Bank Savings Profit Calculator

Under section 151 of the Income Tax Ordinance, the bank deducts 20% of the profit when it pays it, if you are on the FBR Active Taxpayers’ List (ATL). If you are not on the ATL, the Tenth Schedule doubles this to 40%. There is no tax-free amount: even a small profit is taxed. On Rs 1 million at 10%, a filer loses Rs 20,000 a year to tax and a non-filer Rs 40,000.

The State Bank requires conventional banks to pay individuals at least 0.5% below the floor of its interest rate corridor on rupee savings deposits, worked out on the monthly average balance. With the policy rate at 11.5% and the floor at 10.5% (SBP decision of 14 September 2026), the minimum is 10%. Since 1 August 2026 the minimum only covers individuals with a monthly average balance up to Rs 10 million; above that, the bank sets the rate.

It depends on the account. Many savings accounts credit profit every six months (usually June and December); “monthly profit” accounts pay every month, and some pay quarterly. The profit is worked out on your average balance over each month, so money that sits in the account for part of a month still earns something. Check your account’s terms for the payout dates.

Islamic banks do not promise a fixed rate. They share the profit of a pool of funds (mudarabah) and announce an expected rate, which can change from month to month. You can enter that expected rate above to estimate your profit. The same withholding tax applies to the profit you receive.

At the rates in October 2026, Regular Income Certificates pay more than a bank savings account (on Rs 1 million, Rs 8,585 a month against Rs 6,666 for a filer), and National Savings deducts 15% tax against 20% at the bank. But a bank account lets you withdraw at any time, while certificates lock your money for years. Compare with the National Savings calculator.