Whether you’re a budding saver, a savvy investor, or a frequent traveller, the Pakistani banking system offers a range of options tailored just for you. From current accounts to fixed deposit banking solutions, you can choose between several bank account types in Pakistan.
Well, this guide will get you on a journey to explore the various account types available, each promising unique features and benefits. Join me as I unveil the key players in the realm of banking in Pakistan and unravel the perfect account for your financial aspirations.
What is a Bank Account?
A bank account is an essential financial tool provided by a banking institution, enabling customers to engage in various financial transactions while maintaining a record of their financial position. It serves as a security arrangement where individuals can deposit their money, allowing the bank or financial institution to safeguard their funds.
By acting as a financial intermediary, the bank utilises these deposited funds to invest in productive resources, while also offering remuneration to account holders from the profits earned. Bank accounts are a practical means to effectively manage your day-to-day finances, providing convenient access to your money when needed.
What Are Bank Account Types in Pakistan?
In Pakistan, five types of bank accounts are typically offered by the majority of the banks. Here are those types:
- Basic Banking Account
- Current Account
- Savings Account
- Fixed Deposit Account
- Foreign Currency Account
Before getting to the HBL Credit Card Online Apply or for the other bank, check the following table to know the different aspects of these account types.
|
Categories |
Basic Banking Account |
Current Account |
Savings Account |
Term Deposit |
Foreign Currency Account |
|
Minimum Balance |
No |
Yes |
Yes |
N/A |
N/A |
|
ATM Card |
Yes |
Yes |
Yes |
No |
Yes |
|
Debit Card |
Yes |
Yes |
Yes |
No |
Yes |
|
Direct Debits |
Yes |
Yes |
Yes |
N/A |
Yes |
|
Profit Payment |
No |
No |
Yes |
Yes |
Yes |
|
Cheque Withdrawal |
Two per month |
Unlimited |
Unlimited |
No |
Unlimited |
|
Restriction on Deposits |
Two per month |
No |
No |
Yes |
No |
|
ATM Withdrawal |
Unlimited |
Unlimited |
Unlimited |
No |
Unlimited |
|
Internet or Mobile Banking |
Yes |
Yes |
Yes |
No |
Yes |
|
Utility Bills Payment |
Yes |
Yes |
Yes |
No |
N/A |
Here are the detailed explanations for all the account types:
Basic Banking Account
The Basic Banking Account (BBA) is a straightforward banking option provided by major commercial banks in Pakistan. It caters to customers seeking basic banking services with minimal transaction needs.
Key Features of Basic Banking Account:
- No account maintenance fee.
- Non-profit bearing accounts with no interest rate.
- Exempt from Zakat deduction.
- The account may be closed if a balance remains ‘nil’ for six consecutive months.
- Up to four free transactions per month (two deposits and two withdrawals via check); additional transactions may incur a small fee.
- Unlimited ATM service, with free withdrawals from the bank’s ATMs; other banks’ ATMs may charge transaction fees.
- Option to switch to BBA from any other account type.
The Basic Banking Account provides a cost-effective solution for individuals requiring basic banking services while minimising transactional requirements.
Current Account
The Current Account is widely favoured among individuals, businessmen, and commercial entities in Pakistan, as it offers convenient day-to-day transaction capabilities. This popular account type allows unrestricted deposits and withdrawals, making it an ideal choice for managing business finances effectively.
When it comes to opening a Current Account, both private and public sector banks provide a variety of options to cater to customer preferences and requirements.
Key Features of a Current Account:
- Non-interest-bearing account.
- Exempt from annual Zakat deductions.
- Debit card service with unlimited transactions, although daily ATM withdrawal boundaries may differ depending on the bank.
- Free phone banking service.
- No restrictions on the number of check deposits and withdrawals.
- Free internet and online banking services.
- SMS and email alerts for all transactions.
The Current Account serves as a versatile banking solution, offering seamless financial management for individuals and businesses alike, facilitating easy access to funds for day-to-day operations.
Savings Account
Savings accounts serve as a secure avenue for safeguarding and growing your savings. In contrast to current accounts, they offer the added benefit of earning interest over time. This means that the funds you deposit in your savings account can accumulate a modest profit, allowing your savings to grow gradually.
In Pakistan, banks provide a range of savings accounts tailored to individuals seeking to generate income through interest. These accounts offer various benefits and features to cater to diverse financial needs.
Key Features of a Savings Account:
- Interest-bearing account.
- Most banks calculate interest on a monthly average basis.
- Withholding tax and zakat are deducted as per regulations.
- Funds can be accessed at any time, ensuring liquidity.
- Banks periodically credit the earned interest to the client’s account.
- Debit cards enable unlimited transactions, providing convenient access to funds.
- Free online banking services empower customers to manage their savings digitally.
- Free phone banking services facilitate easy account inquiries and assistance.
Savings accounts provide a reliable platform to both preserve and grow your savings, offering the opportunity to accumulate interest over time while maintaining accessibility to your funds.
Fixed Deposit Account
Fixed Deposit Accounts, commonly known as Term Deposit Accounts, present customers with the opportunity to deposit a significant amount of money and earn profitable returns on their investment. These accounts typically offer a higher rate of return compared to regular savings accounts.
However, it is important to note that funds in a fixed deposit account cannot be withdrawn before a specific period of time. Typically, fixed deposit accounts have a predetermined time frame that can range from one month to 10 years.
Key Features of a Fixed Deposit Account:
- Higher rate of return on the investment.
- Fixed interest rate all through the deposit duration.
- Zakat may be deducted as per applicable regulations.
- Customers can make a one-time deposit into the account.
- Earned profit can be gathered on a quarterly or monthly basis, relying on the bank’s policy.
- The term of a fixed deposit account can be renewed upon maturity.
- Withdrawal of funds through a check or ATM card is not allowed until the term is completed.
- Internet banking facility is not available for fixed deposit accounts.
Fixed Deposit Accounts provide a lucrative option for customers looking to maximise their returns on a lump sum investment. While offering a fixed interest rate and the potential for regular profit collection, these accounts require a commitment to keeping the funds deposited for the agreed-upon term.
Foreign Currency Account
Foreign Currency Accounts cater to overseas Pakistanis, charitable institutions, dual national citizens and commercial entities. These specialised bank accounts solely accept deposits in foreign currencies.
Most banks in Pakistan provide both current and savings foreign currency accounts, providing options to deposit funds in US dollars, Euros, British pounds, and Japanese Yen.
Key Features of a Foreign Currency Account:
- Exclusive acceptance of deposits in foreign currency.
- Option to transfer funds abroad.
- Possibility to earn interest for savings accounts.
- Deduction of Zakat and other applicable taxes from foreign currency savings accounts.
- Availability of services such as Traveller’s checks and remittances.
- Utilisation of its credit card for transactions within and outside Pakistan.
- Facility to transfer funds between different accounts.
- Non-residents may be exempt from withholding tax and Zakat, subject to bank policies.
Foreign Currency Accounts offer a specialised banking solution for individuals and entities dealing with foreign currencies, facilitating ease of transactions and providing potential financial benefits such as interest earnings.
