How it is worked out
- Profit per payout = Rs 5,000,000 × 10% × 1 ÷ 12 = Rs 41,667
- Tax = Rs 41,667 × 20% = Rs 8,333
- After tax = Rs 41,667 − Rs 8,333 = Rs 33,334
- Over 12 months = Rs 5,000,000 × 10% × 12 ÷ 12 = Rs 500,000, after tax Rs 400,000
- Rate after tax = 10% × (100% − 20%) = 8%
What this means for you
Over a year that is Rs 400,000 after tax (Rs 500,000 before Rs 100,000 tax), a return of 8%. The rate follows the State Bank’s policy rate: the minimum is 0.5% below the floor of its interest-rate corridor, so each 1% cut would lower this profit by about Rs 3,334 a month. Banks may pay more than the minimum, so compare their rates.
National Savings Regular Income Certificates pay Rs 42,925 a month on the same amount for a filer, but lock the money in for years, while a savings account lets you withdraw at any time. Many banks pay profit every six months rather than monthly; the total over the year is the same.
Banks also deduct 2.5% zakat from savings accounts on the first of Ramadan when the balance is above that year’s official nisab, unless you have given the bank a zakat exemption declaration (CZ-50). On Rs 5,000,000 that would be Rs 125,000.
Nearby amounts
| Balance | Filer, a month | Non-filer, a month |
|---|---|---|
| Rs 1,000,000 | Rs 6,666 | Rs 5,000 |
| Rs 2,000,000 | Rs 13,334 | Rs 10,000 |
| Rs 2,500,000 | Rs 16,666 | Rs 12,500 |
| Rs 5,000,000 | Rs 33,334 | Rs 25,000 |
| Rs 10,000,000 | Rs 66,666 | Rs 50,000 |
Sources
Rates checked on 14 October 2026.
- SBP: Monetary Policy Statement, 14 September 2026, and BPRD Circular No. 07 of 2013 (minimum profit rate on savings deposits)
- FBR Withholding Tax Rates Card, tax year 2027 (s.151: 20% filer, 40% non-filer)
This calculator gives an estimate for guidance. It is not official advice. Rates and rules change, so confirm important decisions with the relevant authority or a qualified professional. See how we calculate, or report a mistake.