RBI Bond- If you want to become rich immediately, then invest in this bond of RBI, know its complete information
Life is uncertain and anything can happen here at any time if you are a working person, then you should invest a part of your earnings to secure your future, usually investing in bank fixed deposits (FDs) for safe returns, then you may miss out on better opportunities.
Have you heard about the special bond of the Reserve Bank of India (RBI) which gives higher returns than FDs of major banks? Higher returns with RBI's Floating Rate Savings Bonds RBI's Floating Rate Savings Bonds (FRSB) offer a safe investment option, which is currently getting more than 8% return. This rate is higher than the interest offered by many major government and private bank FDs.
Key features of RBI's Floating Rate Savings Bonds Interest Rate: The interest rate of the bond is linked to the National Savings Certificate (NSC) rate, which is determined by the Government of India every quarter. It always offers 0.35% more interest than the NSC rate. Currently, this bond is getting 8.05% interest, while the NSC interest rate for this quarter is 7.7%.
Interest Review: If NSC rates increase, the bond's interest rate will also increase accordingly, and vice versa.
Payment Schedule: Interest is credited to the investor's account semi-annually, on January 1 and July 1 each year.
Lock-in Period: These bonds come with a lock-in period of seven years. There is no premature withdrawal option for the general public, but senior citizens can redeem the bonds after 5 or 6 years with a penalty.
Safety: Investment in these bonds is safe, free from market fluctuations, and backed by the RBI.
Return Comparison: RBI Bonds vs Bank FDs and Post Office Schemes
Bank FDs: Currently, 5-year FDs offer up to 6.5% interest from SBI and up to 7% from HDFC and ICICI Bank.
Post Office Savings Scheme: NSC offers 7.7%, Post Office Time Deposit 7.5%, and Post Office Monthly Income Scheme Account 7.4%.
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