Earn 8% p.a. returns with GOI Savings Bonds

GOI Savings Bonds

GOI Savings Bonds are issued by Reserve Bank of India that provide you safety plus returns that are fixed and assured in nature.

While returns are important it is vital that the investments are also safe over a long period of time.

GOI 8% Savings (Taxable) Bonds, 2003 is one such investment option.

Hence it makes utmost sense to lock in your investments at a return of 8% per annum compounded on a half yearly basis thereby reducing the re-investment risk for the next 6 years in these times of falling interest rates.

The 8% Government of India Savings (taxable) bonds, 2003 is a bond issued by the Reserve Bank of India (RBI) commencing April 21, 2003. The bonds are available for purchase by individuals on tap i.e. you can buy them as and when required. As the name indicates, the rate of interest offered on the bond is 8% per annum. Interest is taxable in the hands of the investor. Since bonds are issued on behalf of the Government of India, it is the safest investment any investor can look for. However, interest on the bonds is taxable and it has a lock in of six years, which makes the bond less favourable over other investment options.

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Features of GOI Savings Bonds

• The bonds are open to investment by individuals (including joint holdings) and Hindu undivided families/ charitable institutions/universities. There is no investment ceiling on these bonds by these investors. However, nonresident Indians (NRIs) are not eligible to invest in these bonds.


• The bonds will be issued at par and for a minimum amount of Rs. 1,000 (face value) and in multiples thereof.


• The bonds will have a maturity of six years, carrying an interest at 8% per annum. Interest on non-cumulative bonds will be payable at half-yearly intervals. Interest on cumulative bonds will be compounded with halfyearly rests and will be payable on maturity along with the principal. The cumulative value of  Rs.1,000 at the end of six years will be Rs. 1,601

Download Form

You may download the application form for GOI Savings Bonds from here.