RBI Bonds/ GOI Bonds, Sovereign Bonds.
GoI Savings [Taxable] Bonds, also called RBI bonds, come with sovereign guarantee with no risk to your principal amount. The rate of interest on GoI Bonds is with two payout options – non-cumulative option offers interest on half-yearly basis, while cumulative option pays interest on maturity. The bonds have a tenor of seven years. There is no upper limit of investment in GoI Bonds but the returns are taxable as per your slab.
Sovereign Gold Bond are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India. You not only benefit from possible asset appreciation opportunity, but are also assured with annual interest.