How does a prize bond work? Let’s find out!
A Prize Bond is a lottery bond you can win through a lucky draw, non-interest bearing security published by the government, and refundable to the bond carrier on demand.
You need to read if you have purchased a prize bond but don’t know how it works. In this article, we have shared how a prize bond works and the procedure of prize bond draws.
Complete Guide On How Does A Prize Bond Work In 2022
There is one less in one million (999,999) prize bonds in a series from which you can purchase as many as you want. It means there is no limit on purchasing.
But the vital thing about purchasing them and increasing the winning probability is that if you buy more prize bonds, you have a high chance of winning instead of buying one or two. So this is why small investors don’t win a prize, and big prizes go to big investors.
Besides this, people who regularly invest in prize bonds claim that they are more likely to win prizes when they buy them in series instead of random numbers.
Prize Bond Draw
As far as the prize bond draw is concerned, the State Bank of Pakistan issues a schedule of draw dates for each year from which you can know the draw date for any denomination.
The lucky draw is held by a committee constituted by the Central Directorate of National Savings and is open to the general public. Winning prize bonds are drawn through a Hand-operated draw machine.
Usually, special children operate it in front of Committee members and the general public attending the draw ceremony. The general public also checks the draw machine before the start of the draw.
The general public needs the production of the original CNIC to attend the ceremony. After the draw, you can check the complete results online.
One can lodge the prize money claim regularly after 3 or 4 working days from the draw date and within six years from the appropriate draw date.
Claiming Prize Bond
To claim your prize, fill in the claim form and submit it with your NIC copy to the State Bank of Pakistan. Also, there are some specific guidelines for application forms of all denominations of Prize Bonds, including the prize money up to Rs. 1,250/- can be demanded from any National Savings Centre, offices of the State Bank of Pakistan, or branches of authorized scheduled banks.
Prize money surpassing Rs. 1,250/- can be claimed only from the State Bank of Pakistan branches.
To claim the prize money, fill out the suggested form available at the National Savings official website.
Tax On Prize Money
Besides this, you need to remember that if you win a prize, govt will deduct a tax like 30% for non-filers against the prize money. And 15% for filers against the prize amount is subtracted at the source at the time of payment of prize money.
We hope this article has resolved your concerns about the working and procedure of prize bonds, but if you still have any questions, you can contact us any time or leave a comment below to get guidance.