RBI keeps interest rate on floating rate savings bonds unchanged at 8.05% for January-June 2025
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This rate is unchanged from the previous half-year.
The interest rate on these bonds is adjusted every six months based on changes in the NSC rate. If the NSC rate rises, the interest rate on the RBI Floating Rate Savings Bond will also increase, and if the NSC rate falls, the bond’s interest rate will decrease accordingly.
The interest on these bonds is payable twice a year, on January 1 and July 1.
For the current period, the interest will be paid on July 1, 2025.
Interest earned on the bonds is taxable, and investors are not eligible for any tax deductions for investing in these bonds. Tax Deducted at Source (TDS) will apply if the annual interest exceeds ₹10,000.
The minimum investment amount for the RBI Floating Rate Savings Bond is ₹1,000, with subsequent investments in multiples of ₹1,000. There is no maximum investment limit.
The bond comes with a lock-in period of seven years, and there is no option for premature withdrawal.
However, senior citizens have the option to withdraw early, subject to a penalty.
First Published: Jan 1, 2025 5:10 PM IST
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