Government Bonds
RBI Bonds
RBI Bonds and Sovereign Gold Bonds (SGBs) offer secure, government-backed investments with fixed interest rates and the sovereign guarantee of the Government of India.
RBI Floating Rate Savings Bonds provide a guaranteed fixed interest rate, paid semi-annually, offering a steady income stream and capital protection with sovereign backing.
These long-term investments have tenures of 7 to 10 years, allowing flexibility to match your investment horizon. The bonds are non-transferable and non-negotiable, held in the investor's name, minimizing liquidity risk.
Additionally, enjoy tax benefits under Section 80C of the Income Tax Act, with deductions available on qualifying investments.
Sovereign Gold Bonds
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold issued by the Reserve Bank of India (RBI) on behalf of the Government of India.
Backed by the sovereign guarantee of the Government of India, providing security and trust to investors.
Invest in gold in a paperless form without the hassle of storing physical gold, reducing storage and security costs.
Fixed interest rate paid semi-annually on the initial investment amount, providing an additional income stream for investors.
Capital gains tax exemption on redemption if held until maturity, making it a tax-efficient investment option.
Liquidity through secondary market trading on stock exchanges, allowing investors to buy and sell SGBs before maturity.
Questions about service
RBI Bonds, also known as Reserve Bank of India Savings Bonds, are government-backed savings instruments issued by the Reserve Bank of India (RBI) to retail investors.
RBI Bonds offer a guaranteed fixed interest rate paid semi-annually, ensuring a steady income stream. They come with a sovereign guarantee on the principal amount invested, providing capital protection. These bonds have tenures ranging from 7 years to 10 years, offering flexibility to match investment horizons.
No, RBI Bonds are non-transferable and non-negotiable. They are held in the name of the investor, reducing liquidity risk.
Investors in RBI Bonds can avail tax benefits under Section 80C of the Income Tax Act. This allows them to claim deductions on investments up to ₹1.5 lakh annually. The interest earned on RBI Bonds is taxable as per the investor’s income tax slab, but the tax is deducted at source (TDS) if the interest income exceeds ₹10,000 in a financial year, TDS is applicable at the rate of 7.5% (increased from 5% as of April 2023). These figures are subject to change based on updates in tax laws and regulations.
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold, issued by the Reserve Bank of India (RBI) on behalf of the Government of India.
SGBs are backed by the sovereign guarantee of the Government of India, ensuring security and trust for investors. They offer a fixed interest rate paid semi-annually on the initial investment amount, providing an additional income stream. Capital gains tax exemption on redemption is available if held until maturity, making them a tax-efficient investment option.
Yes, SGBs can be traded on stock exchanges in the secondary market, providing liquidity to investors who wish to buy or sell these bonds before maturity.
Both RBI Bonds and Sovereign Gold Bonds (SGBs) offer investors the opportunity to invest in government-backed securities with fixed interest rates.
While RBI Bonds offer fixed interest payments semi-annually and have longer tenures of 7 to 10 years, SGBs offer fixed interest payments semi-annually as well, along with the potential for capital appreciation linked to the price of gold.
SGBs provide the added advantage of investing in gold without the need for physical storage, while RBI Bonds offer tax benefits under Section 80C of the Income Tax Act.
Investors can choose between RBI Bonds and SGBs based on their investment objectives, risk appetite, and preferences for fixed income versus gold investments.
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