Date April 04, 2026.

Floating Rate Savings Bonds, 2020 (Taxable)

The Government of India has introduced Floating Rate Savings Bonds, 2020 (Taxable) (FRSB 2020 (T)) effective July 1, 2020.

Key details:

Eligibility: Resident individuals and HUFs can invest. NRIs are not eligible.

Investment Limit: Minimum ₹1,000 (in multiples of ₹1,000). No maximum limit.

Interest: Semi-annual payments, floating rate linked to NSC + 0.35%. First interest payment on Jan 1, 2021 at 7.15%.

Maturity: 7 years. Premature redemption allowed for senior citizens (age-based lock-in periods apply).

Taxation: Interest is taxable; TDS applicable unless exempted under Income Tax Act.

Nomination : Nomination and Cancellation of Nomination facility available. Investors can make separate nomination for each investment.

Transferability: Non-transferable except to nominee/legal heir upon death.

Application: Available at designated branches of SBI, 11 Nationalized Banks, and 4 Private Sector Banks.

For more details, refer to the official notification or contact your nearest authorized bank branch.

Read Govt of India Notification

Read More-Floating Rate Savings Bonds, 2020 (Taxable) -Operational Guidelines

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