The interest rate of RBI Floating Rate Savings Bonds (FRSB) 2020 (Taxable) is reviewed semi-annually and it is due for revision on January 1, 2024. At present, it offers an interest rate of 8.05% per annum. This is one of the highest interest rates offered on safe fixed-income products and many investors want to know if this rate will continue for another six months or not. To understand, how much returns you can expect from RBI Floating Rate Savings Bonds (FRSB) 2020 next year, you need to know how the interest rate is calculated. Let us explain.
How the interest rate of RBI Floating Rate Savings Bonds 2020 (Taxable) is calculated
The interest rate of RBI Floating Rate Savings Bonds 2020 (Taxable) is not fixed. It is linked to the interest rate of the National Savings Scheme (NSC), a small savings scheme offered by the Union government. RBI Floating Rate Savings Bonds will pay 0.35% higher than what NSC offers. The interest rate of…
