Issued by Government of India
7.75% Savings (Taxable) Bonds, 2018
For Individuals & HUFs
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.
Rs 1,000 (Face value) in multiples thereof
No maximum limit.
100% Risk Free Investment option.
The interest earned under this scheme is taxable under the Income Tax Act, 1961, according to the relevant tax status of the Bondholder.
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)
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.
*Premature encashment for senior citizens:
Age bracket: 60 – 70 years; lock-in-period of 6 years from the date of issue Age bracket: 70 – 80 years; lock-in-period of 5 years from the date of issue Age bracket: 80 years & above; lock-in-period of 4 years from the date of issue