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Features of RBI Floating Rate Savings Bond

100% Risk-Free Investment

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Interest payable half-yearly in Jan & Jul each year

Pay less buy more

Interest rate set at 8.05% till Dec 2023

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Minimum Investment - Rs. 1000 (and in multiples thereof) Maximum Investment - No Limit

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Floating Rate of Interest. Is subject to change in Jan & Jul each year

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Maturity is 7 years from Investment date. Premature withdrawal for Senior Citizens

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Interest Rate is linked to National Savings Certificate (NSC)

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Not Tradable & not Transferable

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Bond will always pay 0.35% higher than NSC rate

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Nomination Facility Available

SPECIFIC CONDITIONS ON PREMATURE WITHDRAWAL FOR SENIOR CITIZENS

Minimum lock-in period from the date of issue as per Investor age bracket :

Age Bracket Lock-in Period
60 to 70 years 60 to 70 years 6 years
60 to 70 years 70 to 80 years 5 years
60 to 70 years Age of 80 years & above 4 years

Podcast

Sovereign Gold Bond

Podcast on RBI Floating Rates Savings Bond

FAQs

What is the minimum and maximum investment limit in the Floating Rate Savings Bonds (Taxable)?
The Bonds are issued for a minimum amount of Rs. 1000/- (face value) and in multiples thereof. There is no maximum limit for investment in Bonds.
The tenure of the bond is 7 years from the date of issue. No interest will accrue after the maturity of the bond. Premature redemption facility is allowed for investors in the age group of 60 years and above as per RBI’s Notification.
Interest is payable semi-annually from the date of issue of bonds, up to 30th June / 31st December as the case may be, and thereafter half-yearly for period ending 30th June and 31st December on 1st July and 1st January respectively.
The interest rate of the bond, would be re-set half yearly starting with Jan 1st, 2021 and thereafter every July 1st and will be liked with the prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate. All future coupon would reset based on the fixation of rate of interest of NSC on Jan 01 and July 01.
The interest income from the bonds is taxable. TDS (Tax Deducted at Source) is deducted at the time of interest payment as per the prevailing IT rules.
Yes, a nomination facility is available.
Yes, a nomination facility is available.
No, these bonds are not transferable.
The Bonds are not eligible as collateral for availing loans from Banks, Financial Institutions & Non-Banking Companies.

Steps to Apply Online

  • Login Icon Login to your ICICIdirect.com account
  • Go to Mutual Funds Go to FD/Bonds & Click on ‘Go Issuances’
  • Select an ELSS Fund Select ‘Floating Rate Savings Bonds’
  • investment details Apply & complete Order in few clicks