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Bonds - What are the options available regarding the interest payment on RBI Bond?

11 Apr 2003

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Option A - Interest payable half-yearly:

  • Promissory Notes:
    Under this option an investor will get interest at the rate of 8.5% per annum payable at half yearly intervals from the date of issue of bond in terms of sub-paragraph (I) of paragraph (5) above. The interest will be paid from the date of issue of bonds upto 30th June/31st December as the case may be and thereafter half yearly on 30th June and 31st December by means of post dated interest warrants sent to the investor in advance alongwith the Promissory Note. The interest warrants would be valid for three months from the date of issue.
  • Bond Ledger Account:
    In case of Bond Ledger Account, by credit to the Bank account of the holder or by interest warrants or cheques.

Option B - Cumulative interest payable on maturity:

Under this option interest at the rate of 8.5% per annum would be compounded with half yearly rests and will be payable to the investor on maturity alongwith the principal. Further interest at the rate of 8.5% per annum shall be payable to such of the investors who do not encash their bonds on the expiry of 5 years from the date of their issue, at half yearly intervals or compounded with half yearly rests, as the case may be. Such interest would be payable from the date of maturity till the time the bonds are redeemed.

Source: DWT BACK

To be added soon

Priyanshu B. Tanna

SEBI registered IFA

ARN119467 & EUIN E-183966

To be added soon

Bharat Tanna

SEBI registered IFA

ARN26176 & EUIN E-044509

To be added soon

Kundan B. Tanna

SEBI registered IFA

ARN294073 & EUIN E-553599

Risk factor

Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

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