The interest rate of RBI Floating Rate Savings Bonds 2020 (Taxable) is not fixed. It is linked to the National Savings Certificate (NSC), a small savings program offered by the Union government. The RBI Floating Rate Savings Bonds offer an interest that is 0.35% higher than the prevailing interest on the NSC. The interest rate on Floating Rate Savings Bonds is reset every six months and due on July 1, 2024. What will be the interest on the RBI Floating Rate Savings Bonds 2020 from July? Should you invest in RBI Floating Rate Savings Bonds 2020 now? Check details.
RBI Floating Rate Savings Bonds are government-backed savings instruments that offer Indian investors a secure investment with a competitive interest rate. The interest rate is linked to the prevailing interest rate of the National Saving Certificate (NSC) with a spread of 35 basis points
Currently, the RBI Floating Rate Savings Bond offers an interest rate of 8.05%, higher than the interest rates of fixed deposits (FDs) offered by most well-known public and private sector banks. Now, retail investors can subscribe to these bonds through the RBI retail direct portal. The interest rate on these bonds is reset every six months. Do note that the interest is payable semi-annually. Who can invest, how much you can invest, how to invest, how to pay for your investment, what will be the tax rules — all your questions answered.