“Everything You Need to Know About Digital Prize Bonds in Pakistan: A Complete Guide for 2025”

Digital Prize Bonds
National Savings introduced a new type of prize bond officially known as the Digital Prize Bond. All the details in this post are based on the official 2023 document, and nothing is written from my side. These prize bonds function just like the regular ones. For example, the draw list for the regular prize bonds is published every three months, and similarly, the draw list for the Digital Prize Bonds will be released every three months. There will also be 1st, 2nd, and 3rd prizes. These bonds will also have issue dates, prefixes, and numbers, and you will need to match the number from the list in the same way you currently look for numbers in the regular prize bond list. However, the main differences between these and the regular bonds are listed below, along with the pros, cons, and feedback from Prize Bond Result:

1. Paperless Prize Bonds: The Digital Prize Bonds have no physical receipt, paper, card, or any other form. You will buy them on your mobile, keep them on your mobile, and can sell them from your mobile.
2. Number Format: Regular bonds consist of 6 digits, while the Digital Prize Bonds have 9 digits, according to the official document. In the regular prize bond list, there are 1696 third-prize numbers, while for Digital Prize Bonds, there are about 1750 prizes. The probability of winning is much lower in digital bonds because each number is 9 digits long, compared to 6 digits in regular bonds. Think of it as having 9 doors instead of 6 where the prize could be hidden. However, since NSC hasn’t introduced the Digital Prize Bond draw list yet, it’s unclear how they will conduct the draw.
3. Shut Period: This is the period when NSC stops selling bonds before the draw. For regular bonds, NSC stops selling the bonds two months before the draw, giving you only 30 days to purchase them. For Digital Bonds, the shut period is only 30 days, giving you 60 days to buy after the draw. This is a good move.
4. Categories: Regular bonds come in four denominations: 100, 200, 750, and 1500. Digital bonds are introduced in four categories: 500, 1000, 5000, and 10,000. Details about the first, second, and third prizes are provided in the official document and will be shared later. In 2023, it was announced that only 1000-rupee Digital Prize Bonds will be issued initially.
5. Digital Prize Bond is an Option, Not a Replacement: The Digital Prize Bond does not replace the regular (Bearer) bonds. Regular bonds will continue to exist. So, if you have regular bearer bonds, don’t worry and don’t sell them.
6. App for Digital Prize Bond: The Digital Prize Bond is available through the official National Savings Digital app. You can buy or redeem the digital bonds only through this app. The major issue with this app is that to create an account, you have to visit a National Savings branch in person, show your original CNIC, and provide proof of income.
7. No Expiry for Digital Prize Bonds: Unlike regular prize bonds, which expire after 6 years if the prize is not claimed, Digital Prize Bonds never expire. The prize will directly be credited to your account.
8. Ownership Transfer: The ownership of Digital Prize Bonds cannot be transferred. If they are under your CNIC, you cannot transfer them to someone else’s CNIC. If someone else wants them, they will need to buy them under their own account.
9. Tax on Prizes: The tax will be the same as for regular bonds, i.e., 15% or 35% for Filler and Non-Filler categories. There are no taxes or platform fees for buying or selling the prize bonds. If you buy a 1000-rupee bond and sell it 5 years later, you will still get 1000 rupees.
10. Zakat: There will be no Zakat deduction on Digital Prize Bonds. However, if you’re Muslim, you will need to include your digital prize bond in your Zakat calculations according to Sharia law.
11. Eligibility: To purchase a Digital Prize Bond, you must be Pakistani and have a valid CNIC, NICOP, or POC.

Frequently Asked Questions about Digital Prize Bonds:

1. When will Digital Prize Bonds start?
   The start date was set for August 14, 2023. However, due to some reasons, the project is delayed and has not gone live yet. No official date has been announced.
2. Where can they be purchased?
   Digital Prize Bonds can be purchased from the official National Savings Digital app available on Google Play Store or Apple Store.
3. Can’t create an account on the National Savings Digital app?
   Visit the nearest National Savings branch.
4. Will the account be a current or savings account?
   It will be a savings account, but you should avoid keeping money in it to prevent earning interest.
5. Will there be any interest on Digital Prize Bonds?
   No, Digital Prize Bonds do not accrue any interest like premium prize bonds.
6. Are Digital Prize Bonds like cryptocurrency?
   No, they are not related to cryptocurrency in any way.
7. Can I convert my regular bond into a Digital Prize Bond?
   You cannot convert them directly, but you can sell regular bonds and buy Digital Prize Bonds with the proceeds.
8. Is the introduction of Digital Prize Bonds a good step?
   Absolutely, in this digital era, Digital Prize Bonds are much needed.
9. Can only National Savings account holders buy Digital Prize Bonds?
   Yes, only National Savings account holders can buy and sell Digital Prize Bonds.
10. What documents are required to buy Digital Prize Bonds?
    A National Savings account is required. For opening an account, you need to show your ID card and proof of income.
11. How many times can a Digital Prize Bond be claimed?
    Official information on this is not yet provided.
12. Can I choose a specific number for my Digital Prize Bond?
    No, you cannot choose a specific number.