Before investing in RBI Floating Rate Savings Bonds 2020 (Taxable), you must know 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 on these bonds is linked to the interest rate on the National Savings Certificate (NSC), a small savings scheme backed by the Union government. The interest rate on the RBI Variable Rate Savings Bonds is 0.35% higher than that offered by the NSC. The interest is reset twice a year – in July and January.
These bonds have a maturity period of seven years. Please note that there is no early withdrawal option for regular investors, however, senior investors have the option of early withdrawal after a specific lock-in period. Interest is paid semi-annually. Interest income is taxable in the hands of investors.
How to Buy RBI Floating Rate Savings Bonds 2020 (Taxable)
Below are some of the ways to buy RBI floating rate savings bonds:
- Through the bank’s app/website
- Through the RBI’s Direct Retail Sales Website or App
- From bank branch
How to buy RBI Floating Rate Savings Bonds 2020 (Taxable) through RBI
To buy Reserve Bank of India Floating Rate Savings Bonds 2020 (Taxable) through the Reserve Bank of India, you need to create a Reserve Bank of India (RDG) direct retail account using your identity documents and bank account details. Once done, you need to follow the steps mentioned below to invest.
Step 1: RBI Retail Direct Selling Homepage Login to your RBI Retail Direct Selling account (rbiretaildirect.in) and then click on ‘FRSB’
Fountain: https://rbiretaildirect.in/#/
Step 2: RBI offers floating rate savings bonds
If there is any ongoing auction for RBI Floating Rate Savings Bonds, it will appear on the dashboard. Click on the “Bid” button and then navigate to “Bid Entry”.
Step 3: Pay for the RBI’s floating rate savings bond offer
In the “Bid Entry” box, type the “Bid Amount” that you are proposing. The minimum bid amount is Rs 1000. Once you type the bid amount, the remaining column will be automatically filled and you just need to click on “Submit”. Once you click on “Submit”, a new web page will open which will have various payment options including UPI. Once the payment is made, you will receive a confirmation email and SMS. The bonds will be allocated to your RBI Direct Retail Account once the auction period is over.
Fountain: https://rbiretaildirect.in/#/
How to buy RBI Floating Rate Savings Bonds 2020 (Taxable) from the bank’s website or app
The steps to buy Reserve Bank of India Floating Rate Savings Bonds 2020 (Taxable) from a bank’s website or app will vary depending on the bank used. Here we have taken the example of Axis Bank‘Axis Mobile’ application by ‘.
Here is 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 with your credentials. Then click on ‘More’ and navigate to ‘Investments’.
Step 2: A new page of the application will open and you will find a button named “Savings Bonds with an interest of 8.05% per annum”. Click on it. A new web page will open where you will need to type in “Investment Details”. Please note that here you need to mention your preferred holding mode – Hard Copy or Soft Copy. Once you select all the necessary details, click on the “Continue” option and then pay the amount you wish to purchase.
A step-by-step guide on how to buy RBI Floating Rate Savings Bonds through Kotak Mahindra Bank Online Banking:
According to the Kotak Mahindra Bank website, here’s how you can buy RBI floating rate savings bonds:
- Login to Kotak Mahindra Bank Online Banking
- Click on the ‘Investments’ tab and select ‘RBI Bonds‘
- Enter the deposit amount and nominee details and accept the terms and conditions.
- Enter the OTP sent to our registered mobile number
- Once verified, you will be able to see your request number and the amount invested.
- You can also check your portfolio and download the Holding certificate
How to get RBI Floating Rate Savings Bonds 2020 (Taxable) through bank branches
Visit your bank branch and check how to invest in Reserve Bank of India Floating Rate Savings Bonds 2020 (Taxable). Please note that there is a cash limit, beyond which you cannot use cash to buy these bonds. “By cash, if the deposit amount is up to Rs 20,000. By cheque or bank draft. When a deposit is made by cheque or bank draft (DD), the date of its encashment will be the date of investment,” Kotak Mahindra Bank said on its website.
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