Bank Profit Rates Pakistan 2026 Compared: Meezan, HBL, UBL, Alfalah, NBP, Al Baraka (July Update)

Pakistani savers have never had it easier to compare rates across banks, and never had more incentive to actually do it. The State Bank policy rate sits at 11.5 percent (held on 15 June 2026, raised from 10.5 percent on 27 April 2026), and different banks are passing that yield through very differently. This guide compares the July 2026 profit rates on savings accounts and term deposits from Pakistan's largest banks (Meezan, HBL, UBL, Bank Alfalah, NBP, Al Baraka), highlights the highest current yield in each category, and explains the withholding tax math you need to figure out your net return.

All rates verified against official bank rate sheets on 11 July 2026. Rate sheet URLs are in Sources at the top of this page. We refresh this comparison every month after major banks publish updated sheets.

Use our Al Meezan Money Market Profit Calculator to model your specific deposit amount and tenure across different rate scenarios.

TL;DR: highest profit rates in Pakistan right now (July 2026)

If you have Rs 100,000 to Rs 1,000,000 sitting idle and want to put it to work, the shortlist:

Best savings account (liquid, no lock-in): HBL Daily Munafa or HBL Nisa Savings at 10.00 percent simple / 10.47 percent effective. Bank Alfalah SnaPack digital at 9.25 percent is a solid second.

Best 1-year term deposit: HBL Advantage Account 1 year at maturity = 10.60 percent. Bank Alfalah 1 year Tier 2 at maturity = 9.95 percent. Meezan COII 1 year at maturity = 9.47 percent.

Best 3 to 5-year term deposit: NBP Premium Aamdani Certificate (5-year, rate steps up to 12.25 percent in year 5). Al Baraka Mahana Amadani (up to 12.25 percent monthly payout). HBL Advantage 5 year at maturity = 11.95 percent.

Best Islamic savings: Meezan Bachat Account or Meezan Rupee Savings at 6.58 percent monthly (Mudarabah profit-sharing). For higher yield, shift to Meezan COII 1 year maturity at 9.47 percent or Meezan Aamdan Certificate 5.5-year Senior at 10.00 percent.

Now the detailed comparison.

SBP policy rate and the wider rate environment

Every retail rate in Pakistan anchors off the State Bank policy rate. Current state (verified 15 June 2026):

• Policy rate: 11.5 percent (held)
• Previous change: Raised 100 bps from 10.5 to 11.5 percent on 27 April 2026
• Cutting cycle: Paused after the April 2026 hike. MPC cited May 2026 headline inflation at 11.7 percent (above the 5 to 7 percent target range) as the reason for holding.
• Forward guidance: MPC expects double-digit inflation "for the next few months, before gradually easing". Analysts split between "hold through Q4 2026" and "gradual cuts starting Sep 2026 MPC".

1-year KIBOR trades around 11 to 12 percent. Bank 1-year term deposit maturity rates cluster in the 9.5 to 10.6 percent band, roughly 100 to 200 bps below KIBOR (banks skim the spread). Multi-year deposits with rate stepping (NBP Premium Aamdani, HBL Advantage 5-year) can outpace 1-year deposits because rate risk is priced into the tail years.

Practical read: If you believe SBP will cut in the next 6 to 12 months, lock a 3 to 5-year fixed-rate deposit NOW at 10 to 12 percent to capture the current yield through the cut cycle. If you believe SBP will hike further, stay in liquid savings and roll into new fixed deposits after each hike.

Savings Accounts side-by-side (July 2026)

Rates below are verified against each bank's official rate sheet. All percentages are per annum. "Simple" is the stated annualized rate, "Effective" is the compounded actual yield when profit is credited monthly / quarterly and reinvested.

Takeaway: For pure savings account yield, HBL Daily Munafa / HBL Nisa at 10.47 percent effective is the highest in the market. Bank Alfalah Kifayat / Pehchaan at 9.30 percent on higher balance tiers is close. UBL sits uniformly at 9.00 percent. NBP PLS Savings is the outlier at 5.00 percent because NBP directs high-yield savers into their Premium Aamdani Certificate instead.

Term Deposits and Certificates side-by-side (July 2026)

Term deposits require locking capital for a fixed tenure in exchange for higher yield. Early withdrawal penalties apply. Rates below are for the highest maturity or monthly-payout option per bank.

Term deposit takeaways:

• NBP Premium Aamdani is the highest per-annum headline on multi-year tenure. The rate steps up each year (11.25%, 11.50%, 11.75%, 12.00%, 12.25%) so the blended 5-year yield is 11.75 percent. Withholding tax and Zakat apply.
• HBL Advantage dominates single-tenure maturity payouts. At 10.60 percent for 1 year and 11.95 percent for 5 year at maturity, HBL Advantage is the best liquid-ish fixed deposit if you can commit for the tenure.
• Meezan COII 1 Year at Maturity at 9.47 percent is the leading Shariah-compliant 1-year deposit for retail savers. For senior citizens, Meezan Aamdan Certificate 5.5-year at 10.00 percent monthly payout is genuinely competitive with conventional 5-year deposits and beats most Islamic peers.
• Al Baraka Mahana Amadani advertises up to 12.25 percent monthly payout, matching NBP Premium Aamdani year 5 rate on an Islamic Mudarabah structure. Verify the specific tenure and tier with the branch before signing.
• UBL Term Deposits trail HBL and Alfalah by 1 to 2 percentage points across every tenure. UBL Regular customer proposition is convenience (UBL Omni, Wiz card, digital wallet) rather than deposit yield.

Islamic vs Conventional: profit-sharing math

The theological difference matters. The financial difference is smaller than you might expect.

Conventional (HBL, UBL, Alfalah, NBP):

• Profit is a fixed interest rate declared in advance.
• Bank guarantees the rate for the tenure (or the sheet period on savings).
• Rate resets when the rate sheet updates.
• Called Riba in Islamic jurisprudence, hence non-permissible for observant Muslims.

Islamic (Meezan, Al Baraka, Bank Islami, Faysal Islamic):

• Profit is a share of the Mudarabah pool's ACTUAL performance, declared in arrears.
• Bank publishes a "provisional" rate; the actual paid rate is usually within +/- 0.5 percent of provisional.
• No guarantee: theoretically pool could underperform (has essentially never happened at any major Islamic bank in Pakistan).
• Shariah-compliant. Certified by the bank's Shariah Board and reviewed by SBP.

Historical yield comparison: Over the last 3 years, top Islamic savings products (Meezan Bachat, Al Baraka Mahana Amadani, Faysal Islamic Business Saver) have paid within 1 percentage point of top conventional peers on average. Islamic certificates and term deposits track KIBOR just like their conventional counterparts, adjusted for the Mudarabah split. So the practical financial cost of picking Shariah-compliant products is often less than 100 basis points annually.

Withholding tax on bank profit: filer vs non-filer

Every rupee of bank profit is taxable in Pakistan. The bank withholds at source under Section 151 of the Income Tax Ordinance, and Section 7B makes it a Final Tax for individual depositors (no additional filing tax due on that profit).

Filer rate: 15 percent WHT on bank profit Non-filer rate: 35 percent WHT on bank profit (Finance Act 2024 raised from 30 to 35 percent for banking transactions in general)

Practical arithmetic on Rs 1,000,000 at 10 percent per annum:

• Gross profit for the year: Rs 100,000
• Filer WHT (15%): Rs 15,000. Net take-home: Rs 85,000
• Non-filer WHT (35%): Rs 35,000. Net take-home: Rs 65,000

Non-filer penalty: Rs 20,000 per year on a Rs 1 million deposit. Filing your FBR return (annual, deadline 30 September) costs you at most a few hours of work through the FBR IRIS portal once you know the flow. See our Freelancer Tax Guide for the practical filing walkthrough.

Zakat: Deducted at 2.5 percent on the eligible balance on 1st of Ramzan (from Nisab-eligible accounts). Depositors can file a Zakat Exemption declaration (Form CZ-50) with the bank if they distribute Zakat privately.

National Savings vs Bank Deposits: which wins?

Central Directorate of National Savings (CDNS) is the government-guaranteed alternative to bank deposits. Key products and July 2026 rates:

• Behbood Savings Certificates (BSC) for widows, senior citizens (60+), disabled: around 15 percent, monthly profit
• Special Savings Certificates (SSC) 3-year: around 13 percent, half-yearly profit
• Regular Income Certificates (RIC) 5-year: around 13 percent, monthly profit
• Defence Savings Certificates (DSC) 10-year: around 13 percent compound
• Pensioners Benefit Account (PBA): 15 percent, for retired government employees

National Savings advantages:

• Higher headline yields than most banks on comparable tenures
• LOWER WHT for filers: 10 percent (vs 15 percent for bank deposits)
• Government guarantee (SBP-backed)
• Behbood / PBA reserved for vulnerable groups at premium rates

Bank deposit advantages:

• Better liquidity: earlier withdrawal options exist even if penalized
• Wider product range: from overnight sweeps to 10-year rate-stepped certificates
• Digital access: mobile app, real-time balance, ATM
• Better on FCY deposits (USD, GBP, EUR)

Best practice: Diversify. Use bank savings for emergency fund and monthly cash flow (10 to 20 percent of savings). Use bank 1 to 2 year term deposits for medium-term goals (30 to 40 percent). Use National Savings SSC / RIC / BSC for long-term stable income (40 to 60 percent). If you or a parent qualifies for Behbood or PBA, take it: the 15 percent guaranteed monthly income is nearly impossible to beat with a private-sector product.

Where each bank fits: quick shortlist by profile

Salaried professional in a big city (Rs 300,000 monthly income):

• Payroll account: UBL Zindagi or HBL Standard Chequing (utility and convenience beat yield here)
• Emergency fund: HBL Daily Munafa or Bank Alfalah SnaPack at ~10 percent
• Medium-term goal (house down payment): HBL Advantage 1 year at 10.60 percent maturity
• Long-term wealth: National Savings SSC 3 year + NBP Premium Aamdani 5 year mix

Retired senior citizen (65+, Rs 3 million in savings):

• Monthly income: National Savings Behbood Savings Certificates (BSC) 15 percent monthly (highest in market for eligible seniors)
• Backup liquidity: HBL Rutba account at 10.47 percent for 3 to 6 months of expenses
• Growth allocation: Meezan Aamdan Certificate 5.5-year Senior at 10.00 percent monthly (if riba-aversion matters)

Islamic-only depositor:

• Savings: Meezan Bachat or Meezan Rupee Savings at 6.58 percent (mudarabah)
• 1-year certificate: Meezan COII 1 Year Maturity at 9.47 percent
• Multi-year certificate: Al Baraka Mahana Amadani up to 12.25 percent OR Meezan Aamdan Certificate 5.5-year at 8.94 to 10.00 percent

Business / SME depositor (Rs 5M+ float):

• Business savings: Meezan Karobari Munafa (business Islamic) at 6.58 percent OR Bank Alfalah Institutional Royal Savings at 7.50 to 8.25 percent tiered
• Short-term cash management: UBL Investment Account for FIs/PSEs/PLCs (special negotiated rates)
• Islamic option: Meezan Islamic Institutions Deposit Account (MIIDA) NBFI at 6.97 percent

What we did not cover (this month)

This July 2026 update focused on the 6 largest depository banks by branch network. Excluded but worth checking directly if they are your primary bank:

• MCB Bank (MCB Ismail Savings, MCB 365 Gold): rate sheet updates less frequently, verify current numbers at mcb.com.pk
• Faysal Bank Islamic (Faysal Halal Munafa): typically within 100 bps of Meezan
• Bank Al Habib (AL Habib PLS Savings): typically within 50 bps of HBL PLS
• Standard Chartered Pakistan (Priority Saver): stronger for high-net-worth tiers, verify eligibility
• Askari Bank, Soneri, Silk Bank, JS Bank: local mid-tier, check individual sheets

We add these to future monthly updates as we obtain verifiable current rate sheets.

How to actually pick

Four levers determine your yield on any deposit:

1. Product type. Savings account (liquid) < Term deposit (fixed tenure) < Certificate (longest tenure). Yield rises with tenure.
2. Tenure. 3 months < 6 months < 1 year < 5 years generally. Rate curve is usually upward-sloping.
3. Amount tier. Higher balances often unlock higher tiers (Bank Alfalah Kifayat, HBL Nisa, Institutional Royal). Check the tier table.
4. Payout frequency. Monthly payout = simple rate. Six-monthly / maturity payout = simple rate + compound gain = higher effective rate. If you do not need the monthly cash, take the maturity option.

Filer status is the single biggest hidden lever. On a Rs 1M / 10 percent per annum deposit, filer vs non-filer costs you Rs 20,000 per year for the rest of your life. File your annual return. It costs a few hours and saves you the equivalent of 2 to 5 percent per year on your entire savings pool.

Monthly update schedule

We refresh this comparison every first week of the month after major banks publish their new rate sheets. Previous months' snapshots are archived at the bottom of this page:

July 2026 (current): SBP holds at 11.5 percent. Meezan Rupee Savings 6.58 percent, HBL PLS 10.00 / 10.25 percent effective, HBL Advantage 5Y maturity 11.95 percent, NBP Premium Aamdani Y5 12.25 percent.

Bookmark this page. Rate sheets change more often than most savers realize.

Related tools

• Al Meezan Money Market Profit Calculator - model your specific deposit in the AMMF pool
• Savings Goal Calculator - work out how much monthly deposit you need to hit a target
• Retirement Savings Calculator - project your nest egg using current bank + National Savings rates
• SIP Calculator - compare a systematic bank deposit plan against mutual fund SIPs
• Zakat Calculator Pakistan - work out Zakat due on your bank balances at Ramzan

Verified against official bank rate sheets on 11 July 2026. All linked source URLs above. This is a data comparison, not investment advice. Always verify the current rate at the bank branch or on the bank's most recent rate sheet PDF before making a deposit decision.