December 2025: What is the latest interest rate, when will you get it?
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RBI floating rate savings bond: What is the minimum and maximum investment allowed?
What is the tenure of the RBI floating rate savings bond?
The interest rate for RBI Floating Rate Savings Bonds for the period July to December 2025 will continue to earn the same as before. Read on to find out how much interest these bonds will earn during this period.The RBI Floating Rate Savings Bond (FRSBs), 2020 (Taxable) will offer 8.05% interest from July to December 2025, the rates are unchanged from January to June 2025 rates. The interest rate of the RBI Floating Rate Savings Bond is linked to the interest rate of the National Savings Certificate (NSC), a small savings scheme backed by the government. The interest rate of RBI Floating Rate Savings Bonds is always set as 0.35% higher than whatever rate NSC offers.The government has announced no change in the interest rates for small savings schemes like Public Provident Fund (PPF), National Savings Scheme (NSC), Senior Citizen Savings Scheme (SCSS) and others on June 30, 2025.The interest rate on RBI floating-rate savings bonds is not fixed. It is reset twice every year i.e every six months. When the interest rate on NSC rises, the RBI floating rate savings bond will also pay a higher interest rate. Similarly, if the NSC interest rate falls, so will the interest rate on the RBI Floating Rate Savings Bond.The interest is payable semi-annually. The interest on these bonds is paid on January 1 and July 1 every year.Note that the interest received on such bonds is taxable in the hands of the investors. Also, you cannot claim any tax deduction for investing in these bonds. Further, TDS will be deducted on the interest received from these bonds, if the annual interest exceeds Rs 10,000.The minimum subscription amount for the RBI floating rate savings bond is Rs 1,000, with subsequent investments in multiples of Rs 1,000. There is no maximum limit. You cannot borrow against the RBI Floating Rate Savings Bond 2020 (Taxable) bonds.According to the PIB release on June 26, 2020, "RBI floating rate bond has a tenure and lock-in period of seven years." There is no premature withdrawal option, but senior citizens get the option to prematurely withdraw money with a penalty after a minimum lock-in period. For those aged 60 to 70, the lock-in period is six years. For those aged 70 to 80, the lock-in period is five years. Those aged above 80 can withdraw their investment after four years from the date of investment.
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