RBI Floating Rate Savings Bonds may offer 8.05% interest from July 1: Details here

RBI Floating Rate Savings Bonds: The interest rate is linked to the National Savings Certificate (NSC)- small savings scheme backed by the Union government.

Published on: Apr 10, 2024, 15:53:24 IST

By HT News Desk

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RBI Floating Rate Savings Bonds currently offer an interest rate of 8.05% per annum. But the interest rate of RBI Floating Rate Savings Bonds 2020 (Taxable) is not fixed as it is reset every six months. This is due on July 1 this year.

RBI Floating Rate Savings Bonds: NSC's interest rate is reviewed every quarter and when the interest rate of NSC goes up, interest rate of RBI Floating Rate Savings Bonds also rises. (Representational)

What is the relationship between RBI Floating Rate Savings Bonds and NSC interest rates?

What is NSC's current rate? Does this mean RBI Floating Rate Savings Bonds interest will rise?

RBI Floating Rate Savings Bonds: All you need to know

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RBI Floating Rate Savings Bonds 2020 (Taxable) are issued by the Reserve Bank of India.
They come with a lock-in period of seven years and the interest rates are reset twice in year.
Investors will get the interests semi-annually- January 1 and July 1 every year.
The interest is taxable and you can not claim any tax deduction for investing in these bonds.
There is no premature withdrawal option but senior citizens can prematurely withdraw money with a penalty after a minimum lock-in period.

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HT News Desk
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