RBI increases Floating Rate Bond 2034 interest rate from 6.45% to 7.26% — an increase of 81 bps!

 RBI increases Floating Rate Bond 2034 interest rate from 6.45% to 7.26% — an increase of 81 bps!


New rate applicable: 30 October 2026 to 29 April 2027.


What does this mean?

- ₹1 lakh investment earns approx. ₹3,630 every six months.

- Interest is paid half-yearly.

- Rate is revised every six months.

- Backed by the Government of India.


My Take: An interesting option for investors seeking regular income with low credit risk. However, remember that the interest rate can change every six months and interest is taxable.


Don't look at just the interest rate. Look at post-tax returns!


#RBI #Bonds #FixedIncome #PersonalFinance

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