The Reserve Bank of India (RBI) issued RBI Savings Bond are the ideal debt investment option for investors who are looking to earn higher and fixed interest on the lump sum investment. EldersWealth, being one of the most reliable wealth management companies in Bangalore, has been recommending senior citizens to invest in RBI Savings Bonds as they can invest a sum received from annuity or PPF in these bonds to earn fixed rate of return without having to deal with any credit risk 

RBI Floating Rate Savings Bond launched in 2020 offer an interest rate of 7.15 %. This interest rate will be reset every six months starting from January 01, 2021. Which means the coupon rate payable is reset on 1st January 2021 and thereafter, every 1st July and 1st January.  This rate is computed as 0.35% (i.e., 35 bps) over the prevailing interest rate of National Savings Certificates (NSC) and reset on the same basis. 

Though interest income from bonds investment is taxable, they offer relatively higher returns than traditional bank deposits. If the total interest income exceeds ₹40,000 in a year, that amount is subject to TDS deduction. 

EldersWealth aims to help its customers build a solid portfolio where the get optimum returns for their hard-earned money.  RBI Savings Bond is probably the best investment option in the market today for those wishing to invest huge sum. 

The investor holds these bonds in a Bond Ledger account in an electronic form. These bonds are transferable only under the special circumstance of death of the primary account holder.  RBI Savings Bonds are neither tradable in the secondary market and nor can be used as a collateral against loans.

RBI bonds come with a lock-in period of seven years. However, senior citizens can request early redemption after the lock-in period of 6 years under certain special conditions. Those falling between the 70-80 years age bracket can request premature withdrawal after 5 years and individuals above the age of 80 can request the same after 4 years.