Business Desk 
Feb 19, 2025
The Central Directorate of National Savings (CDNS) has reduced the profit rates for Regular Income Certificates (RICs), effective February 14, 2025. The new profit rate now stands at 11.74%, down from 11.88%, impacting the monthly returns for investors.
Available in denominations ranging from Rs50,000 to Rs10 million, RICs were introduced in 1993 to provide a stable monthly income for the public.
What to expect from new Regular Income Certificate rates?
The new rate will allow an investment of Rs100,000 to earn Rs979 per month, compared to the previous Rs1,010.
It's worth noting that RICs are still Zakat-exempt despite the recent reduction. The tax on profits varies depending on the investor’s tax status. Individuals on the Active Taxpayer List (ATL) are charged a 15% withholding tax, while non-filers face a 35% tax on their earnings.
Additionally, CDNS has also revised profit rates for Short-Term Savings Certificates (STSCs) due to falling inflation. These short-term investment options, introduced in 2012, offer three-month, six-month, and one-year maturities.
Regular Income Certificate rates for February 2025
For February 2025, the revised rates are:
- Three-month certificate: 11.24% profit (Rs2,810 per Rs100,000 investment).
- Six-month certificate: 11.32% profit (Rs5,660 per Rs100,000 investment).
- One-year certificate: 11.38% profit (Rs11,380 per Rs100,000 investment).
These certificates remain a secure investment choice, as they are available to Pakistani and overseas investors, with a minimum investment of Rs10,000 and no upper limit.
