If yield is the only test, National Savings' Sarwa window wins: its Sarwa Islamic Savings Account showed 11.10% on the CDNS ticker dated July 18, 2026, while the big Islamic banks declared 7.04% to 7.84% for June and July. If you also test for named scholars, published pool mechanics, and digital access, the banks win everything except the rate. That is the whole comparison in two sentences; the details tell you which test is yours.
The Central Directorate of National Savings runs its Shariah-compliant products through Rafa National Savings, a separate Islamic window created under the Sarwa Islamic Savings Account Rules 2019, approved by the federal cabinet. Its products: the Sarwa Islamic Savings Account (SISA), a running account with no tenor, and Sarwa Islamic Term Accounts (SITA) in 1, 3, and 5-year tenors, sold at national savings centres.
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The rates, side by side and dated
Sarwa, per the CDNS homepage ticker dated July 18, 2026: SISA 11.10%; SITA at 11.10% (1-year), 11.50% (3-year), and 11.52% (5-year). Note the direction of travel: a Finance Division SRO effective June 10, 2026 had set SISA and 1-year SITA at 11.88%, so rates were re-notified downward twice within six weeks as SBP policy eased. At launch in 2022, SISA opened at 13.50%.
The banks, from their own monthly declarations: Meezan Rupee Savings 7.04% (July 2026); HBL Islamic savings 7.23% (June 2026); BankIslami savings pools 7.8355% (June 2026); Bank Alfalah Islamic savings 7.01% with its digital-only TDR up to 8.97% (June 2026); Allied Aitebar 6.69% standard and 8.00% for women's and senior accounts (June 2026). Term products stretch higher: Meezan's 1.5-year certificate declared 10.05% for July 2026. Even so, the government window out-paid every mainstream bank product on comparable tenors.
Why the state pays more, and what it does not show you
Sarwa's rate is an expected profit rate set administratively by the Finance Division, not a declared output of a visible Mudarabah pool. The public record has real gaps: the Shariah board members behind Rafa National Savings are not named on savings.gov.pk, and the July 2026 rate notification was published as a document containing only a scanned image. You are trusting the federal cabinet's rules and the state's credit, which is a rational thing to trust, but it is trust in an institution, not verification of a mechanism.
The banks show their machinery. Meezan publishes its 50/50 gross-income split, locks weightages three days before each month, and prints the depositor loss clause. BankIslami has archived monthly declarations since 2017. Named Shariah boards sign the paperwork at every major bank. If your standard for a halal deposit includes seeing who certified it and how profit is computed, the banks clear it and Sarwa currently does not.
Access and everyday practicality
Sarwa is a savings destination, not a bank account. You transact at national savings centres, and the products exist for ordinary resident savers, including those who cannot access Roshan Digital Accounts. There is no app-first onboarding, no debit card ecosystem, no bill payments. Bank accounts do all of that, declare profit monthly, and connect to financing, cards, and remittances. Most households need a bank account regardless; the question is only where the surplus savings sit.
Verdict: who should hold which
Hold Sarwa if you are a yield-focused saver comfortable with sovereign administrative rates: retirees and conservative households living off profit income gain roughly three to four percentage points over bank savings at July 2026 rates, on the government's credit. Use the 3-year SITA at 11.50% only for money you will genuinely not touch, and expect rates to keep tracking policy downward given the two re-notifications in mid-2026.
Hold bank deposits if verifiable Shariah mechanics, digital access, or liquidity drive you. A reasonable split for many savers: transactional and emergency money at an Islamic bank with a published pool, and a yield sleeve at Sarwa sized to what you can leave untouched. Savers who want the disclosure and a double-digit rate should also watch the new digital entrant Raqami, which declared 10.00% to 11.00% tiered savings for June 2026, closing most of Sarwa's gap with bank-grade access. Compare the field on our comparison hub.
Frequently asked questions
Is the Sarwa account actually Shariah-compliant?
It operates under the cabinet-approved Sarwa Islamic Savings Account Rules 2019 inside a dedicated Islamic window that CDNS says is guided by a Shariah board. The gap is transparency: the board members are not named on the official site and profit is an administratively set expected rate. Savers who need named scholars and published mechanics will prefer a bank.
How much more does Sarwa pay than the banks?
At mid-2026 declarations, SISA's 11.10% (ticker dated July 18, 2026) versus 7.04% to 7.84% at major Islamic banks: roughly a three to four point premium on running savings. Bank term certificates narrow it (Meezan's 1.5-year at 10.05% for July 2026), and Raqami's digital deposits at 10.00% to 11.50% nearly close it.
Can I lose money in either?
Sarwa carries the federal government's credit. Bank Mudarabah deposits legally share pool losses in proportion to investment, a clause Meezan prints plainly, though declared losses have not been the practical experience at major banks. Neither is a market-risk product like a mutual fund.
Where do I open a Sarwa account?
At national savings centres operated by CDNS across the country. There is no online opening. SISA is a running account with no tenor; SITA terms of 1, 3, and 5 years are available at the counter.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Will Sarwa rates keep falling?
They track policy. The Finance Division re-notified rates twice within six weeks of mid-2026 (11.88% effective June 10, then 11.10% on the July 18 ticker) as SBP policy eased, and bank rate histories show the same slide from the 2024 peak. Lock a SITA tenor if you want to hold a rate; the running account will move.