Government of India Savings Taxable Bonds 7.75%: Should I invest now?

Government of India Savings Taxable Bonds 7.75%:  Should I invest now? by Suresh KP

7.75% GOI Savings (Taxable) Bonds review Interest rates have been falling in the last few months. Investors who depend majorly on fixed income are worried these days.

Here comes Government of India Savings (Taxable) Bonds.

GOI Saving Bonds 2018 are still open now where one can invest and get 7.75% interest per annum.

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Features of RBI Bond

Item	Details
Instrument	7.75% Savings (Taxable) Bond, 2018
Who can Invest?	Resident Individuals (including Joint Holdings) and Hindu Undivided Families (HUF).
	NRIs are not eligible to invest.
Issue Price	At par – i.e. Rs 1,000 for every Rs 1,000 (nominal) face value
Minimum Amount	Rs 1,000 (Face value) in multiples thereof
Maximum Amount	No maximum limit
Maturity/ Repayment of Principal	7 years (lock-in-period) from the date of issue. Premature encasement shall be allowed to individuals who are 60 years and above subject to minimum lock-in-period.*
Interest Rate Option available	Non-cumulative option: Half-yearly interest payouts (1st Aug & 1st Feb) of Rs 38.75 per Rs 1,000 Face value
	Cumulative option: Cumulative value of Rs 1,000 at the end of seven years will be Rs 1,703 (based on half-yearly compounding)
Tax treatment	Interest on these bonds will be taxable under the Income-tax Act, 1961
TDS on interest	Non-cumulative option: At the time of making payment to investors
	Cumulative option: On the interest portion, at the time of payment of the maturity proceeds
Transferability/Liquidity	Not Transferable, Not Tradeable in the secondary market
Eligible for Collateral	Not eligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions
Nomination Facility	Available (Form B)
Form of Holding	The Bonds will be issued only in the demat form and held at the credit of the holder in an account called Bonds Ledger Account (BLA),opened with the receiving bank or SHCIL. A Certificate of Holding will be issued to the holder/s of Bonds held to the credit in BLA.
Risk	100% risk free investment option

https://www.hdfcsec.com/rbi-bond

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