look news india
RBI announces FRSB (2034) rates: The Reserve Bank of India has fixed the interest rate on Floating Rate Savings Bond (FRSB) 2034 at 8 percent. The bonds will yield 8 percent interest from April 30 to October 29, 2024. It is worth noting that the interest rate on this bond changes every six months.
The central government is issuing a special type of bond called a floating rate bond (FRB), which will mature in 2034. In which you get a fixed interest rate like other regular bonds. But RBI changes the interest rate every six months.
Interest rates are set based on the average yield of recent auctions for short-term government debt (Treasury bills). Which keeps changing depending on the market conditions. At present, 8 percent interest will be given on this bond for the next six months.
Higher and safer returns compared to other sources
Investors investing in FRSB will get 8 percent interest for the next six months. Which is more than normal bank FD. Since interest rates fluctuate depending on market conditions, investors can get attractive returns. In which at least Rs. You can invest up to Rs 1000, no limit on maximum investment. Which are safe because they are issued by the government.
Interest income every six months
The interest rate applicable on FRSB is six months. The interest amount is deposited in the investor's account on 1 January and 1 July every year. There is no provision for cumulative interest payment. If the benchmark rises, investors benefit from it.
Withdrawals are beneficial only after maturity of the bond
After purchasing the bond, you can withdraw it after completion of the maturity period of seven years. Premature withdrawal is possible for senior citizens after the minimum lock-in period, but there is a penalty. Loans cannot be taken against these bonds which are not listed.