RBI Floating Rate Saving Bond
What is RBI Floating Rate Saving Bond ?
The RBI Floating Rate Saving Bond is a government-issued bond with an interest rate that fluctuates based on prevailing market rates, typically linked to the National Saving Certificate (NSC). It has a 7-year tenure and offers a secure investment option with periodic interest payouts, ideal for risk-averse investors.
How can a person invest in RBI Floating Rate Saving Bond ?
To invest in RBI Floating Rate Saving Bonds, visit a designated bank or post office. Fill out the application form, provide necessary documents (ID proof, address proof), and deposit the investment amount. The bond certificate will be issued, and interest payments will be credited to your bank account periodically.
What is the process of investing in RBI Floating Rate Saving Bond ?
Process of Investing in RBI Floating Rate Saving Bond:
1. Eligibility: Ensure you’re an Indian resident.
2. Visit: Go to a designated bank or post office.
3. Application: Fill out the required form.
4. Documents: Submit ID and address proofs.
5. Payment: Deposit the investment amount.
6. Bond Issuance: Receive the bond certificate.
7. Interest: Earn interest credited to your bank account.
Benefits of investing in RBI Floating Rate Saving Bond:
Benefits of Investing in RBI Floating Rate Saving Bond:
1. Government-Backed Security: Low-risk investment with sovereign guarantee.
2. Floating Interest Rate: Adjusts with market rates, offering potentially higher returns.
3. Periodic Interest Payouts: Interest credited every six months.
4. Tax Benefits: Interest is taxable, but no TDS for residents.
5. Long-Term Investment: 7-year tenure ensures stable growth.