RBI Floating Rate Savings Bond Calculator
See exactly what an FRSB investment pays: half-yearly interest at the current 8.05% rate, year-by-year payout schedule, and your post-tax return at any income slab.
Investment
Payouts (7-year tenure)
| Annual interest (pre-tax) | — |
| Annual interest (post-tax) | — |
| Total interest over 7 years (pre-tax) | — |
| Total interest over 7 years (post-tax) | — |
| Effective post-tax yield | — |
| TDS applicable? | — |
Assumes the current rate holds for all 14 payouts. The actual rate resets half-yearly with NSC. Principal returns in full at year 7. Interest is paid out, not compounded.
Who FRSBs suit
The FRSB is a 7-year, government-guaranteed income stream paying the highest headline rate among sovereign retail products: 8.05% right now, against roughly 6.7% on a 7-year G-sec. The catches are the rate floating (it falls if small-savings rates fall), the 7-year lock, and interest taxed at slab. That combination works best for low-slab investors who want safe income and won't need the principal back, usually retirees treating the semi-annual payouts as a pension supplement.
At the 30% slab the post-tax yield drops to roughly 5.5%, and instruments with LTCG treatment (discount G-secs held beyond a year, for instance) can compete despite lower coupons. Run your own slab through the FD vs bond comparison before defaulting to the highest sticker rate.
FRSB vs the obvious alternatives
- vs bank FD: FRSB pays ~1%+ more than most 7-year bank FDs with sovereign (not DICGC-capped) safety, but zero premature exit for non-seniors.
- vs NSC: NSC compounds (better for accumulators) and matures in 5 years; FRSB pays out (better for income) at NSC + 0.35%.
- vs 7-year G-sec: the G-sec is tradable and its price can gain if rates fall. The FRSB is illiquid, but a rally can't lock its coupon lower. They're mirror-image bets on rates.
Full product mechanics, reset history and buying walkthrough: the FRSB deep dive.
Frequently asked questions
What is the current RBI Floating Rate Savings Bond interest rate?
8.05% per annum for the July–December 2026 reset period. The rate is contractually the National Savings Certificate (NSC) rate plus 0.35%, and NSC is 7.70% for the July–September 2026 quarter. The rate resets every 1 January and 1 July.
Can I withdraw before 7 years?
Generally no. FRSBs are locked in for 7 years and cannot be traded, transferred or used as loan collateral. Premature encashment is allowed only for senior citizens: after 6 years (age 60–70), 5 years (70–80) or 4 years (80+), with a penalty of 50% of the last coupon.
How is the interest taxed?
Fully taxable at your slab rate, with 10% TDS deducted if annual interest exceeds ₹10,000 (submit Form 121, which replaced Form 15G/15H from April 2026, if your income is below the taxable limit). Interest is paid out semi-annually on 1 January and 1 July. There is no cumulative option.
Where do I buy FRSBs?
Through RBI Retail Direct online, or at major banks (SBI, HDFC, ICICI and others). Minimum ₹1,000, no maximum. They are issued in electronic form (Bond Ledger Account).
Is the 8.05% guaranteed for 7 years?
No. That's what 'floating' means. If NSC rates fall, your rate falls at the next half-yearly reset; if they rise, it rises. The projection table here assumes the current rate holds for all 14 payouts, which is optimistic in a falling-rate cycle, so read it as an upper bound.
Related tools & guides
Educational tool, last reviewed July 2026. Results are estimates based on your inputs and standard market conventions; actual traded prices, taxes and platform charges may differ. Not investment advice; see the disclaimer.