New Delhi. X deposits of public and private banks (Bank FD) But at present the interest is getting less than 6 percent. In such a situation, investors are looking for an option where they can get more returns than FD and also have a guarantee of safety. Bonds of such investors Reserve Bank of India (RBI Bonds) can invest money in RBI has launched floating rate savings bonds on July 1, 2020 (Floating Rate Saving Bond) was launched, whose current interest rate is 7.15 percent. Its rates are revised every half year.
The maturity period of RBI bond is 7 years. However, senior citizens get the option of pre-mature exit after 4 years, on which some deduction is made. Its interest is paid every 6 months, on which tax has to be paid according to the slab. TDS is also deducted on its return.
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NRIs cannot invest
Any Indian citizen or Hindu Indivisible Family – HUF can invest money in the bonds of the Reserve Bank. You as a guardian can also invest in this bond in the name of the minor and can also apply to buy it jointly. However, NRIs are not allowed to invest money in this bond. Investment can be started with a minimum of Rs 1,000, while there is no maximum limit.
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Investment allowed only up to 20 thousand in cash
This bond is allowed to be bought only in electronic form. If investors want, they can also buy them in cash, but its maximum limit is 20 thousand rupees. You can buy this bond from any government bank including SBI or even private banks like ICICI, IDBI, HDFC and Axis.
Its interest rate is linked to NSC
The interest rates of RBI bonds are linked to the National Savings Certificate (NSC). Whatever interest the government pays on NSC, 0.35 percent more interest is increased. Therefore, any change in the interest rates of NSC also affects the floating bonds of RBI.
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Investors also know this thing
It is also important for investors buying RBI bonds to know that this bond is not transferable. Only after the death of the investor, it can be transferred in the name of the nominee. Apart from this, trading of this bond also cannot be done in the stock market. Nor can investors take loans against these bonds from banks, financial institutions, NBFCs, etc.
Tags: investment and return, Personal finance, RBI
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