Issued by the Government of India, RBI Bonds are one of the most secure bonds to invest in. Investors can purchase RBI Bonds from 12 nationalized banks and 4 private banks, which are HDFC Bank, ICICI Bank, IDBI Bank, Axis Bank, and Stock Holding Corporation of India Limited.
Eligibility to invest in RBI Bonds
Broad Features of RBI Bonds
The maturity of an RBI Bond is 7 years. However, a return can be initiated at any time of the year along with a penalty applied to it.
If you can lock in your investment for 7 years, then investing in RBI Bonds can be a great decision. The lock in for senior citizens varies as per age. It is 6 years for investors between the age of 60 and 70 years, 5 years for 70 and 80 years, and 4 years for those above 80 years.
Why invest in RBI Bonds?
RBI Bonds issued by the Government of India are totally safe and secure. Despite the lock-in period being long, the bonds offer an excellent opportunity to invest in a safe place without risk. The RBI rate of interest, referred to as coupon rates is the primary highlight of this investment bond. This is because it provides zero-credit risk, also offering higher returns than FD accounts and tax-free bonds.