Earning Rs 40,000 every six months for the next 7 years through the Floating Rate Savings Bonds is a straightforward process.

– Access the RBI Retail Direct Portal at https://rbiretaildirect.org.in

Step 1: Visit the RBI Retail Direct Portal

If you haven't already, create an account on the RBI Retail Direct Portal.

Step 2: Create an Account

Log in to your account using your credentials.

Step 3: Log In

Once logged in, select the "Floating Rate Savings Bonds, 2020 (Taxable)" as your investment option.

Step 4: Select Floating Rate Savings Bonds

Once logged in, select the "Floating Rate Savings Bonds, 2020 (Taxable)" as your investment option.

Step 4: Select Floating Rate Savings Bonds

The minimum investment requirement is Rs 1,000, and there is no upper limit, so you have the flexibility to choose your investment amount.

Step 5: Determine the Investment Amount

Place your bids for the Floating Rate Savings Bonds through the auction available on your Retail Direct login.

Step 6: Place Bids

Check the prevailing interest rates for the Floating Rate Savings Bonds, which are currently at 8.05% until December 2023.

Step 7: Review Interest Rates

Invest your chosen amount in the Floating Rate Savings Bonds. For example, if you invest Rs 10 lakh, you will get around Rs 40,000 as interest every six months.

Step 8: Invest

Keep in mind that the interest accrued on these bonds is subject to tax, and Tax Deducted at Source (TDS) will be applicable when the interest is paid.

Step 9: Consider the Tax Implications

These bonds have a tenure of 7 years. However, if you are a senior citizen, you have the advantage of an early exit option, available after the lock-in periods of 4, 5, and 6 years, depending on your age demographics.

Step 10: Understand the Lock-in Period

Remember that these bonds cannot be transferred and are not tradable, so you will need to hold onto them until maturity.

Step 11: Hold Until Maturity