You can buy Floating Rate Savings Bonds, 2020 (Taxable), through either an RBI-authorized receiving office (usually a participating bank branch) or the RBI Retail Direct portal. The investment is recorded electronically, cannot be traded on an exchange, and each subscription has its own seven-year maturity schedule.
The two routes lead to the same Government of India security. Choose the bank route if you want branch-assisted paperwork; choose Retail Direct if you prefer an online account and digital servicing. Before paying, verify the current coupon, eligibility, minimum amount, payment window and any branch-specific requirements because these details can change.
As an Amazon Associate I earn from qualifying purchases.
What you are buying
Floating Rate Savings Bonds, 2020 (Taxable), commonly abbreviated FRSB 2020 (T), are issued by the Government of India. Your investment is held electronically rather than as a paper certificate. A bank or other receiving office records it in a Bond Ledger Account (BLA) and issues a Certificate of Holding; a Retail Direct purchase is maintained in your RBI Retail Direct Gilt (RDG) account.
Recommended Free Tools
| Feature | What the scheme provides |
|---|---|
| Issuer | Government of India |
| Tenure | Seven years from the date of each subscription |
| Tradability | Non-tradeable; it cannot be sold on a stock exchange |
| Interest frequency | Semi-annually, generally on January 1 and July 1 |
| Coupon method | National Savings Certificate rate plus 35 basis points (0.35 percentage points), reset every six months |
| Cumulative option | Not available; interest is paid rather than compounded inside the bond |
| Principal repayment | At scheduled maturity; interest stops accruing after maturity |
RBI describes government securities as free of credit risk, but that does not make every government security liquid. For this bond, the practical risk is that your money is committed until maturity except for the limited senior-investor redemption facility described below.
#1 Best Overall
Check these points before you apply
Confirm the applicable coupon
The rate is not fixed for the full term. It is reset for each six-month period at the prevailing National Savings Certificate (NSC) rate plus 0.35 percentage points. RBI announced 8.05% for July 1 through December 31, 2023, calculated from a 7.70% NSC rate plus 0.35 percentage points. That is a historical rate, not a 2026 quotation. Check the RBI notice covering the half-year in which your interest will be paid before subscribing.
Verify eligibility and the amount you may subscribe
Use the current instructions on the Retail Direct portal or ask the receiving office to confirm who may subscribe, the minimum subscription, permitted multiples and any maximum. The Retail Direct FAQ published November 12, 2021 lists minimums for other security types; those figures do not establish an FRSB minimum. Do not rely on a number copied from an older article or a different government-security product.
Plan for the holding period
Each payment has its own maturity date measured from that subscription. Because the bond is non-tradeable, you cannot create liquidity by placing a sell order. If you may need the principal earlier, read the age-based premature-encashment rules before applying.
PC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchUnderstand the tax treatment
Interest is taxable under the applicable income-tax rules. RBI’s operational guidance says tax is deducted at source when interest is paid unless a relevant exemption under the Income Tax Act has been obtained and declared in the application. The guidance does not determine your personal tax liability, slab, return filing or eligibility for an exemption; obtain advice for your circumstances.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
Buying through an authorized bank or receiving office
RBI accepts FRSB applications through authorized Receiving Offices. These include State Bank of India, nationalized banks, certain private-sector banks and other entities authorized by RBI. The June 27, 2022 operational-guideline list names Axis Bank, ICICI Bank, HDFC Bank, IDBI Bank and Stock Holding Corporation of India Limited, in addition to SBI and nationalized banks. That list is a scheme reference, not a live branch locator. A bank may not accept subscriptions at every branch, so confirm the exact branch and current subscription window first.
Step-by-step branch procedure
- Choose and verify the office. Contact the branch or other receiving office and ask whether it is currently accepting FRSB 2020 (T) applications, whether an appointment is required, which identity and bank documents it wants, and which payment modes it accepts.
- Obtain the application form. The operational guidance refers to Form B. Complete the investor details, holding instructions, nominee information and declarations, including any tax-exemption declaration that genuinely applies to you.
- Prepare payment. The guidance permits cash up to ₹20,000, demand draft, cheque or an electronic method accepted by that office. A cheque or draft is subject to realization; ask how the office dates the subscription and when funds must be available.
- Submit the form and documents. Give the completed form, payment and requested KYC or bank details to the authorized office. Keep a stamped acknowledgement or other proof showing when the application was tendered.
- Wait for realization and account recording. After payment is realized, the office opens or updates your Bond Ledger Account. RBI guidance says a Certificate of Holding is normally issued within seven days of tendering the application; ask the office how it will be delivered or collected.
- Check the record. Confirm your name, holding amount, nominee, subscription date and payment details on the Certificate of Holding or the office’s statement. Report errors promptly to the office maintaining the BLA.
What the branch route is good for
- Face-to-face help with forms and document checks.
- A named office responsible for BLA servicing and the Certificate of Holding.
- Payment choices that may include cheque, draft or cash within the stated limit, subject to branch acceptance.
RBI’s guideline discusses remuneration and brokerage arrangements for receiving offices, but it does not establish a customer charge for every branch or transaction. Ask for any customer-facing fee before submitting payment.
Buying through the RBI Retail Direct portal
RBI enabled Retail Direct subscriptions to FRSB 2020 (T) in an October 23, 2023 release. The online route starts with an RDG account. RBI’s FAQ says an eligible retail investor can open one account, either singly or jointly with another eligible retail investor. The account is free to open and maintain. The FAQ also describes access for eligible non-resident retail investors, subject to the Foreign Exchange Management Act and related eligibility conditions.
Set up the RDG account
- Open the official Retail Direct account-registration page. Enter your PAN and contact details as requested.
- Complete KYC. Provide the identity and address information required by the portal and finish its verification process.
- Link an Indian-rupee savings account. The linked account is used for funding purchases and receiving amounts due under the account’s settlement instructions.
- Register a nomination. Add the nominee details requested by the portal and review them for accuracy before completing registration.
- Activate and secure the account. Save your login and transaction details securely, and use only the current portal help pages for screen labels because the detailed FAQ was published in 2021.
Submit an FRSB subscription online
RBI’s general Retail Direct purchase description says an investor selects a primary-market security, enters a bid amount, funds the purchase through the linked banking options before the window closes and receives an allotment based on the applicable result. FRSB subscriptions were added later, so do not assume every screen or auction field is identical to the examples in the older FAQ. After signing in, use the portal’s current FRSB 2020 (T) instructions, review the issue period and rate information shown there, enter the amount requested, authorize the linked-bank payment and retain the confirmation.
The portal’s live help material controls if it differs from the 2021 FAQ. In particular, confirm the opening and closing times, whether the issue is presented as a specific subscription window, how funds are blocked or debited, and when an unsuccessful or partially allotted amount is released. Do not wait until the final minutes to complete KYC or funding.
After an online purchase
Check the RDG account’s transaction and holding records for the subscription date, amount, allotment and maturity information. Keep the confirmation and periodic statements with your tax records. For a failed payment, missing allotment or incorrect personal detail, use the portal’s support channel rather than starting a second subscription before the first transaction is resolved.
Bank versus Retail Direct: which route fits?
| Decision point | Authorized receiving office | RBI Retail Direct |
|---|---|---|
| How you apply | Submit Form B and an accepted payment method to a currently authorized office. | Open an RDG account, complete KYC, link a rupee savings account and follow the current online FRSB flow. |
| Where the holding is maintained | Bond Ledger Account maintained by the receiving office; Certificate of Holding normally issued within seven days after tendering. | RBI Retail Direct Gilt account with online transaction and holding records. |
| Human assistance | Branch or office staff handle the application and BLA servicing. | Portal help and RBI Retail Direct support handle account and transaction issues. |
| Account fee | Any customer-facing charge depends on the office; confirm it directly. | RBI’s FAQ says the RDG account is free to open and maintain. |
| Main practical constraint | You must find a branch that currently accepts subscriptions and meet its document and payment rules. | You must complete online KYC, maintain access to the linked bank account and meet the portal’s live deadline. |
Neither official source establishes that one route is universally faster, cheaper for every transaction or better for every investor. The security, coupon formula, maturity and redemption rules are scheme terms; the difference is how you submit and service the holding.
How interest and maturity work
Six-month resets
At each reset, the coupon equals the prevailing NSC rate plus 35 basis points. A change in the NSC rate therefore changes the next six-month coupon, while interest already paid is not retroactively recalculated. Check the applicable RBI announcement rather than extrapolating from a prior period.
Rank #4
Payment dates and no accumulation option
Interest is paid twice a year, generally on January 1 and July 1. The product does not offer a cumulative option, so you receive periodic interest instead of adding it automatically to principal. The payment schedule may matter for cash-flow planning and for the year in which interest enters your taxable income.
Final repayment
At the scheduled maturity, the principal is repaid. RBI states that interest does not accrue after maturity, so update your records and banking instructions before the due date and investigate any missing payment promptly through the office or portal that holds the investment.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Early redemption: narrow eligibility and a penalty
Premature encashment is not a general withdrawal feature. RBI’s operational guidelines limit it to eligible senior investors and impose an age-based lock-in:
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →| Age on the relevant basis | Minimum holding before premature encashment |
|---|---|
| 80 years or older | Four years |
| 70 to under 80 | Five years |
| 60 to under 70 | Six years |
Payment is made on the next applicable interest-payment date, not immediately when you submit the request. A penalty equal to 50% of the interest due for the last six-month period is recovered. You cannot partially encash an individual subscription. For a joint holding, at least one investor must satisfy the age criterion.
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
Because the bond cannot be traded, these rules are the main route to an earlier exit for qualifying investors. If you are below the stated age thresholds or need unrestricted access to the money, this product may not match that objective.
Common mistakes and how to avoid them
Using an old interest rate
A quoted rate from 2023, or from any previous half-year, is not a promise for the current period. Read the RBI notice that covers the payment period relevant to your subscription.
Assuming every listed bank branch is eligible
Scheme documents name categories and institutions, but they do not provide a live branch-by-branch acceptance list. Call the branch before travelling and ask for written confirmation of the current process if practical.
Confusing a government bond with a liquid deposit
The government issuer addresses credit risk, not access to cash. Non-tradeability, the seven-year schedule and restricted senior redemption mean you should not invest funds earmarked for near-term expenses.
Relying on an unrelated minimum-investment figure
Minimums shown in the Retail Direct FAQ for treasury bills, dated securities or other products do not establish the FRSB minimum. Confirm the amount in the live FRSB instructions or with the receiving office.
Missing the online funding deadline
Retail Direct instructions require funding through linked banking options before the window closes. Complete KYC and test access early; a payment initiated after the deadline may not count for that issue.
Ignoring tax withholding records
Retain interest statements and TDS information. If you claim an exemption, ensure the required declaration was actually obtained and submitted; do not assume that selecting a box removes all tax obligations.
Do these 3 things before closing this tab:
1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteQuick Recap
A practical decision checklist
- Read the current RBI coupon announcement for the applicable six-month period.
- Confirm that you are eligible and verify the current minimum subscription and permitted increments.
- Decide whether you can leave the money invested until the scheduled maturity.
- If you may qualify for early redemption, check the age lock-in, next payment-date settlement and 50% last-period-interest penalty.
- For a bank purchase, verify the office, Form B version, documents, payment modes and any customer charge.
- For Retail Direct, complete RDG registration, KYC, savings-account linking and nomination before the issue window.
- Save the Certificate of Holding or RDG transaction record and check the subscription date, amount, nominee and maturity details.
- Keep interest and TDS records for your tax return and monitor each semi-annual payment.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
