Friday, July 11, 2025

Creating liberating content

The Reserve Bank on Friday said it has imposed a

Elon Musk meets with Indian Prime Minister Narendra Modi at

Related News

US stocks opened lower on Friday, pulling major indexes off their record highs from the previous session, as investor sentiment turned cautious following President Donald Trump’s fresh tariff announcements.The S&P

The Reserve Bank on Friday said it has imposed a Rs 4.88 lakh penalty on HDFC Bank for contravention of certain norms relating to foreign investment in India while granting

This Optical illusion challenges the viewer to find a set of skis cleverly disguised in a beach scene filled with red-and-white striped chairs and umbrellas. At first glance, everything looks

Elon Musk meets with Indian Prime Minister Narendra Modi at Blair House in Washington DC, USA on February 13, 2025. Anadolu | Anadolu | Getty Images Tesla will open a

TCS had previously disclosed in April that salary increases would be postponed due to business uncertainties. (AI image) Employees of Tata Consultancy Services (TCS) will have to wait a little

Ghee coffee is a traditional Ayurvedic drink that’s gaining popularity for its potential health benefits. This unique blend of coffee, ghee, and sometimes coconut oil or spices, offers a range

Trending News

TCS had previously disclosed in April that salary increases would be postponed due to business uncertainties. (AI image) Employees of Tata Consultancy Services (TCS) will have to wait a little

‘The Best You’ features India’s comedy queen, Bharti Singh, who shares her story resilience and reinvention Klook, Asia’s leading platform for travel experiences and services, launched its new campaign titled

Britain’s economy contracted for the second consecutive month in May, dealing a blow to finance minister Rachel Reeves as she navigates a shaky domestic recovery and heightened global uncertainty. Official

Slow US-China trade deal may push Trump’s tariff deadlines Trade deals between the US and China are moving at a pace slower than expected, which may lead to extensions of

Access Denied You don’t have permission to access ” on this server. Reference #18.adf5d217.1752215691.16ea1cd4 Source link

Tesla’s entry into India comes at a time when the EV maker is facing reduced sales in Europe and China. (AI image) Elon Musk-led Tesla is set to open its

Investors shift to RBI floating rate bonds as fixed deposit rates slide

Word Count: 659 | Estimated Reading Time: 4 minutes


Investors shift to RBI floating rate bonds as fixed deposit rates slide

With fixed deposit rates steadily declining due to Reserve Bank of India (RBI) rate cuts and abundant liquidity, risk-averse investors are turning their attention to the RBI’s floating rate savings bonds. These bonds currently offer attractive annual yields of up to 8.05% for a 7-year tenure, providing a more lucrative and safer alternative to traditional fixed deposits.“Corporate and bank deposit rates have come down in line after the rate cuts announced by RBI,” Anup Bhaiya, MD and CEO of Money Honey Financial, a Mumbai-based distributor told ET. “However, since the RBI floating rate deposit rates continue to be unchanged at 8.05%, there is higher demand for these deposits from retail investors.”These bonds, issued by the central bank on behalf of the government, are considered highly safe and offer a 35-basis-point premium over returns promised by the National Savings Certificate. Currently, the bonds provide an interest rate of 8.05%, paid semi-annually, with the rate reset every six months. Interest income from these bonds is taxable.Despite their safety, liquidity remains a challenge. “There is no premature withdrawal option, and these bonds cannot be used as collateral for borrowing, and hence, investors must be sure to buy and hold them until maturity,” explained Harshvardhan Roongta, CEO of Roongta Securities. The minimum investment amount is ₹1,000, with no upper investment limit.Following RBI’s cumulative 50 basis points rate cut since February, both banks and deposit-taking non-bank lenders have reduced deposit rates by 25 to 100 basis points. The current 10-year government bond benchmark yields 6.22%. For comparison, Bajaj Finance, rated AAA, offers 7.25% for deposits between 24 to 60 months, while SBI pays 6.3% for deposits spanning 5 to 10 years. Senior citizens can earn 50 to 100 basis points more.Investors can purchase these bonds through the RBI retail direct website, distributors, or private bank websites. “These bonds help you earn a lucrative 180 basis points over the 10-year benchmark government bond, while over fixed deposits and corporate deposits these bonds help you earn around 65-150 basis points more,” said Vikram Dalal, Managing Director of Synergy Capital.





Source link

Sign In

Welcome ! Log into Your Account