{"id":11857,"date":"2020-06-27T16:39:56","date_gmt":"2020-06-27T11:09:56","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=11857"},"modified":"2020-06-28T20:31:40","modified_gmt":"2020-06-28T15:01:40","slug":"floating-rate-savings-bonds","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/floating-rate-savings-bonds\/","title":{"rendered":"RBI Floating Rate Savings Bonds 2020 Review"},"content":{"rendered":"\n<p>The Government of India has announced the launch of Floating Rate Savings Bonds, 2020 (Taxable) or FRSB 2020 on July 1, 2020. This is the replacement of recently <a href=\"https:\/\/www.apnaplan.com\/government-savings-bonds-invest\/\" class=\"rank-math-link\">discontinued RBI 7.75% taxable 2018 bonds<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">RBI Floating Rate Savings Bonds 2020 Features<\/h2>\n\n\n\n<p class=\"has-background has-pale-cyan-blue-background-color\"><strong>Rate of Interest:<\/strong> 7.15% (would be reset twice every year on January 1st and July 1st). It would be 0.35% higher than prevailing NSC interest rate.<br><strong>Investment Tenure:<\/strong> 7 years<br><strong>Minimum Investment Limit:<\/strong> Rs 1,000<br><strong>Maximum Investment Limit:<\/strong> No Limit<br><strong>Is Interest Taxable:<\/strong> Yes. TDS is also applicable<\/p>\n\n\n\n<p class=\"has-background has-pale-cyan-blue-background-color\">A quick calculation would tell you <strong>if you invest Rs 1 Lakh in Floating Savings Bond, you can expect to get interest of Rs 3,575 every 6 months (on January 1 and July 1) <\/strong>assuming the interest rate of 7.15%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">RBI Floating Rate Savings Bonds 2020 Review<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">What I liked<\/h3>\n\n\n\n<ul><li><strong>100% Safe:<\/strong> As these bonds are issued by RBI on behalf of Government of India they are safe from credit default.<\/li><li><strong>High Interest Rate: <\/strong>The interest rates offered are respectable and <a href=\"https:\/\/www.apnaplan.com\/highest-interest-rate-on-bank-fixed-deposits-fd\/\" class=\"rank-math-link\">higher than most big banks.<\/a><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">What I did not like<\/h3>\n\n\n\n<ul><li><strong>No Cumulative option:<\/strong> The interest would be paid half-yearly and there is no cumulative option. Hence it does not suit someone who wants to invest for long term.<\/li><li><strong>Floating Interest Rate: <\/strong>This can be risky for people who fully depend on these bonds for their regular income. As the interest rate is floating, the payment made may vary every time. This makes things bit unpredictable.<\/li><li><strong>Non-tradable\/Restricted Premature withdrawal: <\/strong>This may be a problem for some emergency situations where you have investment but cannot access.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-57e94a47\"><h4 class=\"uagb-notice-title\"><strong>Best Fixed Deposit in Banks<\/strong><\/h4><div class=\"uagb-notice-text\"><p>Fixed Deposit with Banks is one of the most popular and convenient options for regular income. To help you choose the best, we <a href=\"http:\/\/www.apnaplan.com\/senior-citizens-savings-scheme\/\" class=\"rank-math-link\">compare the interest rates on fixed deposit across all major banks<\/a> in India every month. This may prove to be quite handy for you.<\/p><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">How can you Buy RBI Floating Rate Savings Bonds?<\/h2>\n\n\n\n<p>You can buy these bonds online or physically through following banks:<\/p>\n\n\n\n<ul><li><strong>Nationalised Banks:<\/strong><ol><li>State Bank of India<\/li><li>Bank of Baroda (Including Vijaya Bank and Dena Bank)<\/li><li>Bank of IndiaBank of Maharashtra Canara Bank (Including Syndicate Bank)<\/li><li>Central Bank of India<\/li><li>Indian Bank (Including Allahabad Bank)<\/li><li>Indian Overseas Bank<\/li><li>Punjab National Bank (including Oriental Bank of Commerce and United Bank of India)<\/li><li>Punjab &amp; Sind Bank<\/li><li>Union Bank of India (including Andhra Bank and Corporation Bank)<\/li><li>UCO Bank<\/li><\/ol><\/li><li><strong>Private Banks:<\/strong><ol><li>HDFC Bank Ltd<\/li><li>ICICI Bank Ltd<\/li><li>IDBI Bank Ltd<\/li><li>Axis Bank Ltd<\/li><\/ol><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review.jpg\" alt=\"RBI Floating Rate Savings Bonds 2020\" class=\"wp-image-11858\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review.jpg 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review-300x150.jpg 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review-768x384.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><strong>RBI Floating Rate Savings Bonds 2020 &#8211; Review<\/strong><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">RBI Floating Rate Savings Bonds 2020 FAQs<\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1593248586168\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">\u2705Who can Invest in RBI Floating Rate Savings Bonds 2020?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Following can invest in Floating Rate Savings Bonds 2020<br \/> &#8211; Any individual resident in India either in own name or jointly<br \/> &#8211; On behalf of minors by their parents\/legal guardian<br \/> &#8211; HUFs (Hindu Undivided Family)<br \/> &#8211; However, NRIs cannot invest in these bonds. In case the person invested in FRSB 2020 becomes NRI subsequently, he\/she can retain the bond till maturity.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1593248658890\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">\u2705Is there limit on purchase of Floating Rate Savings Bonds 2020?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The minimum investment limit is Rs 1,000. There is No maximum limit on investment in these Floating Rate Savings Bonds 2020 bonds.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1593248981292\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">\u2705What is the interest rate on RBI Floating Rate Savings Bonds 2020?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The present interest rate for the bonds are 7.15%. The interest rate would be reset every six months on January 1 and July 1 every year. <br \/>The interest rate is benchmarked with NSC (national Saving Certificate). The interest rate for FRSB would be 0.35% above prevailing NSC rates. As the interest rate for NSC is 6.8% right now, the interest rate for FRSB would be 7.15% (6.8% + 0.35%).<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1593249024680\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">\u2705When are interest Paid on Floating Rate Savings Bonds 2020?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The interest would be paid every 6 months on January 1 and July 1. There is NO cumulative option as of now.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1593249040673\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">\u2705What is the Investment tenure for the FRSB 2020 bonds?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The FRSB 2020 bonds would have tenure of 7 years from the date of issue.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1593249060574\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">\u2705Is Premature redemption allowed?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Premature redemption is allowed for specified categories of senior citizens as per following rules:<br \/>&#8211; For person between 60 to 70 years of age, premature redemption can be done after 6 years.<br \/>&#8211; For person between 70 to 80 years age, this period is 5 years<br \/>&#8211; For person above 80 years of age the redemption can be done after 4 years.<br \/>For premature redemption, the person has to submit their age proof document to the respective bank.<br \/>In case of joint holders, the eligibility would be based on person with maximum age.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1593249061589\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">\u2705Is Floating Rate Savings Bonds 2020 Taxable?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, the interest paid is fully taxable as per your income tax slab. Tax would be deducted at source as per applicable rules until a declaration is made stating that you are eligible for NO TDS.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1593249127152\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">\u2705Can these bonds be transferred or traded?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>These bonds cannot be transferred to anyone. The only exception being to the nominee\/legal heir on death of bond holder. <br \/>As <a href=\"https:\/\/rbidocs.rbi.org.in\/rdocs\/content\/pdfs\/GOI26062020.pdf\" class=\"rank-math-link\" target=\"_blank\" rel=\"noopener\">FRSB 2020<\/a> bonds are not transferable, they would not be traded in secondary market or stock exchanges.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1593249172674\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">\u2705Can I take loan against these bonds?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, FRSB bonds are not eligible to act as collateral for borrowing.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-b4a79ddc\"><h4 class=\"uagb-notice-title\"><strong>How to generate Regular Monthly Income?<\/strong><\/h4><div class=\"uagb-notice-text\"><p>There can be several situations when we <strong>look for regular income<\/strong>. This is especially true for people after retirement\u00a0without any pension. Also there would be new entrepreneurs who need regular income until their start-up stabilises. We tell you\u00a0<strong><a href=\"https:\/\/www.apnaplan.com\/regular-income-investment\/\" class=\"rank-math-link\">13 investments which can generate regular income<\/a><\/strong> for you along with their pros and cons.<\/p><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Should you invest in RBI Floating Rate Savings Bonds 2020?<\/h2>\n\n\n\n<p class=\"has-background has-light-green-cyan-background-color\"><strong>The RBI Floating Rate Savings Bonds 2020 bonds are suited for people who need regular income. <\/strong>However, keep in mind due to floating interest rate your income would vary every time. Also keep in mind the lock-in criteria \u2013 you may not be able to access this money for 7 years. Senior citizens should first exhaust their <a href=\"http:\/\/www.apnaplan.com\/senior-citizens-savings-scheme\/\" class=\"rank-math-link\">Senior Citizen&#8217;s Saving Scheme<\/a> of Rs 15 lakhs before exploring this.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>RBI Floating Rate Savings Bonds 2020 offers 7.15% interest. Know about who can invest, how you can buy, the pros &#038; cons and if it&#8217;s suited for you<\/p>\n","protected":false},"author":1,"featured_media":11858,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[30,31,3013],"tags":[3968,3966,3967,343],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review.jpg",1024,512,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review-150x150.jpg",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review-300x150.jpg",300,150,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review-768x384.jpg",768,384,true],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review.jpg",1024,512,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review.jpg",1024,512,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review.jpg",1024,512,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/06\/RBI-Floating-Rate-Savings-Bonds-2020-Review-120x120.jpg",120,120,true]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"RBI Floating Rate Savings Bonds 2020 offers 7.15% interest. Know about who can invest, how you can buy, the pros & cons and if it's suited for you","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/11857"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=11857"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/11857\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/11858"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=11857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=11857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=11857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}