Guide · 8 minute read
Committee (BC) vs bank savings vs National Savings: which is better?
By Muhammad Ishaq · Last updated:
Ask almost any Pakistani family how they saved for a wedding, a motorbike or a fridge, and a committee (BC) will probably come up. A committee is simple, it runs on trust, and it forces you to save every month.
But a committee pays no profit, and it carries risks a bank or National Savings doesn't. This guide compares the three options side by side, so you can decide which one fits each goal. It doesn't recommend any bank, scheme or app.
Committee, bank or National Savings at a glance
| Committee (BC) | Bank savings account | National Savings | |
|---|---|---|---|
| Profit | None | Set by each bank; SBP sets a minimum (see below) | Fixed rates per scheme, e.g. 10% a year on the National Savings Account (from 21 October 2026) |
| Tax on profit | None | Deducted automatically; non-filers pay double | Deducted automatically; non-filers pay double |
| Who protects the money | Only the trust between members | Deposit Protection Corporation, up to Rs 10 lakh per depositor per bank | Government schemes run by the Central Directorate of National Savings |
| Records | Often none | Bank statements | Certificates or account statements |
| Get money early | Only on your turn, or by swapping turns | Any time | Any time from the account; certificates may have early-withdrawal rules |
| Main strength | Discipline and a lump sum early, without interest | Easy access | Higher fixed profit |
Rates and tax rules change. The figures here were checked in November 2026; see the sources at the end.
How a committee works
A group of people, often relatives, neighbours or colleagues, agree to pay a fixed amount every month. Each month, one member receives the whole pot. The order is decided by a draw (ballot) or agreed in advance, and the committee ends when everyone has had a turn.
Worked example
Ten members each pay Rs 10,000 a month for ten months. Every month, one member receives Rs 1,00,000. Everyone pays in Rs 1,00,000 in total and gets Rs 1,00,000 back. No one earns or pays interest.
Committees are common. A Karandaaz study from 2019, reported by Business Recorder, found that of the people in Pakistan who save, 33% save through committees and only 4% with a formal financial institution.
Why people like committees
- Discipline. You have promised the group. That pressure makes people save who would otherwise spend.
- No interest. Members who get an early turn receive a lump sum and repay it over the following months with no interest, which matters to many families for religious reasons.
- A lump sum when you need it. If a wedding, admission fee or Eid is coming, you can ask for an early turn.
- No paperwork. No bank account, documents or minimum balance needed.
The risks of a committee
Fraud and default
The money depends entirely on people keeping their word. If a member who already received the pot stops paying, or the organiser disappears, the others lose out, and there is usually no regulator to complain to. In December 2022, Dawn reported that around 200 people, mostly women, had allegedly lost about Rs 420 million in a Karachi "ballot committee" run with no written records of who had paid.
No written records
Many committees are run in cash, from memory or a notebook. When there is a dispute, there is little to prove who paid what.
Inflation eats the later payouts
The last member gets the same Rs 1,00,000 as the first, but ten months later. With prices rising 9.6% a year (the Pakistan Bureau of Statistics' figure for October 2026), Rs 1,00,000 received in ten months' time is worth about Rs 92,600 in today's money (our calculation: Rs 1,00,000 divided by 1.096 to the power of 10/12, for ten months of price rises). The first member gains; the last member quietly loses.
How to join a committee safely
- Only join people you know well, and know where each member lives or works. Be very careful with large committees run on social media.
- Write it down. A simple signed sheet with each member's name, CNIC number, phone number, monthly amount and turn, shared with everyone.
- Pay by bank transfer or wallet, not cash, so there is a record of every payment.
- Agree the rules in advance: the payment date, what happens if someone pays late, and what happens if someone stops paying after their turn.
- Keep the amount affordable. Never join with money you need for rent or food, and never borrow to pay a committee.
- Be wary of promised "profit". A committee doesn't earn anything. An organiser who promises returns is running something else.
How bank savings and National Savings compare
Bank savings account
SBP requires banks to pay a minimum profit rate on rupee savings accounts, linked to SBP's floor (overnight repo) rate. With the floor rate at 11% from 27 October 2026, the minimum is 10.5% a year from 1 November 2026, for individuals with an average monthly balance of up to Rs 10 million (our calculation). SBP's policy rate is 12% from 27 October 2026. Banks can pay more than the minimum, and Islamic banks follow separate rules. Deposits are covered by the Deposit Protection Corporation up to Rs 10 lakh per depositor per bank.
Tax is deducted from your profit automatically. The rate depends on whether you're on FBR's Active Taxpayer List: non-filers pay double. Check FBR's current withholding tax card for the exact rate.
National Savings
National Savings schemes pay fixed rates that the government revises from time to time. From 21 October 2026, as reported by Business Recorder, Daily Pakistan and Daily Times:
- National Savings Account: 10%
- Short Term Savings Certificates: 11.12% (3 months), 11.50% (6 months), 11.72% (1 year)
- Sarwa Islamic Savings Account: 11.84%
- Regular Income Certificates: 12.12%, or Rs 1,010 a month for every Rs 1,00,000
- Behbood Savings Certificates, Pensioners' Benefit Account and Shuhada Family Welfare Account: 12.96%, or Rs 1,080 a month for every Rs 1,00,000. Behbood takes a minimum of Rs 5,000 and a maximum of Rs 75 lakh (Rs 7.5 million). Only certain groups can open these, so check eligibility with National Savings first.
Certificates may have rules for early withdrawal, so check with National Savings before you invest. Tax works the same way as at a bank: it is deducted from your profit automatically, non-filers pay double, and FBR's current withholding tax card has the exact rate.
The same savings, three ways
Save Rs 10,000 a month for ten months:
- Committee: you get Rs 1,00,000.
- National Savings Account at 10%: about Rs 1,04,700 before tax (our calculation, profit added monthly).
- Bank account at the 10.5% minimum: about Rs 1,04,940 before tax (our calculation).
Tax is then deducted from the profit, so you receive a little less. The difference is small over ten months, but it grows over years, and neither depends on nine other people paying on time.
Which is better for you?
- Emergency fund: a bank or National Savings account, where you can reach it any day. Our emergency fund guide explains how much to keep.
- A goal one to three years away, such as a wedding or Hajj: a savings account or certificates that earn profit. See how to save for a wedding, Hajj or Umrah.
- A lump sum you need soon, without interest: an early turn in a committee you trust can make sense.
- If you struggle to save at all: a small committee can build the habit. Move the payout into a savings account when it arrives.
Many families use both: a committee for discipline and a bank or National Savings for safety. To see how much you can save each month, try our monthly budget plans.
Frequently asked questions
Is a committee (BC) better than a bank?
It depends on the goal. A committee builds discipline and can give you an interest-free lump sum early, but it pays no profit and has no protection. A bank or National Savings pays profit, keeps records and lets you withdraw any time.
Is a committee halal?
A committee where everyone pays and receives the same amount, with no extra charge, is widely regarded as interest-free. For a religious ruling on your own situation, ask a scholar you trust.
What happens if a committee member stops paying?
Unless the group agreed rules in advance, the other members usually lose that money. Committees are informal, so there is no regulator to complain to. A signed list of members and payments by bank transfer make it easier to recover money.
What is the National Savings profit rate in 2026?
From 21 October 2026: 10% on the National Savings Account, 11.12% to 11.72% on Short Term Savings Certificates (3 months to 1 year), 11.84% on the Sarwa Islamic Savings Account, 12.12% on Regular Income Certificates, and 12.96% on Behbood Savings Certificates and the Pensioners' Benefit and Shuhada accounts. Rates change, so check before you invest.
Is money in a Pakistani bank protected?
Eligible deposits at member banks are protected by the Deposit Protection Corporation, a subsidiary of the State Bank of Pakistan, up to Rs 1 million (Rs 10 lakh) per depositor per bank, as reported by Dawn in June 2026.
Related guides
Sources
- Business Recorder: National Savings schemes profit rates increased (22 October 2026)
- Daily Pakistan: National Savings changes profit rates for certificates and accounts (21 October 2026)
- Daily Times: National Savings raises profit rates across multiple schemes (October 2026)
- State Bank of Pakistan: DMMD Circular No. 04 of 2026 (floor rate)
- Allied Bank: minimum profit rate on savings accounts
- State Bank of Pakistan: Monetary Policy Statement, 26 October 2026 (policy rate 12%)
- Dawn: Deposit Protection Corporation coverage of Rs 1 million per depositor (June 2026)
- Business Recorder: Karandaaz 2019 study on committees (December 2022)
- Dawn: "Gullible depositors lose 'Rs420m' in Ponzi scheme" (5 December 2022)
- Pakistan Bureau of Statistics: Monthly Review on Price Indices, October 2026
This guide is for general education only. It is not financial, tax or legal advice. Figures are examples or general guidelines; check what applies to you.