RBI Floating Rate Savings Bonds 2020 (Taxable)
The salient features of the Bond
- Floating Rate: The coupon/interest of the bond would be reset half yearly starting with Jan 1st, 2021 and thereafter every July 1st & Jan 1st.The coupon rate for first coupon period, payable on January 1, 2021 is fixed at 7.15%.
Option: The interest on the bonds will be payable at half yearly intervals on Jan 1st and July 1st every year. No cumulative option available.
- Period: 7 years. Premature encashment allowed for Individuals with Lock in period as Age group
- 60 - 70 years - 6 years from the date of issue
- 70 - 80 years - 5 years from the date of issue
- 80 years & above - 4 years from the date of issue with 50% of interest due for last six months to be recovered Bonds.
- Eligibility for investment - Individual and Hindu Undivided Family
- Minimum investment `1000 (FV), in multiples of `1000/- and no Max limit
- Interest on bonds taxable under I T Act 1961
- Separate Nomination can be made for each investment
- Bonds shall not be transferable & not tradable in Secondary market
- Bonds not eligible as Collateral for availing loans from Banks/ Financial Institutions & Non Banking Financial Companies.
- Cheque in favour of HDFC BANK - RBI FLOATING RATE SAVINGS BONDS 2020