RBI's Savings Bond a good investment option for risk-averse investors

Go for half-yearly payouts if you seek regular income

With interest rates coming down on most debt instruments, only a few are giving good returns. The Reserve Bank of India’s (RBI’s) Savings Bond is one of them. A fall in retail domestic term deposit rates is discernible across all tenors above one year and till 10 years. Currently, the SBI fixed deposit rate is 6.10 per cent for tenors in the range of 5 to 10 years while it is 6.60 per cent for senior citizens.

In comparison, RBI Savings Bonds carry a coupon rate of 7.75 per cent compounded/payable half-yearly. "RBI bonds score over bank FDs on return. Their