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How to Buy RBI Floating Rate Bond with RR Finance
Piyush Prajapati 30 April, 2024

What are RBI Floating Rate Bonds ?

The Reserve Bank of India (RBI) issues bonds known as RBI Floating Rate Bonds, which provide variable interest rates. The interest rate on RBI Floating Rate Bonds is linked to the National Savings Certificate (NSC) rate, ensuring a dynamic return for investors in response to prevailing interest rates. These floating rate bonds will continue to earn 0.35% higher ROI than the prevailing NSC rate. If NSC's ROI changes, the coupon/Interest rate on these bonds is subject to change every six months, on January 1 and July 1.

Importance of Investing in RBI Floating Rate Bonds

Investing in RBI Floating Rate Bonds is a safe way to earn attractive interest rates and ensure capital preservation in this high inflationary environment. Since they are issued by RBI, this adds a layer of security for investors, making RBI Floating Rate Bonds an attractive investment option.

Understanding RBI Floating Rate Bonds

Features of RBI Floating Rate Bonds

(I) Attractive Interest Rate : Investors can profit from shifting interest rate environments as the interest rate on RBI Floating Rate Bonds varies in line with prevailing market interest rates.

(II) Maturity : The maturity for RBI floating rate bonds is 7 years from the Investment date. Premature withdrawal is available only for Senior Citizens

(III) Security : Since these bonds are issued by RBI, they are considered a very safe investment, backed by the central bank's credibility. This adds a layer of security for investors, making RBI Floating Rate Bonds an attractive option for those seeking stability and reliable returns amidst fluctuating market conditions.

Benefits of Investing in RBI Floating Rate Bonds

(I) Dynamic Interest Rates : Investors looking for opportunities to earn attractive interest rates should invest in RBI floating rate bonds. These bonds offer dynamic interest that are in line with prevailing market rates.

(II) Additional Interest above NSC Rate : RBI Floating Rate Bonds offer an additional 0.35% interest rate over and above the prevailing NSC rate.

(III) Security : Since these bonds are issued by RBI, they are considered a very safe investment, backed by the central bank's credibility.

Benefits of Investing in RBI Floating Rate Bonds

The following qualifying requirements must be satisfied for someone to invest in Floating Rate Bonds RBI through RR Finance :

The Bonds may be held by -
(i) a person resident in India, (a) in her or his capacity, or (b) in individual capacity on a joint basis, or (c) in individual capacity on any one or survivor basis, or (d) on behalf of a minor as father/mother/legal guardian (ii) a Hindu Undivided Family (iii) Charitable institutions/Universities
Why Choose RR Finance for Buying RBI Floating Rate Bonds

About RBI Floating Rate Bonds Online, RR Finance provides a smooth investing experience along with individualized support. RR Finance, which has a solid reputation for dependability and openness, guarantees its clients a hassle-free investing experience.

Buy RBI Floating Rate Bonds with RR Finance

Visit our blog to learn about How to Invest in Corporate FD Online in India.

Piyush Prajapati 30 April, 2024

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