RBI Retains Interest Rate at 8.05% on Floating Rate Savings Bonds for July–December 2025. Banking & Finance | Dated: 04 Jul 2025 On July 1, 2025, the Reserve Bank of India (RBI) announced that the interest rate on its Floating Rate Savings Bonds, 2020 (Taxable) [FRSB 2020 (T)] will remain unchanged at 8.05% for the July 1 to December 1, 2025 period. 🎯 Key Highlights: - The interest payment for the July–December cycle will be credited on January 1, 2026. The current rate of 8.05% is pegged 0.35% higher than the National Savings Certificate (NSC) rate, which currently stands at 7.70%, offering retail investors a slightly higher return. - The FRSB interest rate is reset every six months based on changes in the NSC rate. This semi-annual revision ensures that investors benefit from future increases in the benchmark NSC interest rate, while the rate remains fixed for each declared period. - Floating Rate Savings Bonds (FRSBs) are government-backed fixed-income instruments, designed specifically for retail investors who seek long-term capital safety and predictable returns. These bonds are not tradable and cannot be used as collateral for loans, adding to their secure nature. 💡 Other Important Facts: (i) The FRSB comes with a 7-year tenure, and the minimum investment required is ₹1,000, with no upper investment limit. Premature withdrawal is not allowed for general investors, reinforcing its role as a committed long-term savings product. (ii) However, senior citizens are permitted early withdrawal after a specified lock-in period (which varies by age), subject to a penalty of 50% of the interest earned in the last six months. This special exit clause offers flexibility while preserving fiscal discipline. 📚 Test Your Knowledge: Recently, the RBI kept the interest rate on Floating Rate Savings Bonds (FRSB) unchanged at what percentage for the July–December 2025 period? Correct Answer: 8.05% 🚀 Quick Recap: About RBI Governor : Sanjay Malhotra Headquarters: New Delhi