Floating Rate Bond

Floating rate notes (FRNs) are bonds with variable coupons tied to a money market reference rate, augmented by a specified spread. As interest rates fluctuate, FRNs offer investors flexibility and protection against interest rate risk, making them an attractive investment option in dynamic market conditions.


 

FLOATING RATE SAVING BOND 2020 (GOI)

Enjoy a risk-free investment with good returns

  • Minimum investment of Rs.1,000
  • No maximum limit on investment
  • 100% risk free investment option
  • Floating rate of interest with a Half Yearly interest payout
  • 7 years tenure of the bond from the date of issue with a special provision for premature redemption for Senior Citizens.

Who can Invest?

An Individual, not being a
Non-Resident Indian
In individual capacity on joint basis
A Hindu Undivided Family
A person residing in India

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. SGB is free from issues like making charges and purity in the case of gold in jewellery form.

 

 

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