Earn 8% Return with Government of India Savings Bond

Written on Saturday, November 28, 2015
By Mohit Mittal- AVP & Head Fixed Income, Bajaj Capital Ltd.

Facebook   Twitter   Google+   LinkedIn   Pinterest

As most of the Banks have reduced their FD Rates to 7.50-8%, Government of India 8% Taxable Bonds have got attraction being 100% secured and guaranteed by RBI on redemption. GOI (Government of India) bonds are low risk debt instruments issued by the Government of India against underlying assets of the government. The return on investment (ROI) is comparable to Bank FDs and is guaranteed of being repaid in fixed time intervals along with the interests.


Who Can Invest


A. Individuals



B. Hindu Undivided Family



C. Charitable Institutions

-A company registered under section 25 of the Indian Companies Act 1956.

-An institution that has obtained a certificate of Registration as Charitable Institution in accordance with the law in force.

-Any institution that obtained Certificate from an income tax authority under section 80 G of the Income Tax Act. 1961.

-Any institution notified by the Central Government under clauses (ii) or (iii) of Sub – Section (1) of Section 35 of the Income Tax Act, 1961.


D. University

A university established under Central, State or Provincial Act, including an institution declared to be a university under Section 3 of the University Grants Commission Act.

#NRIs are not eligible for investment in saving bonds.


Rate of Return


These taxable bonds will offer 8 percent return per annum, payable half-yearly on 1st February and 1st August. Both Cumulative and non-cumulative options are available. Interest on Bond in the form of "Bond Ledger Account" will be paid, by cheque/warrant or through ECS by credit to bank account of the holder as per the option exercised by the investor/holder.




Income-Tax: Interest on the Bonds will be taxable under the Income-Tax Act, 1961 as applicable according to the relevant tax status of the bond holder.


Wealth Tax: The Bonds will be exempt from Wealth-tax under the Wealth- tax Act, 1957.



One can invest in these bonds with a minimum of Rs. 1,000 and further in multiple of 1,000. There is no capping on the upper limit of investment. To redeem, on maturity investor needs to discharge Certificate of Holding and submit the same to the Issuer.



#Government of India taxable bonds is non-transferable and non-tradable. 

Get More Info Now!


 Popular Tags

(1) Child Education(2) Child Future Planing(1) Children Future Planing(2) Equity(1) Financial Goal(1) Financial Planing(2) health Insurance(2) Insurance(1) Investment Options(2) Investments(1) Life Insurance (4) MIP(1) Mutual Fund(1) Mutual Funds(5) National Pension System(1) NPS(5) Personal Finance(2) Retirement(1) Retirement Planing(2) SIP(5) Systematic Investment Plan(2) tax calculator(2) Term Insurance(1)Awards(2)Balanced Mutual Funds(4)Bond(2)Bonds(15)Budget 2016-17(4)Budget 2018(2)Child Education(1)Child Insurance(8)Children Education(4)Children Future Planing(3)Children Future Solution(2)Children Future Solutions(2)Claims(7)Corporate NPS(1)Credit Card(2)Debt(6)Debt Funds(2)Early Investing(22)ELSS(4)EPF(2)Equity(9)Financial Assessment(7)Financial Goal(19)Financial Goel(1)Financial Planing(2)Financial Planning(42)Fixed Deposits(3)Fixed Income Funds(1)Fixed Tenure Fund(1)General Insurance(6)GOI Taxable Bonds(2)Gold(1)GST(1)Health Insurance(28)Home Insurance(2)Income Tax(2)Indian Economy(1)insurance(41)Insurance Grievances(5)Interview(2)Investment(5)Investments(82)ITR(7)Life Insurance(21)Life style(20)Mutual Fund(71)Mutual Funds(30)National Pension System(4)NFOs(1)NPS(6)Overseas Insurance(1)Pension Plan(12)Personal Finance(9)PPF(2)Quiz(1)Retirement(28)Retirement Goal(7)Retirement Goel(1)Retirement Planning(5)Save Tax(6)shikha(1)SIP(14)Sovereign Gold Bond Scheme(3)Start Smart(2)SWP(3)Systematic Investment Plan(3)tax free bonds(1)Tax Planning(37)Tax Saving(44)Term Insurance(2)test(1)Travel(1)Travel Insurance(5)ULIP(5)ULIPs(2)Wealth Creation(93)