Get higher interest from FD with government guarantee, first time opportunity, when and how to invest money.

New Delhi. If you are looking for a safe investment and high interest option, your search is about to come to an end. The government has announced to launch bonds worth Rs 28,000 crore in the market on May 3. The Finance Ministry has said that the bonds will be sold in 3 lots from Friday, May 3. There will be investment opportunity from short term to long term. The special thing is that even small investors can invest in this bond, on which they will get full security guarantee from the government.

According to the Ministry of Finance, the first lot of the bond is for 2 years on which the investor will be given a lump sum return of 7.33%. The price of this lot will be 6 thousand crore rupees. The second lot is for a 15-year investment, which will yield 7.23 percent and under which the government is selling bonds worth Rs 10,000 crore. The price of the third lot is 12 thousand crore rupees which is 40 years till 2064. It will give you a return of 7.34%. Apart from this, an additional subscription of Rs.2000 crore will also be given. Nikhil Kamat, founder of brokerage firm Zerodha, has also termed bonds as a reliable investment, which can be an alternative to FDs.

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A portion will be reserved.
The government will sell the bond through the RBI in Mumbai. Investors can also invest in it through online means. 5 percent of the total bonds are reserved for qualified individual and institutional investors. This section is classified as non-competitive, in which only qualified investors will be allowed to invest.

How can you invest?
General investors can also invest in this auction through RBI Core Banking Solutions (E-Kuber). All investments are made in electronic format only. Its auction will open on May 3, 2024. Non-competitive bids can be placed between 10.30 am to 11.00 am, while competitive bids will be open from 10.30 am to 11.30 am.

When will the result be known?
The Finance Ministry said that the names of the bond buyers will be announced by 3 pm. It will be paid on May 6, 2024. Those who will be allotted bonds after investment will be paid on May 6 and bonds will be issued in their names. Apart from earning higher interest on it than FD, it will also be guaranteed full government protection.

Tags: Bank FD, Government bond yields, interest rate, Sovereign Gold Bonds