Neutral impactCommodity
RBI Floating Rate Savings Bonds: Want to buy offline? Know where to apply, documents, interest and tax rules
Mint 51 min ago·2 Sept 2026, 1:15 pm
The Reserve Bank of India (RBI) has launched a new Floating Rate Savings Bond, offering a fixed interest rate that adjusts with market conditions. Unlike traditional fixed deposits, the returns on these bonds will change every six months, providing a hedge against inflation. This makes them an attractive option for conservative investors seeking a safe, government-backed asset that can potentially offer better yields than standard savings accounts.
For retail investors, these bonds are particularly appealing because they are tax-free under Section 80C, subject to a specific limit. The interest earned is credited directly to the investor's bank account, ensuring regular cash flow. However, the process for purchasing these bonds offline is more involved than buying stocks or mutual funds, requiring applicants to visit designated receiving offices with specific documents and payment details.
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- Category: Commodity.
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