7.75% Savings Bond Scheme 2018 by Central Govt (RBI Bonds)

By | January 9, 2018

Recently the central has announced the new bond scheme (7.75% Savings Bond Scheme 2018) in this auspicious new year of 2018. The scheme comes with a notification to change the currently running on 8 percent of saving interest scheme. There issued that the maturity duration will be also changed with along with news terms and guidelines. As per the details the scheme is going to get effect from 10th of January in 2018. Investors those who are seeking to purchase the bonds can finalize their investments. The interest offered in the scheme can be comparable with other running small savings schemes in the market. But how much it may benefits to its customers? Also how many of people will appreciate it or will it bring any new turn over at market? To know the exact answer you need to check out the full details about the scheme which i will be discussing below here.

7.75% Savings Bond Scheme 2018:

Central govt. has launched a 7.75% Savings Bond Scheme 2018. The Savings Bonds scheme is a taxable Bonds and these bonds will have minimum 7 years maturity period. Now it will replace on 8% Savings Bond Scheme and another name of the scheme is RBI Bonds Scheme.

Pradhan Mantri has started this bond Scheme for subscription from 10th January, 2018. GOI (Government of India) has launched the scheme with the minimum budget of RS. 1000 and there are no limits for invest this scheme. So investors will invest on this scheme with their maximum amount but they cannot invest with the less of Rs. 1000 amount.



Investors make a choice their interest payment mode as cumulative or non cumulative mode. If they choose cumulative then will get interest after the maturity period or if investors choose non-cumulative then they will get their interest payment on the half yearly basis.

Features Of The 7.75% Savings Bond Scheme 2018:

Following are the list of features that you might need to know about this bond scheme. The features containing in the scheme is truly amazing and perfect in every aspects as it will put the effect towards the development.

  • The scheme is not transferable which means they cannot be transferred.
  • The scheme will allow the issue only at face to face value at 1000 with in this multiple thereof.
  • In the initial stage government haven’t set any other scheme of the upper limit of this investment. And any rupee of the amount investor can be saved on the bond scheme.
  • Invidually everyone can invest on the 7.75% savings bond scheme of central govt. including UHF (Undivided Hindu Families) and Joints holdings.
  • Without Indian any other countries citizens cannot be allowed to make invest on these bonds scheme.
  • Only 7 years are the maturity period of these bonds scheme and with the 7.75% tax rate per annual. It is payable on the basis of half yearly. After completion of 7 years which means the end of the maturity period your amount (Rs. 1000) than will automatically convert in Rs. 1703.
  • Investors can choose their interest payment between the cumulative or non- cumulative modes.
  • If investors will choose the cumulative mode then they can receives their interest on the maturity period or if the investors choose non- cumulative mode then they can get their interest on the half yearly basis.
  • Within the Wealth Tax Act, 1957, the bond savings scheme make Wealth Tax of taxable bonds exempted.
  • In any other secondary market investors cannot sell bonds scheme because these scheme are non-tradable.
  • To get loans on these bonds scheme as collateral investors cannot use any other financial institution, banking institution or non-banking finance company.

Regarding the topic as mentioned in the post if any investor who desires to make any such investements rather than private sectors than can go for this scheme. The savings bond scheme introduced by the government is truly a correct step with its certain changes which is trustful. The interest offered with the said maturity level is approachable and appreciable for the customers to have a benefit if they intend to do any such high investments by keeping in mind the exclusive terms and conditions.

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