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What are the best bonds for senior citizens?


One of the most popular bonds for senior citizens is the RBI Senior Citizen Bond with floating rate savings bonds. Issued by the Central Government, these bonds come with a tenure of 7 years. The interest on RBI Floating Rate Bonds is variable but is announced at the start of every semester of every year. For instance, for the period of Jan 2023 to June 2023, the interest rate offered on these bonds would be 7.35%, much higher than the private sector banks Fixed deposit rates.

Since these bonds are issued by the Reserve Bank of India and are under government securities regulation, the probability of default with these bonds is minimal, making them perfect for senior citizens.