8.05% Floating Rate Savings Bonds: India's Safest High Yield

RBI Floating Rate Savings Bonds 2020 pay 8.05% — among the highest sovereign-backed rates in India

The rate is pegged to NSC + 0.35% and resets every 1 January and 1 July, so it can rise or fall

Interest is paid half-yearly only — there is no cumulative/growth option, and it is fully taxable at your slab

7-year lock-in with no tradeability; only investors aged 60+ can exit early, after 4-6 years

Buy with zero fees and no upper limit via RBI Retail Direct or major banks like SBI, HDFC and ICICI