What changed
The coupon rate for Floating Rate Savings Bond 2020 (Taxable) remains at 8.05% for the July 1 to December 31, 2026 period. This is the same rate as the previous half-year (January–June 2026). The rate is set as NSC rate (7.70%) plus a 35 bps spread.
What it means for you
For banks, this steady rate means no shift in the cost of retail deposits competing with these bonds. It reflects that the NSC rate is 7.70% in the current half‑year, resulting in an unchanged 8.05% coupon.
What you must do
- Review your retail deposit pricing against the unchanged 8.05% FRSB rate to stay competitive.
- Update internal rate sheets and customer communications for FRSB 2020(T) holders.
- Monitor NSC rate announcements for any future reset impact on bond yields.
Who it affects
Banks offering FRSB 2020(T) to retail investors, Treasury desks managing small savings-linked products, Retail depositors comparing fixed deposit rates with FRSB yields
Why did the FRSB rate stay the same?
The rate is pegged to the NSC rate (7.70%) plus a 35 bps spread. Since the NSC rate did not change from the previous half-year, the FRSB coupon remained at 8.05%.
When is the next rate reset?
The next reset will be effective January 1, 2027, based on the NSC rate prevailing at that time. RBI will announce it around end-December 2026.