How the interest is paid in case of Relief/Savings Bonds?
Relief/Savings Bonds provide the investors to opt for cumulative/non-cumulative interest payment. In case of cumulative bond, the interest is payable alongwith the principal at the time of redemption. However, in case of non-cumulative bonds, the same is paid at half-yearly intervals. If an investor requires regular income flow then it is suggested that he/she should opt for non-cumulative mode of interest payment. Interest can be paid through interest warrants delivered through registered post or can be credited to the investor’s bank account on due date, in case the investor has submitted the bank details as per the ECS Mandate form available in the offices of the RBI and the Agency Banks. Forms can also be downloaded from the website of RBI: www.rbi.org.
Relief/Savings Bonds provide the investors to opt for cumulative/non-cumulative interest payment. In case of cumulative bond, the interest is payable alongwith the principal at the time of redemption. However, in case of non-cumulative bonds, the same is paid at half-yearly intervals. If an investor requires regular income flow then it is suggested that he/she should opt for non-cumulative mode of interest payment. Interest can be paid through interest warrants delivered through registered post or can be credited to the investor’s bank account on due date, in case the investor has submitted the bank details as per the ECS Mandate form available in the offices of the RBI and the Agency Banks.
