About RBI Bonds

7.75% Savings (Taxable) Bonds

• Interest Rate: Fixed 7.75% per annum (since Jan 2018)
• Tenure: 7 years (no premature withdrawal for first 4 years)
• Interest Payment: Annual (non-cumulative only)
• Taxation: Interest taxable as per income slab, no TDS
• Eligibility: Resident individuals (single/joint), minors, HUFs

Floating Rate Savings Bonds (FRB)

• Interest Rate: NSC rate + 0.35% (currently 7.10% + 0.35% = 7.45%)
• Rate Reset: Every 6 months based on NSC rate
• Tenure: 7 years (premature withdrawal after 4/5 years with penalty)
• Interest Payment: Quarterly (cumulative option available)
• Taxation: Interest taxable as per income slab, no TDS

Key Features

• Government-backed, sovereign guarantee
• No maximum investment limit
• Transferable after lock-in period
• Nomination facility available
• Not tradable in secondary markets
• Available through designated banks (SBI, nationalized banks)

Comparison with Other Instruments

Instrument	Current Rate	Tax Status	Tenure
RBI 7.75% Bonds	7.75%	Taxable	7 years
RBI FRB	7.45%	Taxable	7 years
Bank FD	6.5-7.25%	Taxable	7 days-10 years
Post Office TD	7.0-7.5%	Taxable	1-5 years
Corporate Bonds	8-9%	Taxable	3-10 years