What is the tenure of this bond?

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• What is the risk in REC/NHAI bond investment?

  The bond comes with minimum risk and does not need daily monitoring. Moreover, you do not need to pay a commission to get the bond. The bond also comes with AAA/stable rating by Crisil Ltd and AAA(Ind)/(Affirmed) by Fitch.

• Can the account holder choose not to close the account after maturity?

  The normal tenure of the account is up to the age of 21 years of the girl.  The girl can choose to continue the account further, but it will not be eligible for any interest after the maturity period.

• What is National Savings Certificate (NSC)?

  NSC is a tax saving bond issued by the government via Postal services. It is characterized by 5 years and 10 years maturity periods and enjoys tax exemption under section 80C.

• How much can you invest in REC/NHAI Bonds?

  You can invest a minimum of Rs. 10,000 and a maximum of Rs. 50 lakh. The face value is Rs. 10,000 per bond, so you can buy up to 500 bonds.

• What is the Interest rate on such bonds?

  Currently, an interest rate (coupon rate) of 6%, payable annually, is being offered on this bond annually on 1st April and final interest is payable at the time of maturity. The interest is taxable.