RBI Floating Rate Savings Bonds are government-backed savings instruments that offer Indian investors a secure investment with a competitive interest rate. The interest rate is linked to the prevailing interest rate of the National Saving Certificate (NSC) with a spread of 35 basis points
As regards maturity, RBI said the minimum tenor of a GSL transaction would be one day and the maximum would be the maximum period prescribed to cover short sales.
You may want to invest some money in fixed income products to capitalise on the higher interest rate environment. Here are some options that an individual can look for investment and earn higher returns. It is important for an investor to understand to know his/her risk profile before making debt investments.