What are 7.75% savings (taxable) bonds?
1 min read . Updated: 11 Feb 2020, 10:25 PM IST- The face value of one bond is ₹100 and you need to buy at least 10 bonds at a time; there is no upper limit
- The bonds, which have a maturity period of seven years, provide a return of 7.75% per annum
With bank deposits offering low returns, bonds that offer better rates and have a sovereign guarantee can be good options. The 7.75% savings (taxable) bonds are one such option. Any individual or HUF can invest but NRIs can’t.
The face value of one bond is ₹100 and you need to buy at least 10 bonds at a time; there is no upper limit. The bonds, which have a maturity period of seven years, provide a return of 7.75% per annum. There are two interest payout options. In the non-cumulative option, interest is paid on a half-yearly basis. In the cumulative option, interest is paid at the end of the maturity period. The interest earned from these bonds is taxable in your hands.
NPS subscribers can get partial withdrawal amount on fifth day in bank account
3 min read . 15 Jan 2021
Why India's first Saral Jeevan Bima is twice the price of a regular term plan?
3 min read . 15 Jan 2021
Roll-over exemption on LTCG is available to each co-owner for proportionate shares
3 min read . 15 Jan 2021Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.
