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RBI Bond Investment: To improve and secure our future, we all need a safe investment option that gives fixed returns after a fixed time. Although there are many mutual funds and government schemes in the market, but the investment option we are going to tell you about today is considered to be the best. The first reason for this is that it has a high interest rate and there is no risk of risk.

Here we are talking about RBI bonds issued by the Reserve Bank of India. This is a great way to accumulate more funds in the long term. It is considered better than bank FD, post office scheme, PPF because RBI bonds are giving the highest profit among all the other fixed income schemes and when the Reserve Bank itself is issuing it, there is no need to worry about safety or security. In this, a return is given on the deposited amount at a fixed rate. RBI bonds launched in 2003 are also known as Government of India Savings (Taxable) Bonds or Floating Rate Saving Bonds.

Why is RBI bond the best?

RBI bonds are considered the best as a way of investment because while PPF or bank FD gives 7-7.25 percent interest rate, RBI bonds give 8.05 percent interest. There is a rule of reviewing the interest rate twice a year. Currently the interest rate is 8.05 percent. Another big feature of this is that it is less affected by the fluctuations of the market. Being issued by the government, it is considered the safest investment.

However, the lock-in period in RBI bonds is 7 years. If you redeem RBI bonds before this, you may have to pay a penalty. By investing 5 lakhs in RBI bonds for 7 years, the maturity amount will increase to more than 8.5 lakhs (8,59,693) at the rate of 8.05 percent interest. That is, there will be a profit of more than 3 lakhs in the form of interest only. Another special thing about this is that the interest rate is paid twice a year on 1 January and 1 July. You can start investing in RBI bonds from Rs 1000. There is no upper limit in this. Transactions are done online only.

Keep this important thing in mind

However, while investing in RBI bonds, it is important to keep in mind that the interest income in it is taxed, whereas this is not the case with PPF. The second important thing is its long lock-in period. You cannot invest in it for 1 or 2 years. However, senior citizens can redeem the bonds before time. The lock-in period for people aged 60-70 years is 6 years, for people aged 70-80 years it is 5 years and for people above 80 years it is 4 years. There is also a facility of nominee. If the person buying the bond dies, the money will be transferred to the nominee.

How to buy bonds?

To buy RBI bonds, you have to apply at a nearby bank branch or online. You can open RBI Floating Rate Savings Account by going to the bank. For this, you will need PAN card, Aadhaar card, passport and cancelled cheque. You have to fill all the details in the form and submit it to the bank along with documents and passport size photo.