If you’re looking to invest your savings with safety and higher returns, consider RBI’s Floating Rate Savings Bonds.
These bonds offer a competitive interest rate of 8.05 percent and some unique features you should know about.
Key Features
1) Issued by the Indian Government.
2) Maturity period of seven years.
3) Provides guaranteed interest.
4) Interest rates aren’t fixed; they are linked to the National Savings Certificate (NSC) interest rate.
How Interest Works
The interest on these bonds is variable and reviewed quarterly based on NSC rates, offering 0.35 percent more interest than NSCs.
If NSC rates go up, bond returns increase, and if they decrease, bond returns decrease. Interest changes every six months.
Who Can Invest
These bonds are available to all Indian citizens, but not for NRIs. You can start with a minimum investment of Rs 1000, and there’s no maximum limit.
Investing through RBI Retail Direct
To invest, open a Bond Ledger Account (BLA) through RBI’s Retail Direct Portal. The bonds will be in electronic form and credited to your BLA.
You can even add a nominee to your bond, and payments can be made using UPI, Net Banking, and other methods.
