8 Things To Know About Govt Bonds & Other Alternatives

Outlook Money

What Are Govt Bonds?

Govt bonds are state development loans (SDLs) issued to raise funds for various developmental projects like infrastructure, etc.

What Are Govt Bonds?

Where Can You Buy Govt Bonds?

You can buy government bonds or SDLs through the Reserve Bank of India's (RBI) Retail Direct Portal.

Where Can You Buy Govt Bonds?

Higher ROI

These bonds are usually of long durations and provide higher interest rates to buyers.

Higher ROI

Lock-In Period

Government bonds usually have a lock-in period of seven to 40 years.

Lock-in-tenure

Premature Withdrawal

Investors can make premature withdrawals based on their age and bond features.

Premature Withdrawal

Floating Rate Bonds

RBI also issues floating rate bonds (FRBs), and they can be a great option. FRBs offer 7.35% with a 7-year lock-in.

Floating Rate Bonds

Senior Citizen Saving Scheme

SCSS offers 8.2% interest, with a maximum investment limit of Rs. 30 lakh, and comes with tax benefits under Section 80C.

Senior Citizen Saving Scheme

Post Office Monthly Income Scheme

This scheme provides a regular monthly income with a higher interest rate and a maximum investment limit of Rs. 15 lakh.

Compiled By Himani Verma

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