Industry News

What are 7.75% savings (taxable) bonds?
Read More News

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.

Source : Live Mint back