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Floating Rate Savings Bonds Calculator

Calculate returns from Floating Rate Savings Bonds (FRSB) 2020 with interest rates linked to NSC rates.

₹1K₹50L
5%10%

Rate resets every 6 months based on NSC rate

Key Features

  • ✓ Fixed tenure: 7 years
  • ✓ Interest paid semi-annually
  • ✓ Rate = NSC rate + 0.35%
  • ✓ No premature withdrawal
  • ✓ Minimum: ₹1,000
  • ✓ No maximum limit

Returns Summary

Maturity Amount (7 years)

165,744

Principal Amount100,000
Total Interest Earned65,744
Annual Interest (Avg)9,392
Semi-Annual Payout (Avg)4,696
Effective Annual Rate9.39%

⚠️ Note: Interest rate resets every 6 months. Actual returns may vary based on future NSC rate changes. This calculation assumes constant rate.

💰 Tax: Interest is fully taxable as per your income tax slab. No TDS deduction. Declare in ITR annually.

About This Calculator

The Floating Rate Savings Bonds Calculator Calculator helps you estimate the future value of your investments and plan your financial goals effectively. Whether you're saving for retirement, children's education, or wealth creation, understanding potential returns is essential. Our calculator shows projected maturity amount, total investment, and returns based on your inputs. It accounts for compound interest and provides year-wise growth projections. Use this tool to compare different investment scenarios and make informed decisions. Start planning your financial future today with accurate calculations at your fingertips.

How It Works

Floating Rate Savings Bonds Calculator works on the principle of compound interest, where your returns generate additional returns over time. The power of compounding significantly increases your wealth in the long term. Regular investments, even small amounts, can grow substantially over extended periods. Key factors affecting your returns include the investment amount, expected rate of return, investment frequency, and time horizon. Historical data shows that equity investments typically offer 12-15% returns, while debt instruments provide 7-9% returns over the long term. However, past performance doesn't guarantee future results. Our calculator helps you set realistic expectations and plan accordingly. It's important to start investing early to maximize the benefits of compounding. The calculator uses mathematical formulas to project future values based on your inputs.

Example Calculation

Scenario: Monthly investment of ₹10,000 at 12% for 15 years

  • • Monthly Investment: ₹10,000
  • • Expected Return: 12% per annum
  • • Investment Period: 15 years

Frequently Asked Questions

What are Floating Rate Savings Bonds?

FRSB 2020 (Taxable) are government bonds with interest rates that reset every 6 months based on prevailing NSC rates. Current rate is NSC rate + 0.35%. They offer capital protection with market-linked returns.

What is the tenure of FRSB?

FRSB has a tenure of 7 years from the date of issue. There is no premature withdrawal facility. Interest is credited semi-annually to the investor's bank account.

Who can invest in FRSB?

Resident Indian individuals, HUF, charitable institutions, and universities can invest. NRIs are not eligible. There is no maximum age limit for investment.

What is the minimum and maximum investment?

Minimum investment is ₹1,000 with no maximum limit. Investments can be made in multiples of ₹1,000. There is no upper ceiling on investment amount.

Are FRSB returns taxable?

Yes, interest earned is fully taxable as per your income tax slab. TDS is not deducted. Interest must be declared in ITR. No tax benefits under Section 80C available.