New Delhi, Business Desk. This is a period of outbreak of corona virus epidemic in which the returns of investors are continuously decreasing. Many banks have reduced interest rates on deposits, while many are in the process of reducing them. From savings accounts to FDs and small saving schemes, interest rates are getting reduced. The interest rate on PPF, a very popular savings scheme to create a retirement fund, has come down to 7.1 percent. In such a situation, investors can get better returns by investing in the RBI 7.75 percent bond scheme.
Investment opportunity is only today
RBI 7.75% bond is a taxable bond scheme of the Government of India. Investment in this bond is risk free as it is issued by the Government of India. Any Indian citizen can invest in this bond. This bond offers 7.75% return, hence its name is RBI 7.75% bond. Investors have only Thursday to invest in risk-free schemes that offer better returns. The scheme closes on 28 May. The Reserve Bank of India has announced that 7.75% Savings (Taxable) Bonds, 2018 will no longer be available for investment from Friday, 29 May 2020. Customers can invest in the scheme only till the completion of banking business hours on Thursday. RBI started issuing this bond on 10 January 2018.
2% more interest than SBI Bank FD
In this bond scheme of RBI, customers are getting more than 2 percent interest as compared to SBI Bank’s FD. State Bank of India is offering 5.1 percent interest rate on one year fixed deposits from 27 May 2020. Apart from this, the bank is offering 5.4 percent interest rate on FDs of more than five years. At the same time, RBI is offering taxable bonds of 7.75% per annum to investors. This is the reason why this scheme is very popular among investors.
Start investing in bonds with a minimum of Rs 1,000
Investors can get guaranteed returns through this bond scheme. The interest in the bond is calculated annually, but every 6 months the interest is credited to the investor’s savings account. In addition, if the investor wishes, he can also pay interest at the time of maturity of the bond. There is no maximum investment limit in RBI’s 7.75 percent bond. At the same time, any person can start investing in this bond with a minimum of Rs 1,000.
There is also a facility for premature withdrawal
The RBI RBI 7.75% bond has a maturity period of seven years. However, investors between the age of 60-70 years can withdraw from the bond after six years, investors between the age of 70 and 80 after five years and investors above the age of 80 only after four years.
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