Archive · 14 Sep 2025
FRSBs vs. FDs: New Safe Investment for Conservative Investors
If you're looking for a safe place to put your money, FRSBs are a good option.
They're like special bonds that are backed by the Indian government, so your money is very safe.
You'll get paid interest every six months, which is a steady income stream.
The interest rate is higher than what you typically get from regular FDs.
Because they are government-backed, they carry virtually zero risk.
However, you have to leave your money in for seven years, and the interest you earn is taxable.
They are a great alternative to FDs.
FRSBs offer a higher interest rate than FDs.
FRSBs have a 7-year lock-in period.
Interest is paid out every 6 months.
FRSBs are backed by the Government of India.
FRSBs are ideal for conservative investors seeking safety and returns.
- Who
- Chartered Accountant Nitin Kaushik
- What
- Recommends Floating Rate Savings Bonds (FRSBs) as a safer, higher-yielding alternative to Fixed Deposits (FDs).
- When
- N/A
- Where
- India
- Why
- FRSBs offer higher returns and guaranteed safety compared to FDs.
- Investment Type
- Floating Rate Savings Bonds (FRSBs)
- Interest Rate (Current)
- FD rate + 1.5%, ~8.05%
- Tenure
- 7-year lock-in
- Payouts
- Every 6 months
- Safety
- Government of India backed
- Premature Withdrawal
- Not allowed except for seniors