The Central Directorate of National Savings (CDNS) has revised the profit rates for Regular Income Certificates (RICs) effective February 14, 2025.
CDNS was established in 1993, and RICs are intended to provide a stable monthly income and cater to the financial needs of the general populace.
RICs are issued in various denominations, ranging from Rs50,000 to Rs10,000,000. The revised profit rate has been set at 11.74 per cent, a slight decrease from the previous 11.88 per cent. This adjustment lowers the monthly payout for every Rs100,000 invested from Rs1,010 to Rs979.
Despite this reduction, RICs remain exempt from Zakat, maintaining their appeal as a secure investment option. The taxation on earnings from these certificates varies with the investor’s tax status. Active taxpayers listed in the Active Taxpayer List (ATL) are subject to a withholding tax of 15 per cent, while non-filers not on the ATL face a higher rate of 35 per cent.
Additionally, the CDNS adjusted the profit rates on Short Term Savings Certificates (STSCs) starting February 2025, reflecting the country’s declining inflation rates. Introduced in 2012, STSCs aim to meet short-term financial goals with three-month, six-month, and one-year maturities.
The net profit rates for STSCs are as follows:
- Three-month maturity: The profit rate is now 11.24 percent, down from 12.76 percent, yielding Rs2,810 on an investment of Rs100,000.
- Six-month maturity: The profit rate remains at 11.32 percent, previously 12.74 percent, providing a return of Rs5,660 for every Rs100,000 invested.
- One-year maturity: The profit rate has been adjusted to 11.38 percent from 12.76 percent, resulting in a return of Rs11,380 on the same investment amount.
The certificates are accessible to both residents and overseas Pakistanis. A minimum investment of Rs10,000 is required, but there is no maximum limit. Investors can also pledge these certificates as security.
