Govt to discontinue 7.75% taxable savings bonds scheme from May 28

The bonds were issued in January 2018 for residents and Hindu Undivided Family (or HUF) members, and became instantly popular.

The government will no longer sell its savings bonds that provided returns at 7.75 per cent (on a taxable basis), it said in a notification on Wednesday.

This was a popular instrument among the retired, who used to invest in this instrument that came with a lock-in period of 4-6 years — depending on the age of the bondholder. For others, there was no premature redemption.

“The Government of India … hereby announces that the 7.75 per cent Savings (Taxable) Bonds, 2018, shall cease for subscription with effect from the close of banking business on Thursday, May 28, 2020,” the