Opening and Closing of Floating-Rate Bond Accounts

Applying for Floating-Rate Bonds

Let us understand how to apply for a floating-rate bond. Keep reading.

Who is eligible to invest in floating-rate bonds?

Who is eligible to invest in floating-rate bonds?

  • Any adult individual 
  • HUF (Hindu Undivided Family) 

What are the documents required for floating-rate bonds?

What are the documents required for floating-rate bonds?

  • Duly filled application and nomination form 
  • KYC form if submitting for a Government bond

How to invest in a floating-rate bond offline?

How to invest in a floating-rate bond offline?

  • You can invest in a floating-rate bond offline

 

  • If you are investing in a bank bond, you can visit the nearest bank branch

 

  • If you are investing in government or corporate bonds, you can invest with the help of an investment broker. 

Please note that no broker, bank official or bank will call you or email you for any OTP, user-ID, password, PIN or any card number and CVV.

How to invest in a floating-rate bond online?

How to invest in a floating-rate bond online?

  • To invest in a bank bond, you can visit the net banking portal of the bank

 

  • Please note that you can only invest in bank bonds if you have a savings bank account in that bank

 

  • For Government or Corporate Bonds, you can log in to your Demat account, and apply for the bond. 

Please note that no broker, bank official or bank will call you or email you for any OTP, user-ID, password, PIN or any card number and CVV.

How to close a floating-rate bond account?

  • Your floating-rate bond will be automatically closed on maturity 

 

  • After your account is closed, your invested principal will be transferred to your bank account.  

Please note that no broker, bank official or bank will call you or email you for any OTP, user-ID, password, PIN or any card number and CVV.

Is Partial Withdrawal allowed?

Is Partial Withdrawal allowed?

Partial withdrawal is not allowed in Floating-Rate Bonds.

Is premature withdrawal allowed?

Is premature withdrawal allowed?

Premature withdrawal is not allowed except for senior citizens.

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    Points to remember

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    Floating-rate bonds offer varied interest rates for a specified period

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    Floating-rate bonds are issued by banks, governments and corporates

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    Premature and partial withdrawal is not allowed in floating-rate bonds

Quiz

Let us take a quick quiz about Floating-rate bonds.

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