A Prize Bond is a lottery bond that you can win through a lucky draw, non-interest bearing security published by the government, refundable to the bond carrier on demand. If you have purchased a prize bond but don’t know how it works, you need to read it. As in this article, we have shared how a prize bond works and the procedure of prize bond draws.
There are One less in one million (999,999) numbers of prize bonds in a series from which you can purchase as many prize bonds as you want. It means there is no limit on purchasing.
But the vital thing about purchasing them and increasing winning probability is that if you buy more prize bonds, there are high chances that you win instead of buying one or two prize bonds. So this is the reason behind 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 some random numbers.
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.
Lucky draw is held by a committee constituted by the Central Directorate of National Savings and 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 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.
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 the suggested form available at the National savings official website.
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 source at the time of payment of prize money.
We hope this article has resolved your concerned queries about the working and procedure of prize bonds, but if you still got any questions, you can contact us any time or leave a comment below to get guidance.