Public Sector Bank Bonds

Features of Public Sector Bank Bonds

Ideal for investors with low risk-bearing capacity, PSU Bank Bonds prove to be a low risk investment as the issuing banks are run and supported by the government, which makes them relatively reliable.

Ideal for Risk-Averse Investors

Public sector bank bonds India are issued by government-owned banks in India, making them a low-risk investment option.

Fixed interest rates

Public sector bank bond interest rates are fixed, providing stable returns for investors.

Higher credit rating

Public sector bank bonds generally have a higher credit rating than bonds issued by private sector banks, indicating a lower risk of default.

Taxation

Interest earned on public sector bank bonds is taxable in India but may be eligible for tax deductions under certain circumstances.

Liquidity

Public sector bank bonds are relatively liquid, meaning they can be sold in the secondary market if needed.

Maturity periods

Public sector bank bonds are available in a range of maturity periods, allowing investors to choose the option that best suits their investment goals.

Benefits of Investing in Public Sector Bank Bonds

• Higher Returns than FDs: Public Sector Bank Bonds usually offer an interest rate between 8% and 9%, which is relatively higher than the returns earned on fixed deposits.
• Safe Investment: PSU Bonds are government-backed, and therefore carry minimal risk of default, thus assuring the investor of safety.
• Stable Returns: PSU bonds promise stable yields, which may not be the case with other bonds.

Credit Rating of Public Sector Bank Bonds

Different Public Sector Bank Bonds have distinct credit ratings. We encourage you to check our list of PSU Bank Bonds, and look for the credit rating badge on the top right corner for each listing.

The following list can assist you in analysing risk factors.

• AAA: highest degree of safety, lowest credit risk

• AA-, AA, AA+: high degree of safety, very low credit risk

• A-, A, A+: adequate degree of safety, low credit risk

• BBB-, BBB, BBB+ : Moderate degree of safety, moderate credit risk

• BB: Moderate risk of default

• B-, B, B+: high risk of default

• C: very high risk of default

• D: In default or expected to be in default

Investing in Public Sector Bank Bonds

To invest in PSU Bank Bonds with GoldenPi, all you need to do is follow these three steps -

• Sign up

  Register for an account on GoldenPi.

• Select a PSU Bond

  Choose from a wide variety of Public Sector Bank Bonds on GoldenPi to invest in.

• Monitor your Investment

  Keep track of your investment and receive notifications when it matures.