Want regular income sans credit risk? Invest after exhausting SCSS limit

Younger investors in wealth accumulation stage and those unwilling to lock in for seven years may steer clear

Retail investors can now purchase Floating Rate Savings Bonds (FRSBs), 2020 (Taxable) through the Reserve Bank of India’s (RBI) Retail Direct portal. While this development will make it more convenient to purchase these bonds, investors must check their suitability before they opt for them.

Rate linked to NSC

The interest rate offered by FRSBs is linked to the interest rate offered by the National Savings Certificate (NSC). The rate is the NSC rate plus 35 basis points (0.35 per cent). When the NSC rate gets revised, the returns of these bonds also change. Rates of small savings instruments, including the