This article offers a brief summary of the key aspects of the Canara Bank‘s Floating Rate Savings Bond schemes. Since these details are subject to frequent updates, please refer to the bank’s official website for the most current information on features and interest rates.
Canara Bank – Floating Rate Savings Bond Features:
- Individuals residing in India have multiple options to hold these Bonds:
- Individual Capacity: They can be held individually.
- Joint Basis: Held jointly by individuals.
- Survivor Basis: Held individually with a survivor clause.
- On Behalf of a Minor: As a guardian (father/mother/legal guardian).
- Hindu Undivided Family (HUF): As a family entity.
- The deposit starts from a minimum of Rs. 1000, in multiples of Rs. 1000, with no upper limit. Subscription can be made via cash (up to Rs. 20,000), drafts, cheques, or electronic modes.
- Interest on the bonds is payable semi-annually on January 1st and July 1st, and it’s mandatory to receive interest at these intervals; no cumulative interest option is available.
- The interest rate is reset every six months, beginning from January 1, 2021, and subsequently on July 1st and January 1st. The first coupon rate, effective from July 1, 2023, is set at 7.35%. This rate is pegged to the prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the NSC rate.
- Income from these bonds is taxable, and tax will be deducted at source as per the scheme guidelines during interest payouts.
How to invest?
Click here to invest in the Canara Bank’s Floating Rate Savings Bond schemes.
Note: The information presented here is sourced from publicly available data. We cannot be held responsible for any inaccuracies in the details. For the most current and accurate information, please visit the official website of the respective bank/institution.