How to Buy RBI Floating Rate Bond?

RBI Floating Rate Bonds are government-backed debt instruments. These are becoming one of the smartest choices for investors who want safe, stable, and inflation-adjusted returns. If you are tired of fixed deposits giving limited growth, this option gives you returns that move with interest rates.

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What are RBI Floating Rate Bonds?

RBI Floating Rate Savings Bonds (FRSB 2020) are government securities that are issued by the Reserve Bank of India.

You lend money to the Government of India
In return, you earn interest every 6 months
The interest rate is not fixed; it changes periodically
The interest is linked to the National Savings Certificate (NSC) rate + 0.35% spread.

How to Buy RBI Floating Rate Bonds?

You can invest in these government bonds, in the following two ways:

Online Method

You can buy bonds through:
- Net banking (SBI, HDFC, ICICI, Axis, etc.)
- RBI Retail Direct portal
Steps to purchase the RBI Floating Rate Bonds:
- Log in to your bank account
- Go to Investments → RBI Bonds
- Enter investment amount
- Add nominee details
- Confirm payment
*Your bond is issued digitally after confirmation.
Offline Method
- Visit a bank branch
- Fill the application form
- Submit KYC documents
- Pay via cheque or account debit

Where Can You Buy the RBI Floating Bonds?

You can invest in the RBI floating rate bonds through:

SBI Bank
HDFC Bank
ICICI Bank
Axis Bank
Other authorised banks

Steps to Invest in these Floating Rate Bonds

Here are the steps to follow for buying the RBI floating rate bonds:

Choose platform (bank or RBI portal)
Complete KYC (PAN, Aadhaar)
Fill the application form
Select investment amount
Make payment
Receive bond confirmation

Eligibility Criteria to Invest in RBI Floating Rate Bond

The following category of investors can invest in this growing best investment option:

Resident Indian
Individual/ Joint Investors
Minor (Authorised guardian)
Hindu Undivided Family (HUF) is allowed
NRIs cannot invest

Documents Required to Buy the RBI Floating Rate Bonds

You have to keep these documents ready:

PAN Card
Aadhaar / Address Proof
Cancelled cheque
Bank account details

Key Features of RBI Floating Rate Bonds (2026)

Feature	Details
Interest Rate	8.05% p.a. (Jan - June 2026)
Interest Reset	Every 6 months
Tenure	7 years
Minimum Investment	₹1,000
Maximum Limit	No upper limit
Safety	Sovereign guarantee (Government-backed)
Interest Payment	Semi-annual (Jan & July)
Transferability	Not transferable

Taxation on RBI Floating Rate Bonds

Interest Income: Fully taxable
Tax Slab: As per your income
Tax Deduction at Source (TDS): Applicable (if limit exceeded)
Capital Gains Tax: Not applicable

Conclusion

RBI Floating Rate Bonds are one of the safest investment plans in India in 2026. They offer stable income, government security, and protection against rising interest rates. However, they are not for everyone, low liquidity and taxable returns make them suitable mainly for long-term investors. If used smartly as part of a diversified portfolio, they can bring balance, stability, and predictable income to your financial plan.

Frequently Asked Questions

What is the current RBI bond interest rate in 2026?

The current interest rate of the RBI Floating Rate Bond is 8.05% per annum for Jan - June 2026.
Can I buy RBI bonds online?

Yes, you can buy the RBI floating bonds via net banking or RBI Retail Direct platform.
Is there any risk in RBI bonds?

The RBI floating rate bonds are of very low risk, as they are government-backed.
Are RBI bonds better than FD?

The RBI floating bonds can give higher returns but have lower liquidity.

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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).