Get 8.05% interest on these RBI bonds: How to buy RBI Floating Rate Savings Bonds online, offline
Before you invest in RBI Floating Rate Savings Bonds 2020 (Taxable), you must know about its features. RBI Floating Rate Savings Bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. The interest rate of these bonds is linked to the interest rate of the National Savings Certificate (NSC), a small savings scheme backed by the Union government. The interest rate of RBI Floating Rate Savings Bonds is 0.35% higher than what NSC offers. The interest is reset twice every year — in July and January.
These bonds have a maturity period of seven years. Do note that there is no premature withdrawal option for regular investors, however, senior citizen investors do get an option for premature withdrawal after a specified lock-in period. The interest is payable semi-annually. The interest income is taxable in the hands of the investors.
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How to buy RBI Floating Rate Savings Bonds 2020 (Taxable)
Here are some of the ways to buy RBI Floating Rate Savings Bonds:
- Through the bank app/website
- Through RBI retail direct website or application
- From bank branch
How to buy RBI Floating Rate Savings Bonds 2020 (Taxable) through RBI
To buy RBI Floating Rate Savings Bonds 2020 (Taxable) through RBI, you need to create an RBI retail direct (RDG) account using your identity documents and bank account details. Once this is done, you need to follow the steps mentioned below to invest
Step 1: RBI retail direct homepage
Login to your RBI retail direct account (rbiretaildirect.in) and then click on ‘FRSB’
Step 2: Bid for RBI Floating Rate Savings Bonds
If there is any auction happening for RBI Floating Rate Savings Bonds, then it will show up in the dashboard. Click on the ‘Bid’ button and then navigate to ‘Bid Entry’.
Step 3: Pay for the Bid on RBI RBI Floating Rate Savings Bonds
In the ‘Bid Entry’ box type in your proposed ‘Bid Amount’. The minimum bid amount is Rs 1,000. Once you type the bid amount the remaining column will be auto-filled and you just need to click on ‘Submit’. Once you click on ‘Submit’ a new webpage will open which will have various payment options including UPI. Once the payment is done, you will get a confirmation email and SMS. The bonds will be allocated to your RBI retail direct account once the auction period is over.
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How to buy RBI Floating Rate Savings Bonds 2020 (Taxable) from the bank website/app
The steps to buy RBI Floating Rate Savings Bonds 2020 (Taxable) from a bank website/app will differ depending on the bank used. Here we have taken the example of Axis Bank’s ‘Axis Mobile’ app.
Here’s a step-by-step guide on how to buy RBI Floating Rate Savings Bonds 2020 (Taxable) through Axis Bank app:
Step 1: Open the ‘Axis Mobile’ app and log in using your credentials. Then click on ‘More’ and navigate to ‘Investments’.
Step 2: A new app page will open and here you will find a button called ‘Savings [email protected]% interest p.a.’. Click on that. A new web page will open here you need to type in ‘Investment Details’. Do note that here you have to mention what is your preferred mode of holding — soft copy or physical copy. Once you select all the necessary details, click on the ‘Proceed’ option and then pay the amount you want to purchase.
A step-by-step guide on how to buy RBI Floating Rate Savings Bonds through Kotak Mahindra Bank Net banking:
According to Kotak Mahindra Bank website, here’s how you can buy RBI Floating Rate Savings Bonds:
- Login to Kotak Mahindra Bank Net banking
- Click on the ‘Investments’ tab & select ‘RBI Bonds’
- Enter the deposit amount, and nominee details and accept the terms & conditions
- Enter the OTP sent on our registered mobile number
- Once verified, you can view your application number & invested amount
- You can also view your portfolio and download the certificate of Holding
How to RBI Floating Rate Savings Bonds 2020 (Taxable) through bank branches
You visit your bank branch and check how to invest in RBI Floating Rate Savings Bonds 2020 (Taxable). Do note that there is a cash limit, beyond which you can’t use cash to buy these bonds.“In cash, if the amount of deposit is up to Rs 20,000. By cheque or demand draft. Where a deposit is made by cheque or demand draft (DD), the date of its encashment shall be the date of investment,” said Kotak Mahindra Bank on its website.
