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Govt savings bonds to offer higher rate of interest than small savings

The bond will be available at State Bank of India and other nationalised banks, as well as four private sector banks, the RBI said in a statement

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2 min read Last Updated : Jun 27 2020 | 2:08 AM IST

In a move that may increase retail appetite for government bonds, the Centre on Friday evening said it is going to issue a floating rate, taxable savings bond for an initial coupon of 7.15 per cent, to be reset half yearly from January 1 next year.

The coupon rate will be pegged with the prevailing National Saving Certificate (NSC) rate with a spread of 35 basis points over the respective NSC rate, the details and operational guidelines on which will be issued by the Reserve Bank of India (RBI) shortly.

The bond will replace the savings bonds offered by the government at

Topics : Government bonds interest rate

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