Saving Bonds and its benefits.
                     SAVING BONDS AND ITS BENEFITS
What is a Savings Bond?
• A Savings Bond is a bond where the limits for investment are set 
low so that people can invest easily. 
• Instead of a high limit for entry, the Savings Bond has a low entry 
threshold to make it affordable to anyone.
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Saving Bonds In India
• In India, the Government introduced an 8% Savings Bond in 2003 
and replaced it with a 7.75% bond in 2018. 
• The minimum investment required for this bond is Rs. 1,000 which 
makes it affordable for many investors. 
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Features of the Savings Bond
• The bond is open for investment to all resident individuals, and 
Hindu Undivided Families. 
• You can apply online or offline for the bonds. Several banks provide 
this investment facility in their branches. 
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Features of the Savings Bond
• The Savings Bond is issued in a Demat form. It is credited to the 
Bond Ledger Account of the investor. 
• The bank gives a certificate of holding to the investor as proof of the 
investment.
• The interest on the Savings Bond is payable every six months. 
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Features of the Savings Bond
• The redemption period for these bonds are 7 years. However, a 
premature exit is allowed for people of age above 60 years.
• These bonds are not transferrable to another person. They cannot 
be used as collaterals for loans.
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Benefit Of Saving Bonds
• Low minimum investment
– The 7.75% Savings Bond has a minimum investment of Rs. 1,000. This makes 
the Savings Bond a very attractive investment for all types of investors.
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Benefit Of Saving Bonds
• Online and offline application
– To ensure the application to such bonds is easy for all types of investors, the 
Government has provided two options for investments i.e. both online and offline.
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Benefit Of Saving Bonds
• No maximum limit
– To allow investors to earn from the Savings Bond, the Government has placed 
no maximum limit for investment in these bonds.
–  This is a good form of passive investment for those who have funds to invest. 
The Savings Bond offers an excellent rate of interest.
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Benefit Of Saving Bonds
• Choice of income or capital appreciation
– An investor can choose to receive interest income or choose the cumulative 
option and receive interest and principal on maturity.
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