Floating rate saving bond (FRS) comes with a minimum investment of Rs 1,000 and there is no limit prescribed on the amount of money you can invest. Tenure is seven years. Both resident individuals and HUF can invest in these bonds, but non-resident individuals are not allowed to invest. Bonds can be bought from public sector banks and select private sector banks like Axis Bank, IDBI Bank, HDFC Bank and ICICI Bank.
- FRS holders will be paid at the rate of 7.15 per cent
- FRS will always pay 0.35% more than the rate offered on NSC.
- FRS pays interest every six months
