RBI Bonds
RBI Floating Rate Savings Bonds — sovereign-guaranteed, interest reset every six months, no upper limit. Safe, steady income.
Overview
The RBI Floating Rate Savings Bonds, 2020 (Taxable) are issued by the Reserve Bank of India and carry a sovereign guarantee — no credit risk at all. The interest rate floats, resetting every six months at 0.35% above the prevailing National Savings Certificate (NSC) rate, and is paid out half-yearly. With a 7-year tenure, a low ₹1,000 minimum and no maximum limit, they are a dependable home for the safe portion of your portfolio. Interest is taxable at your income-tax slab.
At a glance
- Sovereign guarantee
- Half-yearly payout
- No upper limit
Key benefits
Sovereign-guaranteed — zero credit risk
Floating interest reset every 6 months (NSC rate + 0.35%), paid half-yearly
₹1,000 minimum with no maximum investment limit
7-year tenure, with early-exit windows for senior citizens
Got questions? We have answers
What are RBI Floating Rate Savings Bonds?
Bonds issued by the Reserve Bank of India with a full sovereign guarantee. The interest rate floats, resetting every six months at 0.35% above the National Savings Certificate (NSC) rate, and is paid out half-yearly.
How is the interest rate decided and how often does it change?
It is linked to the NSC rate plus 0.35% and is reviewed every six months, so the half-yearly payout can move up or down at each reset.
What is the tenure and can I exit early?
The tenure is 7 years. Premature withdrawal is allowed only for senior citizens, with a minimum lock-in based on age (6 years for 60–70, 5 years for 70–80, 4 years for 80+).
How much can I invest and is the interest taxable?
The minimum is ₹1,000 with no maximum limit. Interest is fully taxable at your income-tax slab and TDS applies; there is no cumulative option — interest is paid half-yearly.
Book your Free Financial Review
Spend 30 minutes with Gaurav Soni to understand where you stand and what your money could do for you. One click and your request reaches our team — we'll call you back within a working day.
- A clear picture of your current finances
- Goal-based recommendations you can act on
- Zero pressure — advice first, products later
Get started in 30 seconds
Tap below, share a few details, and Gaurav Soni's team will call you back within one working day. No cost, no obligation.