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RBI Floating Rate Savings Bonds
RBI Floating Rate Savings Bonds pay 8.05% for 1st Jul to 31st Dec 2026, set at the NSC rate plus 0.35% and reset every 1st Jan and 1st Jul. The catch is that your money is locked: the bond runs 7 years and cannot be traded, pledged for a loan or transferred except to a nominee or heir, and the interest is taxable with TDS.
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Key facts
- Scheme
- Floating Rate Savings Bonds, 2020 (Taxable) source
- Current rate
- 8.05% a year for 1st Jul to 31st Dec 2026 (NSC rate 7.70% plus 0.35%), payable 1st Jan 2027 source
- Rate reset
- Every six months, on 1st Jan and 1st Jul source
- Tenor
- 7 years source
- Where to buy
- Agency bank branches (all Canara Bank branches, for example) and ICICI Direct online; availability on RBI Retail Direct not verified source
- Minimum
- Not covered in our sources source
- Maximum
- Not covered in our sources source
- Selling before maturity
- Not tradable; not eligible as loan collateral; non-transferable except to a nominee or legal heir. Premature redemption rules not covered in our sources source
- Tax
- Interest is taxable and TDS applies source
- NRI access
- Not covered in our sources source
- Fees
- Not covered in our sources source
Suits
- Investors who can lock money away for 7 years and want a rate that moves with NSC
Watch out for
- Cannot be sold, traded or pledged
- Rate can fall at any half yearly reset
- Interest taxable with TDS
What rate do RBI Floating Rate Savings Bonds pay now?
8.05% a year for the half year from 1st Jul to 31st Dec 2026, payable on 1st Jan 2027 (RBI). The rate is the National Savings Certificate rate, 7.70% for that period, plus 0.35%.
The rate is reset every six months, on 1st Jan and 1st Jul, so it moves with the NSC rate in both directions (RBI). The bonds run for 7 years.
Where can you buy RBI Floating Rate Savings Bonds?
At agency bank branches and through ICICI Direct online. Canara Bank, for example, has enabled all its branches (Canara Bank), and ICICI Direct lists RBI Floating Rate Bonds in its FD & Bonds menu (ICICI Direct). See our ICICI Direct review.
Whether they can be bought on RBI Retail Direct was not verified, because its FAQ could not be read. Minimum and maximum investment amounts are not covered in the sources we used; confirm them with the bank before applying.
Can you exit RBI Floating Rate Savings Bonds early?
Not by selling. The bonds are not tradable, cannot be used as collateral for a loan and cannot be transferred except to a nominee or legal heir (RBI). The rules on premature redemption are not covered in the sources we used.
If you may need the money before 7 years, compare with listed government securities, which can be sold on the exchange or NDS-OM; see can I sell a bond before maturity.
How is the interest on RBI Floating Rate Savings Bonds taxed?
It is fully taxable, and TDS is deducted (RBI). The scheme's name, 2020 (Taxable), says as much. How bond interest is taxed at your slab is covered in how is bond interest taxed and is TDS deducted on bond interest.
Questions people ask
What is the current RBI Floating Rate Savings Bond rate?
8.05% a year for 1st Jul to 31st Dec 2026, set at the NSC rate of 7.70% plus 0.35%.
Is TDS deducted on RBI Floating Rate Savings Bonds?
Yes. The interest is taxable and TDS applies.
Can I sell RBI Floating Rate Savings Bonds on the stock exchange?
No. They are not tradable, cannot be pledged for a loan and can be transferred only to a nominee or legal heir.
Where can I buy RBI Floating Rate Savings Bonds online?
ICICI Direct lists them online, and agency bank branches such as Canara Bank sell them. Availability on RBI Retail Direct was not verified.