Thinking of boosting your savings? Consider investing rather than just hoarding. Investment brings returns, ensuring your money grows.
But with various options available, it’s crucial to know where your money can earn the best interest.
While Fixed Deposits (FDs) are popular, RBI Bonds might be a smarter choice, offering a secure investment with a higher interest rate—currently at 8.5%.
Safe Investment for All
Known as the Government of India Savings Bond, RBI Bonds are a floating-rate savings bond accessible to any Indian citizen.
Invest individually, on behalf of a minor, or jointly—the flexibility is yours.
Dynamic Interest Rates
Unlike FDs, RBI Bonds offer dynamic interest rates, reviewed every six months. The interest is determined based on the National Savings Certificate (NSC), providing an extra 35 basis points compared to NSC. In the current period, NSC offers 7.7% interest, while RBI Bonds provide a higher 8.5%.
Locked for Growth
Invest in RBI Bonds with a minimum of Rs 1000, in multiples thereafter. The lock-in period is 7 years, restricting withdrawals during this time.
However, senior citizens can opt for a Premature Exit, though with some deductions.
Easy Access, Tax Implications
Purchase RBI Bonds from government or private banks like State Bank, ICICI, IDBI, HDFC, or Axis.
Interest is paid semi-annually but is taxable. Be prepared to pay taxes according to your income slab. TDS applies when interest exceeds Rs 10,000 in a financial year.
Plan Your Future
Understand the non-transferable nature of RBI Bonds; only nominees can inherit after the investor’s demise. Invest wisely for a secure financial future.