Floating Rate Savings Bonds 2020 (Taxable)

Are the Floating Rate Savings Bonds (Taxable) transferable?
No, these bonds are not transferable.

What is the minimum and maximum limit for investment in the Floating Rate Savings Bonds (Taxable)? ​​​​​​​
The Bonds will be issued for a minimum amount of Rs. 1000/- (face value) and in multiples thereof. There will be no maximum limit for investment in Bonds.

What is the tenure of the Floating Rate Savings Bonds (Taxable)? ​​​​​​​
The tenure of the bond is 7 years from the date of issue. No interest will accrue after the maturity of the bond.

Is a nomination facility available? ​​​​​​​
Yes, a nomination facility is available.

How much tax do I have to pay? ​​​​​​​
The interest income from the bonds is taxable. TDS (This stands for Tax Deducted at Source, which means the tax you have to pay on your salary is already deducted and the net amount is received by you.) is deducted at the time of interest payment as per the prevailing IT rules.

What is the minimum and maximum limit for investment in the Floating Rate Savings Bonds (Taxable)? ​​​​​​​
The Bonds will be issued for a minimum amount of Rs. 1000/- (face value) and in multiples thereof.

What is the tenure of the Floating Rate Savings Bonds (Taxable)? ​​​​​​​
The tenure of the bond is 7 years from the date of issue. No interest will accrue after the maturity of the bond. Premature redemption facility is allowed for investors in the age group of 60 years and above as per RBI’s Notification.

When is the interest payable? ​​​​​​​

Interest is payable semi-annually from the date of issue of bonds, up to 30th June / 31^st December as the case may be, and thereafter half-yearly for period ending 30th June and 31st December on 1st July and 1st January respectively.

Are the Floating Rate Savings Bonds (Taxable) transferable? ​​​​​​​
No, these bonds are not transferable.

How much interest will the Floating Rate Savings Bonds (Taxable) bear?

​​​​​​The interest rate of the bond, would be re-set half yearly starting with Jan 1st, 2021 and thereafter every July 1st and will be linked with the prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate. Accordingly, the coupon rate on FRSB 2020 (T) for period July 1,2023 to December 31, 2023 and payable on January 1,2024 has been reset at 8.05% (7.7% +0.35% =8.05%). All subsequent coupon rate would be based on the fixation of rate of interest on NSC on Jan 01 and July 01, following the above methodology