Government stops subscription for 8% GoI savings bon
The government on Monday announced that its GOI Savings Bonds, 2003, earning 8 per cent interest per annum, will cease subscription from January 2.
The bonds have been popular on account of offering a higher rate of interest than small savings and fixed deposit rates.
"The Government of India announced here today that 8 per cent GOI Savings (Taxable) Bonds, 2003, shall cease for subscription with effect from the close of banking business on Tuesday, January 2, 2018," a Finance Ministry release said.
The bonds, with a tenure of 6 years, minimum investment of Rs 1,000, no limits on maximum investment and the option to receive interest on a half-yearly basis, are available in physical form only and are not listed or tradable on stock exchanges.
The interest received from these bonds is taxable at the marginal rate of income tax the investor is liable for.