Best Fixed Deposit Rates in Pakistan 2026: Banks vs National Savings

There is Rs 500,000 sitting in your current account right now earning nothing. Not a savings account. A current account — the one your salary lands in, the one you pay bills from. Every month it sits there, inflation quietly takes its cut, and you tell yourself you will "do something about it soon."

Here is what "soon" costs you. The best fixed deposit rates in Pakistan in 2026 pay up to 10.90% a year at a commercial bank — and as of October 21, National Savings pays even more. On Rs 500,000, the gap between earning nothing and earning the best available 1-year rate is roughly Rs 58,000 a year. That is not investment advice. That is arithmetic.

But the ranking is not as simple as "pick the biggest number." The headline rate changes with your deposit size, the taxman takes a different cut depending on whether you file returns, Islamic banks quote their rates differently from conventional ones, and breaking a deposit early can wipe out most of the gain. This guide compares nine banks and National Savings on the numbers that actually reach your pocket — after tax, in rupees.

The Best 1-Year Fixed Deposit Rates in Pakistan in 2026

These are October 2026 rates from the banks' own published rate sheets, with the State Bank policy rate sitting at 11.50%. Every figure below is the annualised rate paid at maturity on a 1-year term deposit (also called a TDR):

• •JS Bank Term Deposit: 10.90% (minimum Rs 100,000) — the highest big-bank rate we found
• •HBL Advantage: 10.60% (minimum Rs 25,000)
• •Allied Bank Behtar Munafa: 10.50%
• •Bank Alfalah: 10.45% on Rs 1 million and above, 10.20% below Rs 1 million
• •Bank AL Habib Fixed Term: 10.00% (minimum Rs 25,000)
• •Meezan Bank Certificate of Islamic Investment: 9.56% (minimum Rs 50,000; September's actual declared profit)
• •UBL Mahana Aamdani: 9.00% (paid monthly, not at maturity)
• •MCB Term Deposit: 7.12% (minimum Rs 500,000)

Two things stand out immediately. First, the spread between the best and worst is enormous: JS Bank pays more than one and a half times what MCB pays. On Rs 1,000,000 for a year, that is the difference between Rs 109,000 and Rs 71,200 of gross profit. Second, MCB's 7.12% is below what several [best savings accounts in Pakistan](https://frinjo.me/blog/best-savings-accounts-in-pakistan-2026) pay with zero lock-in — which is exactly why you compare before you lock.

And notice the fine print that changes the ranking: Bank Alfalah's headline 10.45% only applies if you bring Rs 1 million or more. Walk in with Rs 500,000 and you get 10.20% — which drops it below Allied. The "best" rate is personal: it depends on how much you are depositing.

The October 21 Surprise: National Savings Just Raised Every Rate

Here is the part no bank advertisement will tell you. On October 21, 2026 — yesterday — the Central Directorate of National Savings raised profit rates across almost every scheme. The new rates:

• •Behbood Savings Certificates, Pensioners' Benefit Account, Shuhada Family Welfare Account: 12.96% (Rs 1,080 a month per Rs 100,000)
• •Regular Income Certificates: 12.12% (Rs 1,010 a month per Rs 100,000)
• •Defence Savings Certificates: 11.94% (cumulative; Rs 100,000 grows to roughly Rs 305,000 over 10 years)
• •Short Term Savings Certificates, 1 year: 11.72% (Rs 11,720 per Rs 100,000)
• •Short Term Savings Certificates, 6 months: 11.50% (Rs 5,750 per Rs 100,000)
• •Short Term Savings Certificates, 3 months: 11.12% (Rs 2,780 per Rs 100,000)
• •Special Savings Certificates: 12.00% for the first five half-yearly payments, 12.80% for the last
• •Standard Savings Account: 10.00% (unchanged)

Read that 1-year number again: 11.72%. The best commercial bank pays 10.90%. National Savings beats every bank on the list by nearly a full percentage point — before we even get to tax. And the 3-month certificate at 11.12% beats every bank's 3-month rate too.

There are catches, and they matter. Behbood's 12.96% is not open to everyone — it is for widows, senior citizens aged 60 and above, and disabled persons. Regular Income Certificates and the Short Term certificates are open to all adults. National Savings also deducts zakat where applicable, and you deal with a government counter instead of a bank branch. But on pure rate, the government is currently outbidding the banks.

The After-Tax Math Nobody Shows You

Every comparison table online stops at the gross rate. Your pocket does not receive the gross rate. Profit on bank deposits carries withholding tax: 15% if you are a tax filer, 30% if you are not. National Savings profit carries the same 15%/30% withholding structure. So the ranking survives tax — but the rupees change dramatically, and your filer status decides how much.

Take Rs 1,000,000 locked for one year. If you are a filer:

• •JS Bank at 10.90%: Rs 109,000 gross, minus 15% tax (Rs 16,350) = Rs 92,650 in your pocket
• •National Savings 1-year certificate at 11.72%: Rs 117,200 gross, minus 15% tax (Rs 17,580) = Rs 99,620 in your pocket
• •The real gap: Rs 6,970 a year per million — for walking to a different counter

Now the same million if you are a non-filer:

• •JS Bank: Rs 109,000 minus 30% (Rs 32,700) = Rs 76,300
• •National Savings 1-year: Rs 117,200 minus 30% (Rs 35,160) = Rs 82,040

A non-filer earns Rs 16,350 less than a filer on the identical JS Bank deposit. Read that as what it is: the single highest "return" available to most Pakistanis is not a better deposit — it is filing their tax return. The 15-point tax gap is bigger than the gap between the best and worst bank on our list. If you want the full picture on getting your filing right, our [FBR tax filing guide for freelancers](https://frinjo.me/blog/fbr-tax-filing-for-freelancers-in-pakistan-2026-guide) walks through the filer process step by step — the principles apply to salaried filers too.

One more number for perspective: a non-filer at MCB's 7.12% keeps Rs 49,840 per million per year. A filer at National Savings' 11.72% keeps Rs 99,620. Same million, same twelve months, double the money — from two decisions: where you deposit, and whether you file.

Short Terms: 1-Month, 3-Month and 6-Month Rates Compared

Not everyone can lock money away for a year. Maybe a school fee is due in four months, or you are parking a property down payment. Short-term rates follow the same ranking logic, and the same National Savings surprise applies:

1-month rates: Bank Alfalah pays 10.05% (Rs 1M+ tier) and 9.80% below it; HBL pays 9.28%; Bank AL Habib pays 9.00%; JS Bank pays 8.50%; UBL's Special Notice Deposit pays 8.50% for 7–29 days and 9.00% for 30 days and above; MCB pays 6.68%.

3-month rates: National Savings pays 11.12% — the clear winner. Among banks, Bank AL Habib pays 10.00%, Bank Alfalah 9.95% (9.70% below Rs 1M), JS Bank 9.66%, Allied 9.50%, HBL 9.15%, MCB 6.80%.

6-month rates: National Savings pays 11.50%. Among banks, JS Bank pays 10.07%, Bank Alfalah 9.95% (9.70% below Rs 1M), Allied 9.75%, HBL 9.40%, Bank AL Habib 9.00%, MCB 6.95%.

Worked example on Rs 1,000,000 for 3 months, filer, before tax: Allied's 10.00% earns roughly Rs 24,658; National Savings' 11.12% earns roughly Rs 27,419. That is Rs 2,761 extra for one quarter — from the same money, the same wait. The pattern holds at every tenure: at the short end, the banks compete with each other while National Savings sits above all of them.

Islamic Fixed Deposits: Meezan vs Sarwa

Islamic term deposits work differently, and the difference matters when you compare. A conventional bank contracts to pay you a fixed rate. An Islamic bank declares an expected profit rate and confirms the actual after the month ends — the number can move. Comparing a "9.56% actual" with an "11.84% expected" is not quite apples to apples, but it is the comparison every depositor makes, so here it is honestly labelled:

• •Meezan Bank Certificate of Islamic Investment: 9.56% for 1 year (minimum Rs 50,000) — this is what the bank actually declared for September, not a projection
• •National Savings Sarwa Islamic Term Account: 11.84% expected for 1 year, 12.10% for 3 years, 12.12% for 5 years
• •National Savings Sarwa Islamic Savings Account: 11.84% expected (no lock-in)
• •BankIslami's only term deposit open for new booking recently paid 8.50% for August, with monthly profit

The Sarwa numbers are expected rates, and Islamic banks can and do revise them. But the gap is wide enough — more than two percentage points — that even a downward revision leaves Sarwa ahead of the conventional-bank Islamic options. If you want riba-free returns with a lock-in, Sarwa's term account is currently the strongest option on the board; for a full comparison of Shariah-compliant choices, see our [Islamic savings accounts ranking](https://frinjo.me/blog/best-islamic-savings-accounts-in-pakistan-2026-profit-rates-compared) and our [sukuk investor's guide](https://frinjo.me/blog/sukuk-investment-in-pakistan-2026-the-rs-5-000-investor-s-guide).

Monthly Income Options: UBL Mahana Aamdani vs Regular Income Certificates

Some depositors do not want a lump sum at maturity — they want money every month. Retirees, landlords between tenants, anyone topping up a salary. Two products fight for this customer:

• •UBL Mahana Aamdani Term Deposit: 9.00% a year, paid monthly. On Rs 1,000,000 that is Rs 7,500 a month, Rs 90,000 a year.
• •National Savings Regular Income Certificates: 12.12% a year, paid monthly. On Rs 1,000,000 that is Rs 10,100 a month, Rs 121,200 a year.

The difference is Rs 2,600 every single month — Rs 31,200 a year — on the same million. And if you qualify for Behbood (widow, 60+, disabled), the monthly figure rises to Rs 10,800. For a deeper tour of income-generating options beyond deposits, our [monthly income investments guide](https://frinjo.me/blog/best-monthly-income-investments-in-pakistan-2026) covers rental, dividend and profit-payout routes side by side.

Why would anyone pick UBL's 9.00% then? Convenience and banking relationship: it sits inside your existing UBL account, auto-renews, and the money lands where your bills already get paid. Regular Income Certificates mean a National Savings centre visit and a separate holding. That convenience costs Rs 31,200 a year per million. Price it before you buy it.

The Early-Breakup Penalty: Read This Before You Lock In

A fixed deposit is a promise in both directions. Break it early and the bank keeps its side of very little. Most Pakistani banks handle premature encashment the same way: you get profit at the prevailing savings-account rate — not the term-deposit rate — for the period the money actually stayed, and some banks add an explicit penalty on top. In the worst common case, money broken in the first few weeks earns nothing at all.

Three rules before you sign the TDR receipt:

First, never lock money you might need. The deposit that gets broken early is the most expensive savings mistake on this list — you lose the rate advantage and sometimes the profit entirely. Money you might need in the next six months belongs in a high-profit savings account, not a TDR. And money you might need next week is not savings at all — it is your [emergency fund](https://frinjo.me/blog/emergency-fund-in-pakistan-how-much-to-save-in-2026), and it stays liquid, always.

Second, read the encashment clause on the receipt itself, not the brochure. Ask the officer: "If I break this after four months, exactly what rate do I get?" Get the answer before the money moves.

Third, match the tenure to the goal. School fee due in June? Book 6 months, not 12. The 6-month rate is only slightly lower than the 1-year rate at most banks (JS Bank: 10.07% vs 10.90%), and a deposit that survives to maturity at 10.07% beats a broken 10.90% deposit every time.

Who Should Pick What

The salaried saver with Rs 200,000 to Rs 500,000: you are below Bank Alfalah's Rs 1M tier and MCB's Rs 500K tier, so ignore their headline numbers. Your real shortlist is JS Bank (10.90%, Rs 100,000 minimum), HBL (10.60%, Rs 25,000 minimum), Allied (10.50%), or National Savings' 1-year certificate (11.72%, no tier games). On pure return, National Savings wins; on convenience, JS Bank.

The retiree who needs monthly income: National Savings Regular Income Certificates at 12.12%, or Behbood at 12.96% if you are eligible. UBL Mahana Aamdani's 9.00% is only defensible if you value keeping everything inside one bank account at Rs 31,200 a year per million.

The business owner parking working capital: short tenures only — 1 to 3 months, matched to your cash cycle. Bank Alfalah's 1-month 10.05% or Allied's 3-month 10.00% beat letting supplier money idle in a current account. And if slow customer payouts are the reason your cash sits idle in the first place, that is a collections problem as much as a savings problem — faster settlement through proper [payment integration for your online store](https://frinjo.me/services/payment-integration) shrinks the idle window itself.

The Shariah-conscious saver: National Savings Sarwa Islamic Term Account (11.84% expected, 1 year) currently leads Meezan's 9.56% actual by a wide margin. Remember the expected-vs-actual distinction, and revisit the declared rates quarterly.

The non-filer sitting on cash: stop reading deposit tables and file your return. The 15-percentage-point tax cut on your profit is worth more than any rate on this page. Then come back and pick from the filer column.

Five Rules Before You Book a Fixed Deposit

One, compare the after-tax number, not the advertised rate. A 10.90% headline at 30% withholding is 7.63% in your pocket.

Two, check the minimum deposit for the tier you actually qualify for. Alfalah's 10.45% needs a million; your Rs 400,000 gets 10.20%.

Three, never lock your emergency fund. Six months of expenses stays in a liquid savings account, untouched by tenure.

Four, read the premature-encashment clause before the money moves, and match the tenure to the date you need the money back.

Five, recheck rates every quarter. National Savings moved twice in seven weeks this autumn — September 4 and October 21. Bank rate sheets move monthly. The best deposit in January is rarely the best deposit in October.

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Rates above are from banks' published October 2026 rate sheets and the Central Directorate of National Savings notification effective October 21, 2026, as reported in the financial press. Banks revise term-deposit sheets monthly and National Savings revises on its own cycle — confirm the current sheet at your branch or the CDNS website before you book, because these numbers move.