Govt bonds are state development loans (SDLs) issued to raise funds for various developmental projects like infrastructure, etc.
You can buy government bonds or SDLs through the Reserve Bank of India's (RBI) Retail Direct Portal.
These bonds are usually of long durations and provide higher interest rates to buyers.
Government bonds usually have a lock-in period of seven to 40 years.
Investors can make premature withdrawals based on their age and bond features.
RBI also issues floating rate bonds (FRBs), and they can be a great option. FRBs offer 7.35% with a 7-year lock-in.
SCSS offers 8.2% interest, with a maximum investment limit of Rs. 30 lakh, and comes with tax benefits under Section 80C.
This scheme provides a regular monthly income with a higher interest rate and a maximum investment limit of Rs. 15 lakh.
Compiled By Himani Verma