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Sovereign Guarantee by Government of India: Unlike other fixed income products like bank FD's, debt funds etc that carry a credit risk, G-Secs are guaranteed by Govt. of India.
Tenure Range: You can start an RD account for a pre-defined period of 1 year to 10 years.
Better Returns compared to FD’s Unlock in attractive interest rates with upto 40 years, unlike bank FDs that have a maximum tenure of 10 years.
No TDS No tax deduction at source like bank FDs. Pay taxes as per your income tax slab at end of the financial year.
Only resident individuals and Hindu Undivided Families (HUF) are eligible to invest in these bonds. Individuals can apply either in single or jointly for these bonds. One can invest as a guardian in the name of a minor.
Payment of Interest: Interest due on these bonds will be paid on a half-yearly basis
Your capital is protected as investment bonds are a less risky investment option.
Although lower as compared to equity, returns on investment bonds are assured.
Tax Free investment bonds are one of the best options for you if you fall in the higher tax bracket.