RBI Floating Rate SAVINGS Bond 2020 (Currently 7.15%)
Zero-risk investments with RBI Bonds
Government of India has announced Floating Rate Savings Bonds, 2020 (Taxable) scheme commencing from July 01, 2020 to facilitate an excellent investment option for individual investors. This option provides higher returns than regular Fixed Deposits in a risk-free manner.
Scroll down to know more details on who can invest and the clauses applicable on the investment.
MORE ABOUT RBI BONDS 2020
Who can Invest
Investment value
Investment value
- Resident Indian, in her or his individual capacity, or in individual capacity on joint basis, or in individual capacity on any one or survivor basis, or on behalf of a minor as father/mother/legal guardian.
- A Hindu undivided family.
Investment value
Investment value
Investment value
- Minimum Invest Amount: Rs.1,000/-
- Maximum Investment Amount : No Limit
- Face Value : Rs.1000/- ( Per Bond) and in multiples thereof.
Interest Rate:
Investment value
Interest Rate:
- Currently 7.15 %, and will be reset every 6 months. The Benchmark is NSC rate + 35 bps. For eg If the National Saving Certificate rate is 6.80, this would carry the rate of 6.80 + 35 = 7.15%
- Interest Payout Dates: 1st January and 1st July
Maturity
Taxation aspect
Interest Rate:
- Lock-in Period for bond maturity - 7 Years
- Premature encashment in respect of the Bonds shall be allowed for individual investors in the age group of 60 years and above
- 60 to 70 years of age - 6 years,
- 70 to 80 years of age - 5 years,
- Age of 80 years & above - 4 years.
Taxation aspect
Taxation aspect
Taxation aspect
- Interest on the Bonds will be taxable under the Income Tax Act, 1961 as applicable according to the relevant tax status of the Bonds holder(s).
- Tax will be deducted at source while making payment of interest on the Bonds from time to time and credited to Government Account. Form 15 G and Form H options are available.
Other terms
Taxation aspect
Taxation aspect
The Bonds shall not be tradable in the secondary market and shall not be eligible as collateral for availing loans from banks, financial Institutions and non-banking financial companies.
Refer the circular on RBI site
Download the RBI circular from here
2i Wealth MFD LLP
Bangalore : 91 Springboard, 80 Feet Road, Near Sir CV Raman Hospital, Indiranagar, Bengaluru 560038. Contact : 88385 94267 Cochin : 1st Floor, Sui Palace, Chittoor Road, Behind City Hospital, Cochin 682035. Contact: 94475 59230 Kottayam: CSI Ascention Square, Near Logos Junction, 686002, Contact: 97449 54420
All information provided on this site are purely for informational purposes and based on information available on public domain. The investors are advised to use their discretion before investing. 2i Wealth MFD LLP is an AMFI Registered Mutual Fund Distributor . ARN -280761. Mutual Funds Investments are subject to Market Risk. Please Read the offer Document Carefully before Investing. Investment in Securities markets are subject to market risks, read all the related documents carefully before investing. Investments and Information provided in our Website is done based on our best knowledge. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services.
- Copyright 2iwealth @2022. All rights reserved.