RBI Floating Rate Savings Bonds: Government-Backed Investment With Regular Interest, 7-Year Lock-In And Tax Rules Explained

For investors who prefer stability over the ups and downs of equities, government-backed savings products can offer an alternative for parking money. The RBI Floating Rate Savings Bonds are one such option, with interest paid at regular intervals and returns linked to a government-set benchmark. The bonds are intended for eligible Indian investors seeking a fixed-income avenue, but they come with a seven-year tenure and specific withdrawal conditions. Understanding how the interest rate works, how the income is taxed and who can invest is important before committing funds.