Behbood Regular Income Certificates: A Reliable Monthly Income Option

Regular Income Certificates (RICs) are one of the investment instruments offered by the Government of Pakistan through the National Savings (Central Directorate of National Savings). They are designed to provide monthly profit payments to ordinary savers over a fixed period. This makes them especially suited for people who need a steady income stream.

Key Features and Terms

• Tenure / Maturity: RICs come with a 5-year maturity period.
• Profit Payments: Investors receive profits every month, beginning from the date the certificate is issued.
• Denominations: These certificates are issued in amounts such as Rs. 50,000, Rs. 100,000, Rs. 500,000, Rs. 1,000,000, Rs. 5,000,000, and up to Rs. 10,000,000.
• Investment by General Public: Unlike some certificates restricted to special groups, RICs are open to anybody (individuals, minors, joint names).
• Zakat Exemption: Investment in RICs is exempt from Zakat deductions.
• Tax Withholding: The income generated is subject to withholding tax depending on whether the investor is a filer or a non-filer.

Latest Profit Rate (2025 Update)

In 2025, the government revised profit rates across many National Savings schemes. For Regular Income Certificates, there was a reduction in the rate. The new rate, effective from July 28, 2025, is 10.68% per annum.

Before that, in May 2025, RICs were yielding 11.52% per annum, after a cut from prior levels.

At 10.68% per annum, for example, an investment of Rs. 100,000 would yield approximately Rs. 890 per month in profit.

Because of changes in fiscal policy and interest rate environment, profit rates on all savings instruments are being adjusted periodically.

Why Choose Regular Income Certificates?

1. Steady Monthly Income: Ideal for those who want a predictable income every month.
2. Government Guarantee: It is backed by the government, making it a low-risk option.
3. Open to All: Available for general public investment, not restricted to special categories.
4. Long-Term Safety: The fixed 5-year term provides security from market fluctuations.

How to Apply / Purchase

To invest in RICs, you go to any National Savings Center or authorized branch. You fill out the standard application (form SC-1), submit a copy of your CNIC (or other identity document), choose the amount (according to the allowed denominations), and pay via cash, cheque, or pay order. Once processed, you will start receiving your monthly profit.

Risks & Considerations

• Interest Fluctuations: If market interest rates rise sharply, the fixed yield may become less competitive.
• Tax Impact: Withholding taxes reduce your net returns. Non-filers may face higher tax rates.
• Liquidity: Though the term is five years, early encashment may incur penalties or may not always be allowed under favorable terms.
• Policy Changes: Since the rates are set by the government, they may be revised downward in the future, affecting new investments.

Conclusion

Regular Income Certificates remain a popular and well-regarded choice for people who prefer fixed monthly returns, backed by the government, and want a safe place to invest for the mid-term (5 years). However, given the rate cut in 2025 to 10.68%, it is important to compare with other savings options and consider tax impact before investing.