10 Things To Know About 7.75% Government Savings Bonds:
1) There is no maximum limit for investment in 7.75% Savings (Taxable) Bonds.
2) The bonds will be issued for a minimum amount of Rs.1,000 (face value) and in multiples thereof.
3) The 7.75% Government Savings Bonds are open to investment by individuals (including Joint Holdings) and Hindu Undivided Families. NRIs are not eligible for making investments in these bonds.
4) Investors can choose between the cumulative and non-cumulative modes for payment of interest.
5) In the cumulative option, interest is paid on maturity of bonds. In the non-cumulative mode, interest is paid on a half-yearly basis.
6) Like bank fixed deposits, the interest income earned from 7.75% Government Savings Bonds is added to one's income and taxed according to the respective slabs.
8) The 7.75% Government Savings Bonds will have a maturity of 7 years carrying interest at 7.75% per annum payable half-yearly. The cumulative value of Rs. 1,000 at the end of seven years will be Rs. 1,703.
9) The bonds are not transferable.
10) The 7.75% Government Savings Bonds are also not tradeable in the secondary market and are not eligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions.
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