Face Value | Rs. 5,000/- per bond | |||
Minimum Application | Rs. 5,000/- (i.e. 1 Bond) | |||
Issue Schedule | Issue Open Date : December 19,2011
Issue Close Date : February 10, 2012 |
|||
Options for Subscription | 1 | 2 | 3 | 4 |
Frequency of Interest Payment | Cumulative | Annual | Cumulative | Annual |
Coupon (% p.a.) | 8.95 % p.a. (Annual compounding) | 8.95 % p.a. | 9.15 % p.a. (Annual compounding) | 9.15 % p.a. |
Maturity Amount | Rs. 5,000 | Rs. 11,305 | Rs. 5,000 | Rs. 17,596 |
Tenor | 10 years | 10 years | 15 years | 15 years |
Buyback option | At the end of 5 yrs+ 1 day | At the end of 5 yrs+ 1 day | At the end of 7 yrs+ 1 day | At the end of 7 yrs+ 1 day |
Buyback Date | 16 February 2017 | 16 February 2017 | 16 February 2019 | 16 February 2019 |
Maturity Amount (5 Yrs Buyback) | Rs. 7,677 | Rs. 5,000 | NA | NA |
Maturity Amount (7 Yrs Buyback) | NA | NA | Rs. 9,231 | Rs. 5,000 |
Lock-in period | 5 years from the deemed date of Allotment | |||
Issuance & Trading | Bonds shall be issued both in dematerialised form and physical form. However, trading allowed only in dematerialised mode after the expiry of Lock-in Period of 5 years |
Should you invest in REC Infrastructure bond 2011?
Rate of interest for PPF is 8.6% while in REC Bond you can lock-in your investment for 15 years at 9.15% interest. I think its the right time to invest in REC Infrastructure bonds.
Your returns would depend on the tax bracket you are. For details on the same Click here.
I think its a decent return and its recommended to lock-in in such tax saving instruments at this high interest rate period.
Some significant points about investing in REC Infrastructure Bonds:
I suggest everyone in the higher tax bracket to subscribe to the Infrastructure bonds. You may subscribe to this REC bond or wait for other institutions to issue these kinds of bonds. But by the end of this financial year you must opt to save tax on additional Rs 20,000!
Everyone hates paying taxes and always are on lookout for Options to Save Tax. However…
Are you worried and confused about Lien amount in SBI? Well you are not alone.…
Get details of latest Sovereign Gold Bond Price, Issue details, taxation and how to invest.…
Download the Excel based Income Tax Calculator India for FY 2020-21 (AY 2021-22). This compares…
Piramal Capital & Housing Finance, has come out with Piramal Capital & Housing Finance Ltd…
IIFL Home Loan, the Housing Finance company from IIFL Group has come out with IIFL…