A bond is a form of Debt Investment, in which an investor lends money to an entity (typically Corporate or Government) which borrows the funds for a fixed period of time at a variable or a Fixed Interest Rate. Bonds are often used by states and sovereign governments, companies to raise money and finance a various kinds of projects. Please find below some Bonds which are available on perpetual basis.
Government of India’s Savings Bonds @ 7.15% per annum
- The Bonds will be issued for a minimum amount of Rs. 1000/- and in multiples of Rs. 1000/- thereof.
- No maximum limit for investment in Bonds.
- Interest on the Bonds will be taxable under the Income Tax Act, 1961.
- The Bonds will be exempt from Wealth -Tax under the Wealth Tax Act, 1957.
- The Bonds will have a maturity period of 6 Years.
- The Bonds will bear interest at the rate of 7.15% per annum.
- Interest on non- cumulative bonds will be payable at half – yearly intervals
- Interest on cumulative bonds will be compounded half- yearly & paid on maturity along with the Principal.
- The cumulative value of Rs. 1000/- at the end of six years will be Rs. 1601/-
- These Bonds are not transferable.
- The Bonds are neither tradable and nor pledgeable.
- Nomination Facility available.
- Residential Individuals, HUF, Charitable Institutions, Universities & Minor can invest in these bonds.