July 2, 2025

The RBI Floating Rate Savings Bonds for July to December 2025 will maintain an interest rate of 8.05%, the same as the previous period. These bonds are linked to the NSC interest rate, which currently stands at 7.7%. If NSC rates decrease, the impact on RBI bond rates will be visible from January 2026. Interest on these bonds is paid semi-annually on January 1 and July 1. Investors should note that returns are taxable, with TDS applicable if annual interest exceeds Rs 10,000. The minimum investment is Rs 1,000 with no maximum limit. The bonds have a lock-in period of seven years, with premature withdrawal options available for senior citizens above 60 years with penalties. There is no premature withdrawal option for others, but senior citizens have a varying lock-in period based on age. The effective date of premature encashment is 1st January and 1st July every year, with 50% recovery of the last six months' interest in such cases.

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Tags: Rbi, Floating rate savings bond, Interest rate, Nsc, Small savings schemes, Investment,