RBI Floating Rate Savings Bond Calculator
Calculate your semi-annual interest income and total returns on RBI 7.15% (Floating) Bonds.
Minimum investment: ₹1,000
Current rate (NSC + 0.35%)
Fixed tenure for RBI FRB is 7 years.
Semi-Annual Interest Payout:
₹0.00
Annual Interest Income:
₹0.00
Total Interest (7 Years):
₹0.00
Maturity Value (Principal + Total Interest):
₹0.00
What are RBI Floating Rate Savings Bonds (FRSB)?
The RBI Floating Rate Savings Bonds 2020 (Taxable) are debt instruments issued by the Government of India. Unlike traditional Fixed Deposits or Fixed Rate Bonds, the interest rate on these bonds is not static; it is reset every six months on January 1st and July 1st.
How the Interest Rate is Determined
The interest rate is linked to the prevailing National Savings Certificate (NSC) rate. The formula is: NSC Rate + 0.35%. For example, if the NSC rate is 7.70%, the RBI Floating Bond rate becomes 8.05%.
Key Features of RBI Floating Bonds
- Tenure: Fixed at 7 years.
- Minimum Investment: ₹1,000 with no maximum limit.
- Payout Frequency: Interest is paid out semi-annually. There is no cumulative option.
- Safety: Sovereign guarantee as it is issued by the Government of India.
- Taxation: Interest is fully taxable as per your income tax slab. TDS is applicable.
Example Calculation
If you invest ₹10,00,000 at a current rate of 8.05%:
- Annual Interest: ₹80,500
- Semi-Annual Payout: ₹40,250 (Paid on Jan 1 and July 1)
- Total Interest over 7 Years: ₹5,63,500 (Assuming the rate remains constant)
Note: Since the rate is floating, actual returns will vary based on future NSC rate adjustments.
Who Should Invest?
These bonds are ideal for investors seeking safety of capital and a regular income stream that adjusts with inflation/market rates. It is particularly popular among senior citizens looking for a higher yield than traditional savings accounts with zero credit risk.