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RBI Floating Rate Savings Bonds offer a rate that tracks NSC + 0.35%, currently 8.05% p.a. Reset every 6 months. 7-year tenure. No maximum deposit limit, unlike SCSS which caps at ₹30L.
Government benefits · Senior Citizen
RBI Floating Rate Savings Bonds: when to choose over SCSS
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Provisions
RBI Act | FRSB 2020 (T) | Linked to NSC rate + 0.35%
Analysis
When to choose FRSB over SCSS: • Corpus above ₹30L (SCSS maxed out), FRSB takes the overflow • Expecting interest rates to rise, FRSB floats upward • Don't need quarterly income (FRSB pays semi-annually, non-compounding) When to choose SCSS over FRSB: • Expecting rates to fall (SCSS locks in current rate for 5 years) • Need quarterly cash flow • Want Sec 123, Income-tax Act 2025 (old Sec 80C) deduction (FRSB has NO Sec 123 (old Sec 80C) benefit; SCSS does)
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