For those Indians who are responsible for their own financial planning, Monday, July 7, 2025, is a day of stability and new challenges. The Reserve Bank of India (RBI) has left interest rates on its popular Floating Rate Savings Bonds unchanged, and precious metals including gold and silver have come down.
At the same time, we can expect an increase in the fees for ATM transactions that will influence our daily banking behaviour.
Fixed Returns – RBI Floating Rate Savings Bonds
In a significant update for savers, the RBI has decided that the interest rates on its Floating Rate Savings Bonds (FRSB 2020 (T)) would continue to be at 8.05% for the July 1-December 31, 2025, period.
This rate, 0.35% higher than the prevailing National Savings Certificate (NSC), provides an attractive and safe investment avenue for those looking for assured returns on the money invested.
Interest on these bonds is paid twice a year (on 1 January and 1 July). They start at an investment of ₹1,000, and with no cap, they are affordable for different kinds of investors. For official information regarding the RBI Floating Rate Savings Bonds, refer to the Reserve Bank of India’s website.
Important Considerations for FRSB Investors
Even though FRSBs are secured instruments, investors have to note that there is a lock-in period of seven years. Early withdrawal is generally limited, but seniors are afforded some leniency based on their age, even if they are penalized.
It is important to note that the interest income generated by such bonds is fully taxable, and TDS (Tax Deducted at Source) is applicable if the annual interest amount crosses ₹10,000.
That makes it crucial, then, for investors to consider the tax on investments as part of the overall returns and to incorporate these bonds into their overall financial planning tips.
Gold and Silver Prices See a Decline
Gold & Silver: In the commodities market, on July 7, 2025, the value of gold and silver has also declined according to global trends. Prospects for lower demand lifted spot gold prices internationally. On the domestic front, gold prices today in India showed little change as 24-carat gold was being sold at ₹98,993 per 10 grams in the Indian capital, New Delhi, and other major cities.
Likewise, the silver price today in India also registered a fall to trade at ₹108,370 per kilogram. The pressure on the precious metals may be coming from what appears to be a few global economic signals and some possible headway in an international trade conversation.
ATM Costs Mount for Daily Transactions
In a move that will make everyday banking even more expensive, several leading banks like Axis Bank, ICICI Bank, etc., have revised their ATM transaction charges with effect from July 1, 2025. For Axis Bank, for bank customers who exceed the free transaction limit, it has been raised from ₹21 to ₹23.
These new fees impact different account types and are intended to compensate banks for growing back-office expenses. Heads up – People need to be aware of these changes in order to avoid additional fees or revise their budgeting pointers.
This Indian personal finance news for July 2025 reminds us that it is still necessary for people to track the markets and banking rules to manage personal finance well.
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