HBL Savings By Interest Tiers

HBL Savings By Interest Tiers

HBL Bank is one of Pakistan’s largest banks serving over 20 million customers across the country. Unlike conventional peer banks, HBL offers savings and deposit products linked to interest tiers based on account balances instead of fixed rates. This encourages financial discipline among account holders while allowing the bank to earn returns by investing floats profitably.

Let’s examine major HBL savings accounts and their system of interest tiers:

HBL Conventional Savings Account

HBL Conventional Savings Account

HBL offers conventional interest-based savings accounts separately from its Islamic banking division. The conventional savings account pays out interest to account holders on half-yearly basis.

However, interest earnings are tied to two tiers based on end-of-day minimum balance maintenance over 180 days:

Tier 1: Below PKR 100,000

  • 1.75% interest on amount below PKR 100,000

Tier 2: Above PKR 100,000

  • 5.5% interest on incremental amount over PKR 100,000

By requiring a minimum balance of PKR 100,000 to enter the higher tier, HBL incentivizes financial discipline among account holders. Maintaining larger balances becomes more lucrative due to the higher 5.5% interest rate.

However, conventional savings do not suit customers seeking Shariah-compliant returns. HBL‘s Islamic banking arm provides alternatives discussed next.

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HBL Asaan Account Profit Tiers

HBL Asaan Account Profit Tiers

The HBL Asaan Current Account is an all-purpose account for customers preferring profit-based returns over interest. As an Islamic product, profits earned are linked to balance tiers:

Tier 1: Average balance up to PKR 100,000

  • Profit paid semi-annually

Tier 2: Average balance PKR 100,001 to PKR 500,000

  • Profit paid quarterly

Tier 3: Average balance PKR 500,001 to PKR 3,000,000

  • Profit paid monthly

Tier 4: Average balance over PKR 3,000,000

  • Profit paid monthly

For the first tier up to PKR 100K, profits are calculated and credited twice a year. In the second tier up to 500K, profit payment increases to a quarterly cycle. Customers crossing PKR 500,001 enjoy monthly profit payouts – encouraging maintaining higher account balances.

The tiered structure allows HBL to maximize utilization of customer floats by lending for Shariah-compliant financing options to earn higher gains. A share of this is passed on to customers according to their tier.

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HBL Premium Savings by Tiers

HBL also offers premium savings accounts for affluent individuals seeking higher returns. The HBL Premium Savings Account offers personalized banking with dedicated relationships managers and preferential pricing.

This account provides five balance-based tiers with corresponding benefits:

Tier 1: Average balance up to PKR 2 million

  • Preferential OD/financing rates

Tier 2: Average balance PKR 2 to PKR 5 million

  • Free premium debit card
  • Preferential locker rates

Tier 3: Average balance PKR 5 to PKR 15 million

  • Free Internet banking
  • Free cheque book
  • 0.1% preferential rate on car financing

Tier 4: Average balance PKR 15 to PKR 30 million

  • Free worldwide airport lounge access
  • Free credit card
  • Dedicated premium service

Tier 5: Average balance over PKR 30 million

  • Invitation to exclusive HBL client events
  • Access to express banking lounge
  • Courier service for account documents

Customers placing higher average balances get access to disproportionate privileges like lifestyle benefits, preferential pricing, and exceptional service. This incentivizes the priority customer segment to consolidate balances under HBL accounts and maximize returns.

For the bank, bulk amounts under management allow revamped services to these customers justify costs through emerging possibilities to cross-sell profitable services.

Also read: National Bank of Pakistan Savings By Interest Tiers


Across savings propositions for various customer segments, HBL Bank relies extensively on a tiered structure for promising returns. By requiring larger account balances to enter higher slabs, the system promotes financial discipline and saving habits. Expected outcomes like concentrated customer floats also enable HBL to boost lending activities through deploying Net Stable Funding Ratio (NSFR)-accretive funds profitably. This mutually benefits both account holders through improved returns as well as the bank through lower-cost funding alternatives. Thus, balance-driven tiers allow HBL to align customer incentives with bank priorities through a Pruned Shariah-compliant framework.

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