FINGUIDE BUDDY

Pitampura, Delhi

RBI Floating Rate Savings Bonds, 2020 (Taxable) are government-backed investments open to resident individuals and HUFs (NRIs not eligible). Issued at par in demat form or physical form (Bond Ledger Account), the minimum investment is ₹1, 000 with no maximum limit. The bonds have a 7-year maturity and are available in non-cumulative form only. Interest is payable semi-annually on 1st January and 1st July, at a floating rate linked to the NSC rate + 0.35% (currently 8.05% p.a.). The rate resets every six months. Premature redemption is allowed only for senior citizens after specified lock-in periods with a penalty. Bonds are non-transferable, non-tradable, and not eligible as collateral for loans, but nomination facility is available. Interest is taxable with TDS, while the bonds are exempt from wealth tax. Safe, reliable, and backed by the RBI, these bonds suit investors seeking assured half-yearly income.