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Bonds- Select The Bank

About Bonds

As we know, bonds are something which helps government and banks to borrow and raise money. In lieu of money, bonds are issued to the investors which guarantee some interest on the invested money. Almost all major private and public banks issue such bonds and raise money. For instance, the ICICI bank bonds, HDFC bonds, BOB bonds and SBI bonds. Interestingly, SBI bonds are not like the usual bank bonds similar to say ICICI bank bonds. SBI bonds have been sold abroad and successfully raise considerable funds. In the year 2010, SBI bonds raised around $1 billion in the US. Not many forms of SBI bonds are however known in India.

Probably ICICI bonds are the most famous ones amongst the popular bank bonds in India. The most famous ICICI bond is the 8% savings bond issued by government of India. The 8% ICICI bond provides risk free returns to the investors and of course is a good tax saving instrument. These ICICI bonds are similar to the 8% BOB bonds and 8% HDFC bonds in almost every respect. Though these saving bonds are good to save income tax but the interest earned on these types of ICICI bonds is taxable. Whether it is the BOB bonds, HDFC bonds or ICICI bank bonds, the interest earned is either cumulative or non-cumulative.

Apart from the 8% saving bonds, an infrastructure bond and a capital gains bond is another type of ICICI bond. Government of India issues capital gains bonds and infrastructure bonds for designated institutions like NABARD, NHAI and REC using the mediums like HDFC bonds, ICICI bank bonds and BOB bonds. The capital gains ICICI bonds or other bank�s capital gains bonds are quite popular to avoid tax liability arising out of selling the capital assets like house etc. The various type of ICICI bonds vary in terms of rate of interest, tenure etc. but the purpose of saving tax is similar.

Apart from just investments, these 8% ICICI bank bonds or the capital gains HDFC bonds are also deemed as a good way of saving tax liability. However, whether it is the ICICI bond or the BOB bonds, all these are regulated by the government of India and Reserve Bank of India and hence are one of the most trustable ways of investments and tax savings in India. At Money Super Bazaar, we have garnered every type of arcane information regarding all type of bank bonds like the ICICI bond etc.

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