RBI Floating Rate Savings Bonds 2025: Safe Investment Option With 8.05% Interest
RBI May Cut Repo Rate Again in August 2025, Says ICICI Bank
Looking for a safe alternative to FDs? RBI's Floating Rate Savings Bonds offer 8.05% interest, sovereign guarantee, and bi-annual payouts. Learn features, benefits, and how to invest.
As many banks have been lowering fixed deposit (FD) interest rates, people are now looking for other alternate options to earn money safely. One good option is the Floating Rate Savings Bonds (2020) launched by the Reserve Bank of India (RBI).
These bonds give you higher interest than FDs and come with the full safety of the RBI. That means your money is secure.
How Do These Bonds Work?
The interest rate changes every 6 months.
It is linked to the National Savings Certificate (NSC) rate.
As of July–December 2025, the bond offers 8.05% interest, which is 0.35% more than NSC.
You will get interest twice a year – on January 1 and July 1.
Main Features
Time period: 7 years
Minimum amount: ₹1,000
No upper limit
Interest is taxable
You can’t take out money early, except for senior citizens:
Age 60–70: after 6 years
Age 70–80: after 5 years
Age 80+: after 4 years
Who Can Invest?
Only Indian citizens and Hindu Undivided Families (HUFs)
NRIs cannot invest
Great for:
Senior citizens
Low-risk investors
People who don’t need the money for 7 years
Where to Buy?
At any bank branch authorised by RBI
On bank websites
On the RBI Retail Direct portal
KYC documents (ID, address proof) are required
Example:
If you invest ₹1 lakh at 8.05% interest, you will get around ₹4,000 every 6 months.
This interest is taxable, but if you're eligible, you can submit Form 15G or 15H to avoid TDS.
