Given the sharp fluctuations in the Indian market, most investors want guaranteed returns with low risk. For such investors, RBI Floating Rate Saving Bond (FRSB) can be a better option. The interest rate of these bonds is always kept 0.35% higher than the interest rate of National Saving Certificate (NSC). For example, if 7% interest is available annually on NSC scheme, then 7.35% interest will be available on FRSB. Currently, the interest rate on FRSB is 8.05% per annum. As the name suggests, this bond is based on floating rate. This means that the interest rate is changed every six months. It is directly related to the trend of the debt market. However, there is less volatility in this market. For whom is RBI Floating Rate Saving Bond better? How to buy RBI Floating Rate Saving Bond?
These bonds can be purchased from RBI Retail Direct website, banks’ app/site, bank branch or post office. PAN is required, minimum investment is ~1000 and maximum investment is unlimited.
