{"id":7430,"date":"2021-09-14T11:48:45","date_gmt":"2021-09-14T11:48:45","guid":{"rendered":"https:\/\/kredx.com\/blog\/?p=7430"},"modified":"2023-10-26T05:51:03","modified_gmt":"2023-10-26T05:51:03","slug":"know-about-rbis-floating-rate-savings-bonds-for-july-december-2021","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/know-about-rbis-floating-rate-savings-bonds-for-july-december-2021\/","title":{"rendered":"Know About RBI\u2019s Floating Rate Savings Bonds For July-December 2021"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"7430\" class=\"elementor elementor-7430\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2c1a1a5c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2c1a1a5c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3ce9fdb\" data-id=\"3ce9fdb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-73cecfbc elementor-widget elementor-widget-text-editor\" data-id=\"73cecfbc\" data-element_type=\"widget\" data-settings=\"{&quot;ekit_we_effect_on&quot;:&quot;none&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The Indian Government issues the Reserve Bank of India&#8217;s <\/span><b>Floating Rate Savings Bonds<\/b><span style=\"font-weight: 400;\">. The subscription for Floating Rate Savings Bonds 2021 was made available on 01 July 2021. As an investor, you can buy RBI\u2019s <\/span><b>Floating Rate Savings Bonds 2021<\/b><span style=\"font-weight: 400;\">\u00a0from private or public sector lenders.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">However, the interest rate on these <a href=\"https:\/\/www.kredx.com\/blog\/7-basic-things-to-know-about-bonds\/\">bonds<\/a> is subject to change every 6 months. In July 2022, the Reserve Bank of India declared the interest rate on its Floating Rate Savings Bond from July 2022 to December 2021.\u00a0 The said interest rate is set at\u00a0 7.15%(6.80 percent+0.35 percent).<\/span><\/p><p><i><span style=\"font-weight: 400;\">On that note, let us uncover more about this bond below.<\/span><\/i><\/p><h2><b>What Is The Interest Rate On Floating Rate Savings Bond 2021?<\/b><\/h2><p><span style=\"font-weight: 400;\">The interest rate on this bond remains unchanged from the month of July to December in a calendar year. For instance, this year, the interest will remain the same for the period between 01 July and 31 December 2022, and due on 01 January 2023. Notably, the prevailing interest is payable every 6 months, without the availability of a cumulative option.\u00a0<\/span><\/p><h2><b>Floating Rate Savings Bond 2021: Everything You Need To Know<\/b><\/h2><p><span style=\"font-weight: 400;\">The ins and outs of <\/span><b>Floating Rate Savings Bond 2021<\/b><span style=\"font-weight: 400;\">\u00a0are highlighted below:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investors can begin investing with an initial contribution of Rs. 1,000. This contribution does not have any upper limit.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The interest rates on these bonds may fluctuate throughout their tenure. Fluctuating interest rates ensure that investors earn returns depending on the interest rates prevailing in the market.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest payouts from <\/span><b>Floating Rate Savings Bond<\/b><span style=\"font-weight: 400;\"> take place every year in January and July.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These bonds do not offer any benefits to their investors under the Income Tax Act. Therefore, interests on the bonds are fully taxable as per an investor\u2019s tax bracket. Also, investors are liable to pay TDS on his\/her earned interest.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest rates on these bonds are tweaked every 6 months. The prevailing rate of interest is higher than that of other <a href=\"https:\/\/www.kredx.com\/investment\/invoice-discounting\/short-term-investment\">investment<\/a> vehicles, such as fixed deposits with banks, NSC, Public Provident Fund, and several other small savings schemes in India.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These bonds come with a tenure of 7 years. Although these have a tenure of 7 years, premature withdrawals are available for individual investors. However, investors are subject to a lock-in period based on their age:<\/span><\/li><\/ul><table><tbody><tr><td><b>Age Bracket Of An Individual Investor<\/b><\/td><td><b>Lock-In Period From the Issuing Date<\/b><\/td><\/tr><tr><td><span style=\"font-weight: 400;\">80 years of age or above<\/span><\/td><td><span style=\"font-weight: 400;\">4 years<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400;\">Aged between 70 to 80 years\u00a0<\/span><\/td><td><span style=\"font-weight: 400;\">5 years<\/span><\/td><\/tr><tr><td><span style=\"font-weight: 400;\">From 60 to 70 years of age<\/span><\/td><td><span style=\"font-weight: 400;\">6 years<\/span><\/td><\/tr><\/tbody><\/table><h2><b>Why Should You Invest In Floating Rate Savings Bond 2021?<\/b><\/h2><p><span style=\"font-weight: 400;\">As they are issued by the Indian Government, these bonds are considered a secure and creditworthy investment instrument. Therefore, <\/span><b>Floating Rate Savings Bonds<\/b><span style=\"font-weight: 400;\"> offer a safer choice of investment for risk-averse investors. Additionally, these bonds are suitable for individuals who wish to diversify their investment portfolio with a <a href=\"https:\/\/www.kredx.com\/investment\/invoice-discounting\/high-net-worth-individual-in-India\">risk-free investment<\/a>.<\/span><\/p><p><span style=\"font-weight: 400;\">That said, one must consider a few factors before investing in these bonds. First and foremost, the key point to bear in mind is taxation. The interest paid gets added to an investor\u2019s taxable income and taxed according to his\/her income slab.<\/span><\/p><p><span style=\"font-weight: 400;\">Furthermore, as these bonds have a floating rate adjusted on a regular basis, they do not offer fixed returns. At the same time, investors receive a regular and periodic income from these bonds in the form of interest payouts.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">You can purchase these bonds from the designated branches of private and public lending institutions in India. However, if you are hesitant to invest in a bond that comes with a floating interest rate, you can consider alternative options.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Several fintech companies serve as a marketplace for high quality investment instruments. The platform currently offers an array of bonds, thereby allowing you to choose the one that suits your financial goals. Furthermore, it has a team of dedicated relationship managers so that your account is managed professionally.\u00a0<\/span><\/p><h2><b>Bottom Line\u00a0<\/b><\/h2><p><span style=\"font-weight: 400;\">The Reserve Bank of India declared the <\/span><b>Floating Rate Savings Bonds\u2019 <\/b><span style=\"font-weight: 400;\">interest rate for July 2022 to December 2022, which stays unchanged at 7.15%. This interest is payable every 6 months without any cumulative option.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">As an investor, you can purchase these bonds from the designated branches of several financial institutions in India. However, make sure to align your investment goals to your choice of investment instrument to achieve your objectives with ease. <\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The Indian Government issues the Reserve Bank of India&#8217;s Floating Rate Savings Bonds. The subscription for Floating Rate Savings Bonds 2021 was made available on 01 July 2021. As an investor, you can buy RBI\u2019s Floating Rate Savings Bonds 2021\u00a0from private or public sector lenders. However, the interest rate on these bonds is subject to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12644,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[879],"tags":[882,98,397,890,76,891],"class_list":["post-7430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bond-investment","tag-bond-investment","tag-bonds","tag-fintech-companies","tag-invest-in-bonds","tag-kredx","tag-savings-bonds"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/7430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=7430"}],"version-history":[{"count":32,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/7430\/revisions"}],"predecessor-version":[{"id":17751,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/7430\/revisions\/17751"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/12644"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=7430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=7430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=7430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}