The RBI Floating Rate Savings Bonds are a simple, low-risk investment option that is perfect for those looking for a hassle-free way to grow their money. With attractive RBI Floating Rate Bond interest rates and an extended maturity period, these bonds allow you to grow money over time. Plus, you can start investing with as little as ₹1,000 and increase the investment amount in multiples of ₹1,000. It must be noted that interest earned on these bonds is subject to taxation.
What are Floating Rate Savings Bonds (FRSB)?
Floating Rate Savings Bonds are debt securities issued by the Reserve Bank of India, offering investors a secure way to grow their savings with variable interest rates. These bonds provide a reliable investment avenue backed by the government, making them an extremely low-risk option for conservative investors. RBI floating rate bonds feature adjustable interest rates that change periodically in response to benchmark rates, thereby protecting your returns against inflation. Select investment plans that align with your financial goals, featuring high interest rates, flexible investment amounts, and extended maturity periods.
Visit any Axis Bank branch to purchase RBI floating rate savings bonds with expert guidance from banking professionals who can assist with documentation and account setup.
Enjoy competitive returns that typically exceed standard fixed deposits, with rates that adjust to market conditions, ensuring your investment keeps pace with the economy.
Start with as little as ₹1,000 with no upper limit, making FRBS bonds accessible to investors with varying financial capacities and investment goals.
These bonds come with a 7-year lock-in period, which is ideal for long-term financial planning and wealth accumulation strategies.
Start with as little as ₹1,000 with no upper limit, making FRBS bonds accessible to investors with varying financial capacities and investment goals.
These RBI floating rate bonds are non-transferable but remain exclusively in your name throughout the investment period, providing complete ownership security.
Indian residents and Hindu Undivided Families (HUFs), are eligible to invest in Floating Rate Savings Bonds. NRIs are not eligible to purchase these bonds.
You can invest in RBI FRSBs if you meet the following criteria:
However, a Non-Resident Indian (NRI) cannot invest in RBI FRSBs in India.
To invest in RBI FRSBs you need to have the following documents:
Advantages of RBI Floating Rate Savings Bonds
These Savings Bonds offer exceptional security with sovereign backing, inflation protection through floating rates, and simplified investment procedures with no complex paperwork.
The interest earned on RBI Savings Bonds is taxable under the Income Tax Act of 1961.
Before buying Floating Rate Savings Bonds, here are some key things to know about them:
You can invest in RBI Floating Rate Savings Bonds via Axis Bank Internet Banking , Axis Mobile App or by simply using your registered mobile number
Apply through authorised banks, such as Axis Bank, with valid identity proof, address proof, and a cancelled cheque. Online applications are also accepted through net banking platforms.
Visit the Axis Bank Internet Banking page.
Log in to your account & Select “Investments”
Click on “Savings Bonds”.
Enter the investment details, including the investment amount and bank account number.
Add a nominee.
Mark the T&C checkbox and review the provided details.
Click on “Confirm”.
Verify the OTP received on your registered mobile number to complete the application process.
Apply through authorised banks, such as Axis Bank, with valid identity proof, address proof, and a cancelled cheque. Online applications are also accepted through net banking platforms.
Open the Axis Bank Mobile Banking app on your smartphone.
Log in to your account.
Select "Investments" Click on RBI Floating Rate savings Bond.
Enter the required investment details, including the investment amount and bank account.
Add a nominee.
Mark the T&C checkbox and review the provided detail.
Click on Proceed.
Verify the OTP received on your registered mobile number to complete the process.
Premature withdrawal is allowed for senior citizens in RBI Floating Rate Savings Bond as per the below slab:
Please Note: A penalty of 50% of the interest due for the last six months may be applicable upon premature withdrawal.
There are many reasons to invest in RBI FRSBs. For one, you can benefit from a high interest rate – the interest on such bonds is payable on January 01 and July 01 each year and the payable interest is linked to the current National Savings Certificates (NSC) interest rates. FRSBs pay 35 basis points more than the NSC rates. Since the bonds have a maturity period of 7 years, you can invest in it for a long-term period.
Indian citizens and Hindu Undivided Families (HUFs), are eligible to invest, while Non-Resident Indians (NRIs) and foreign entities are not.
No, RBI floating rate savings bonds are exclusively available to resident Indians. NRIs who acquire Indian residency status are eligible to invest, but those residing outside India remain ineligible, even if they hold Indian citizenship.
RBI FRSBs have a lock-in period of 7 years, after which they mature. For senior citizens, the lock-in period is lower. It is 6 years for investors between 60-70 years of age, 5 years for those in the age group of 70-80 years and 4 years for investors above 80 years of age. In case the investor is a senior citizen and wants to make an early withdrawal, a penalty will be charged.
Interest income is fully taxable as per your income tax slab rate, with no special tax benefits.
Interest is credited semi-annually on January 1st and July 1st directly to your linked bank account.
You'll need to provide identity proof, address proof, a PAN card, and banking details, along with a cancelled cheque.
No, RBI floating rate savings bonds are exclusively available to resident Indians. NRIs who acquire Indian residency status are eligible to invest, but those residing outside India remain ineligible, even if they hold Indian citizenship.
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