Investors seeking fixed-income alternatives that outperform standard bank fixed deposits (FDs) without exposure to stock market volatility can consider the Reserve Bank of India’s (RBI) Floating Rate Savings Bonds. Backed by the Government of India, this investment vehicle offers absolute capital safety alongside periodic yield adjustments. Key Features & Rules Interest Rate Calculation: The coupon rate is pegged directly to the National Savings Certificate (NSC) yield, offering NSC rate + 0.35%. Rates are reset semi-annually on January 1 and July 1. Interest is paid bi-annually directly into the investor’s bank account (cumulative/reinvestment options are not available). Eligibility: Open exclusively to resident Indian citizens and Hindu Undivided Families (HUFs). Non-Resident Indians (NRIs) and foreign nationals are ineligible. Investment Limits: Minimum investment starts at ₹1,000, with no upper ceiling on the total amount invested. Tenure & Lock-in Period: The standard maturity tenure is 7 years. Early exit options are available exclusively for senior citizens based on age tiers:60 to 70 years: Pre-mature withdrawal allowed after 6 years.70 to 80 years: Pre-mature withdrawal allowed after 5 years. Above 80 years: Pre-mature withdrawal allowed after 4 years. Taxation: Interest earnings are fully taxable according to the investor’s applicable Income Tax slab. Tax Deducted at Source (TDS) applies if annual interest exceeds prescribed threshold limits. Post navigation EPFO Launches Special Enrolment Campaign to Extend PF and Pension Benefits
