RBI Floating Rate Savings Bonds: 8.05% Rate, NRIs Ineligible

Imagine the government asking you to lend it some of your pocket money for seven years.

In return, it promises to pay you extra money every six months.

This special deal is called the RBI Floating Rate Savings Bond.

Right now, the government is paying 8.05% interest, which is like getting ₹8.05 for every ₹100 you lend for a year.

The interest amount can change every six months, depending on what the government decides.

You can start lending with just ₹1,000, and there is no limit on how much more you can lend.

The money you earn from the bond is treated like income, so you may have to pay some tax on it, and the government takes a small cut automatically.

Most people cannot take their money back early, but people who are 60 years old or older can, under special rules.

People who live in other countries (NRIs) cannot start buying these bonds, but if you buy one and later move abroad, you can keep it until the seven years are up.