State Guaranteed Bonds: Government guaranteed bonds of Andhra Pradesh, Uttar Pradesh and Kerala give up to 9.9% return and security, are a better option than FD, can be purchased from online platforms.
Add informalnewz.com as a Preferred Source
State Guaranteed Bonds: When it comes to investing, most investors choose options that give them returns as well as security. In such a situation, investors choose the option of FD or post office scheme, but investing in government guaranteed bonds is also proving to be a good option for many people these days. These bonds are giving returns up to 9.9%.
Compared to fixed deposits (FD), these bonds can give both higher returns and security. Let us tell you which are the government guaranteed bonds of Andhra Pradesh, Uttar Pradesh and Kerala, and why investing in them can be better, and what is the way to buy them.
Invest in these government bonds
Talking about some special bonds, there is a bond from Andhra Pradesh, Andhra Pradesh Mineral Development Corporation Limited, which has a coupon rate of 9.30% and will mature on 9 May 2028. Its rating is Ind-Ra AA(CE).
Talking about the government bonds of Uttar Pradesh, there is a bond of Uttar Pradesh Power Corporation Limited (UPPCL), which gives 9.7% return and will mature in March 2028. Its rating is Ind-Ra A+(CE). There are three bonds from Kerala which are expected to give more than 9% return. The bond of Kerala Infrastructure Investment Fund Board will mature on 30 December 2031 with a return of 9.40%. Its rating is Ind-Ra AA(CE).
The bond of Kerala Infrastructure Investment Fund Board (KIIFB) will mature on 8 August 2035 with a return of 9.67%. Its rating is Ind-Ra AA(CE). Another KSFC bond with a return of 9.42% will mature in December 2033. All these bonds come with government guarantee, which makes them safe.
How to invest
You can use the online platform to buy these bonds. First, you have to register on this website. For this, enter your mobile number and email ID.
Then, you have to complete your KYC, which includes PAN card, Aadhaar card and bank account details. After the KYC is complete, you can see the list of bonds available on the website. Here you will easily find bonds of Andhra Pradesh, Uttar Pradesh and Kerala.
Each bond is accompanied by its coupon rate, maturity date and other information. Choose the bond of your choice, then click on “Buy this Bond”. After this, you have to provide your demat account details, as the bonds are transferred in demat form. If you do not have a demat account, you have to open one first. Then, make the online payment, and the bond manager of the online platform will help you complete the rest of the process.
Why are government guaranteed bonds better than FDs?
Compared to fixed deposits (FDs), these bonds can give both higher returns and security. FDs usually give a maximum return of 7-8%, while government guaranteed bonds are giving returns up to 9.9%. Also, these bonds are backed by the government, which means the risk is very low. The government guarantees the repayment of interest and principal in these bonds, which can be safer than FDs, as some banks have the risk of default.
Apart from this, bonds provide an opportunity to invest for a long period, which can strengthen your financial plan. Keep some things in mind before investing. The price and return of the bond depend on the market situation. Also, TDS is not deducted in government bonds, which further increases your earnings. But before investing, talk to your financial advisor and understand the risk and return of the bond thoroughly.
