How to use the RBI Floating Rate Savings Bond calculator
- Enter the amount you invest, in multiples of ₹1,000.
- Choose your age band. Only people aged 60 or more can encash early.
- Choose how many years you hold the bonds: 7 to maturity, or fewer if you are 60 or more.
- Pick your tax slab.
- Read the payment every six months, the total interest and the comparison with SCSS, NSC and FD.
RBI Floating Rate Bond interest formula
Interest every six months = amount × (NSC rate + 0.35%) ÷ 2
Today the NSC rate is 7.7%, so the bond rate is 8.05%. On ₹10,00,000, that is ₹10,00,000 × 8.05% ÷ 2 = ₹40,250 every six months. The bank counts days as 30/360, so every half-year pays the same amount at the same rate.
RBI Floating Rate Bond interest by amount
At 8.05%, before tax, if the rate stays the same.
| Amount | Every six months | A year | In 7 years |
|---|---|---|---|
| ₹10,000 | ₹403 | ₹805 | ₹5,635 |
| ₹1,00,000 | ₹4,025 | ₹8,050 | ₹56,350 |
| ₹5,00,000 | ₹20,125 | ₹40,250 | ₹2,81,750 |
| ₹10,00,000 | ₹40,250 | ₹80,500 | ₹5,63,500 |
| ₹25,00,000 | ₹1,00,625 | ₹2,01,250 | ₹14,08,750 |
| ₹50,00,000 | ₹2,01,250 | ₹4,02,500 | ₹28,17,500 |
What a rate reset does to your payment
On ₹10,00,000. The rate follows the NSC rate on each reset date, so your payment can go up or down.
| NSC rate | Bond rate | Every six months | A year |
|---|---|---|---|
| 7.2% | 7.55% | ₹37,750 | ₹75,500 |
| 7.45% | 7.8% | ₹39,000 | ₹78,000 |
| 7.7% (today) | 8.05% | ₹40,250 | ₹80,500 |
| 7.95% | 8.3% | ₹41,500 | ₹83,000 |
| 8.2% | 8.55% | ₹42,750 | ₹85,500 |
Early encashment for senior citizens
On ₹10,00,000, encashed at the earliest point for each age band. 50% of the last six months' interest is taken back.
| Age | Earliest exit | Charge | Interest received |
|---|---|---|---|
| 60 to 70 | 6 years | ₹20,125 | ₹4,62,875 |
| 70 to 80 | 5 years | ₹20,125 | ₹3,82,375 |
| 80 and above | 4 years | ₹20,125 | ₹3,01,875 |
RBI Floating Rate Bond rules at a glance
- Rate: NSC rate + 0.35%, reset on 1 January and 1 July. Interest is paid on the same dates. There is no cumulative option.
- Minimum ₹1,000, in multiples of ₹1,000. No maximum. Term 7 years.
- Resident individuals and HUFs can invest. NRIs cannot.
- The bonds cannot be sold, transferred (except to a nominee or heir) or used as security for a loan.
- Interest is taxable at your slab. TDS applies above ₹10,000 a year.
| Period | NSC rate | Bond rate |
|---|---|---|
| From July 2023 | 7.7% | 8.05% |
| From January 2023 | 7% | 7.35% |
| From July 2020 | 6.8% | 7.15% |
Who can buy, where to buy, early encashment, nomination and tax are explained in simple words on the RBI Floating Rate Savings Bonds page.
Frequently asked questions
How is RBI Floating Rate Bond interest calculated?
Each payment is amount × rate ÷ 2, because interest is paid twice a year. At 8.05%, ₹10,00,000 pays ₹40,250 on 1 January and 1 July, or ₹80,500 a year.
What is the RBI Floating Rate Bond interest rate now?
8.05% a year: the NSC rate of 7.7% plus 0.35%. It is reset on 1 January and 1 July each year using the NSC rate in force on that date.
How much will I get in 7 years?
At today's rate, ₹10,00,000 earns ₹5,63,500 in interest over 7 years, and the ₹10,00,000 comes back at maturity. The real figure changes if the NSC rate changes.
Does the calculator include tax and TDS?
Yes. Pick your slab to see interest after tax (with 4% cess). TDS of 10% is cut when the interest is more than ₹10,000 in a financial year.
Can I see the effect of early encashment?
Yes, if you are 60 or more. Pick your age band and the years you hold the bonds. 50% of the last six months' interest is taken off.