InvestorQ : Can you tell me about the 7.75% taxable bonds and is it a good option for me to invest my money in?
Angel dcosta made post

Can you tell me about the 7.75% taxable bonds and is it a good option for me to invest my money in?

Answer
user profile image
Anamika Sodhani answered.
7 months ago


This is a product that could see lot more interest with bank deposit rates falling sharply. With banks cutting deposit rates, there is renewed interest among investors to buy the RBI 7.75% taxable bonds which come with a sovereign guarantee of the government of India. These 7.75% bonds will be taxable and have a lock-in period of 7 years. The bonds have cumulative and non-cumulative interest options. While the 7.75% bonds are available to domestic investors, NRIs are not allowed to invest in these bonds. These bonds have a face value of Rs.100 and investments can be done in multiples of 10 bonds, with no upper limit. This will be a good option for conservative investors but not exactly tax efficient.