lose to a plain savings account. The gap at the top is 0.90 points, JS Bank's 10.90% against 10%. On Rs 1 million that is Rs 9,000 a year before tax.

Another option beats both for a filer. The National Savings rates from 1 October are higher than any bank's rate we read, and the tax is 15% instead of 20%. Bank deposits of up to Rs 1 million per person per bank are covered by deposit protection, which is the one clear advantage of a bank.

Common questions

Which bank gives the highest savings account profit rate in Pakistan in October 2026?

Bank Alfalah's Pehchaan Savings Account pays 10.05% to 10.30% a year to individuals, monthly, and its SnaPack account pays 10.25%. Most other big banks pay 10.00%.

What is the State Bank's minimum savings rate?

Banks must pay a minimum profit rate on savings of individuals with a monthly average balance up to Rs 10 million. It has applied only to them since 1 August 2026. Bank sheets show 10% for it.

How much tax is deducted on savings account profit?

20% if you are on the Active Taxpayers List and 40% if you are not. The bank deducts it when profit is paid.

Do Islamic savings accounts pay less than conventional ones?

Yes. Meezan paid 6.63% for September and BankIslami declared 6.78% for August, against 10% at conventional banks.

Is a savings account better than a fixed deposit?

For small balances you may need soon, yes. A fixed deposit wins only if you lock the money and the bank pays more than 10% for that term, like JS Bank's 10.90% for one year.

How we verified this

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

Last checked on 7 October 2026. Rates are from each bank's own sheet: 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; JS Bank profit payout rates from 1 October 2026; Bank AL Habib's savings account page; and the MCB circular of 17 August 2026. Meezan's and BankIslami's figures are from their September and August declared-rate sheets, carried from our earlier read.

The State Bank rule is in BPRD Circular Letter No. 15 of 2026. Tax rates are in the Income Tax Ordinance, amended up to 30 June 2026. The effective rates for HBL are the bank's own figures. The after-tax amounts and comparisons are our own arithmetic. Rates change often, so check the bank's page before you open an account.