RBI Floating Bond at 8.05%: Is Your FD Losing?
The RBI Floating Rate Savings Bond still pays 8.05% interest per year. It automatically stays 0.35% above the NSC rate. If you have spare savings sitting in a bank FD earning less, this bond could earn you more — safely.
₹10 lakh in this bond earns ₹80,500/year — that's 268 cups of chai monthly more than a typical 7% FD.
Your RBI savings bond still pays this — more than most bank FDs
Key Takeaways
Compare your current FD rate against 8.05% — if your FD earns less, check if shifting idle savings makes sense.
Open an RBI Floating Rate Savings Bond account through your bank's net banking or by visiting a branch — no broker needed.
Note the 7-year lock-in before investing — senior citizens (60+) get early exit options starting year 4, so plan liquidity carefully.
The RBI Floating Rate Savings Bond still pays 8.05% interest per year. It automatically stays 0.35% above the NSC rate. If you have spare savings sitting in a bank FD earning less, this bond could earn you more — safely.
Here's what happened: RBI Floating Rate Savings Bond interest remains at 8.05% after the Finance Ministry kept NSC rate unchanged at 7.7%.. The bond's rate is always set at NSC rate plus 0.35%, so it automatically adjusts every six months if NSC rate changes.. This rate beats most major bank FDs currently offering 7%–7.5% for similar tenures, with sovereign-level safety..
What you should do: Compare your current FD rate against 8.05% — if your FD earns less, check if shifting idle savings makes sense.. Open an RBI Floating Rate Savings Bond account through your bank's net banking or by visiting a branch — no broker needed.. Note the 7-year lock-in before investing — senior citizens (60+) get early exit options starting year 4, so plan liquidity carefully..
Interest is paid every 6 months (January and July) directly to your bank account — making this bond a reliable passive income source for retirees who need regular cash flow without market risk.
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- [1]“Has RBI floating bond rate of 8.05% been changed? Why it is still one of the best fixed income investments” Wealth-Economic Times · 2 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.