RBI Floating Rate Savings Bond interest rate for July-December 2025 announced

RBI Floating Rate Savings Bonds Interest Rate July-December 2025: The interest rate for Reserve Bank of India’s floating rate savings bonds for the July to December 2025 period will remain unchanged at 8.05%, the RBI said on July 1.

"Accordingly, the coupon rate on FRSB 2020 (T) for the period July 01, 2025 to December 31, 2025 and payable on January 01, 2026 remains at 8.05% (7.70%+0.35%), unchanged from the previous half-year,” RBI said in a release on July 1.

As per the structure of the RBI floating rate savings bond, the interest rate can be revised every six months, based on the changes in the NSC interest rate. If the NSC rate rises, the bond’s rate will increase with it, and if the interest rate for NSC falls, the bond’s rate will change accordingly.

What is the RBI Floating Rate Savings Bond?

The floating rate savings bond is an RBI-backed savings instrument for retail investors who seek a safe and relatively stable investment option as compared to market-linked investments.

These bonds offer a variable interest rate, which can be adjusted every six months as per the interest rate environment. The minimum investment in these bonds is usually low, at ₹1,000, to make it accessible to a wide range of investors. Further, there is no upper limit on the investment. The bond has a fixed tenure of seven years, and premature withdrawals are not permitted.

The interest on the bonds is paid out twice a year: on January 1 and on July 1. Investors can buy these bonds through designated banks and the Stock Holding Corporation of India Ltd (SHCIL), and the holdings are in electronic form, stored in Bond Ledger Accounts (BLA).

The interest received on these bonds is completely taxable, and investors can’t claim tax deductions on these investments. Additionally, if the interest earned on these bonds exceeds ₹10,000 in a financial year, tax deducted at source (TDS) will be applicable.