Floating Rate Savings Bond Offers 8.05% Return

The Floating Rate Savings Bond, 2020 (Taxable) is a bond issued by the Indian government that offers an interest rate of 8.05% per year.

This is higher than what most banks offer on fixed deposits.

The interest rate can change every six months based on the National Savings Certificate (NSC) rate.

The bond has a tenure of seven years and is very safe because it is issued by the government.

However, the money invested cannot be withdrawn early, except for people who are 60 years or older.

The interest earned is taxable.

Investors should consider the floating interest rate and the long tenure before deciding to invest.