Narendra Modi led government today officially announced the launch of new savings taxable bonds scheme with 7.75% return rate. The new scheme with reduced return finds interest among risk-averse investor class as it features sovereign rating.
Investors can subscribe for the scheme beginning January 10 this year with a minimum amount of Rs. 1000. All resident national individuals, HUFs can subscribe for the scheme which also allows joint holding. Nonetheless, NRIs are not allowed to invest in these taxable bonds.
Investors will be issue the savings bonds at par i.e. for Rs. 100 and a minimum subscription amount is Rs. 1000 and in multiples thereof. There is no upper cap for investment in these bonds. As specified by the Ministry of Finance, the bonds shall be issued in demat or bond ledger account only.
Also, as against the erstwhile 8% GOI savings bonds the maturity of the new bonds scheme shall be of 7 years with interest rate of 7.75% p.a paid on an half-yearly basis.