{"id":3619,"date":"2022-08-13T14:12:45","date_gmt":"2022-08-13T14:12:45","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=3619"},"modified":"2022-08-13T14:13:04","modified_gmt":"2022-08-13T14:13:04","slug":"who-owns-government-bonds-are-they-for-you","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/who-owns-government-bonds-are-they-for-you\/","title":{"rendered":"Who owns Government Bonds? Are they for you?"},"content":{"rendered":"

So , in the last article we talked about <\/span>what government bonds are<\/span> and how important they are in today\u2019s times. Today, we\u2019ll be understanding\u00a0 whether people really do\u00a0 buy government bonds, and if so.. Who are these people?? And should you be one of them ?<\/span><\/p>\n

Before we start, let me give you some perspective.There are around 85 Lakh Crores worth of government bonds out there in the market.<\/span> 8,50,00,00,00,00,000! Too big ?? <\/b>To make more sense of this number, India\u2019s latest GDP was 147 Lakh Crores, so that comes to around 60% of our G.D.P! :O. Government Bonds have typically\u00a0 been an investment choice of\u00a0 institutions and the big boys\u2019 clubs due to high minimum investment.<\/span><\/p>\n

Banks, Insurance Companies and the RBI together own around 80% of these bonds. The rest 20% is divided amongst all the other institutions, asset management companies and other companies. So, how much do individuals like us own?? Well it’s not even 1% \ud83d\ude41 This is one\u00a0 of the safest places to invest your money in, but individuals don’t own even 1% of it. So if you own a Government Bond you’re easily one in a million! )<\/span><\/p>\n

It’s not that individuals cannot own government bonds, it’s just that access to these government bonds have been very difficult in the past. The Government has come out with platforms and schemes over the last few years to ease the process for individuals to own bonds but none of them have actually taken off, yet. Hopefully in the coming years, this changes.\u00a0<\/span><\/p>\n

So, now that we know in whose hands these government bonds are, are they really worth owning? Well you know, it depends! Mainly on the rate of interest you would get from the Bond and the safety of that Bond. Safety wise, we\u2019d probably compare it to a Fixed Deposit from a Bank. The bank is more likely to go bankrupt and not pay you your money back compared to our Government. RBI does insure your Bank Deposits up to an amount of 5 Lakhs but the Government doesn’t need to have any such limit. They will pay you back what you are owed.<\/span><\/p>\n

Now , coming to the part of what rate of interest you would receive from that bond! Historically Government bonds have been at rates close to Fixed Deposits rates or lower. But recently, you can get anywhere between 1-2% more on government bonds than most Fixed Deposits.\u00a0<\/span><\/p>\n

As of August 2022 ,\u00a0<\/span><\/p>\n

3 Year FD\u2019s ( SBI , HDFC Bank , ICICI Bank ) – Between 5.2% –\u00a0 5.9%<\/b><\/p>\n

3 Year Government Bond Rate – Around 6.75%<\/b><\/p>\n

5 Year FD\u2019s ( SBI , HDFC Bank , ICICI Bank ) – Between 5.4% –\u00a0 6%<\/b><\/p>\n

5 Year Government Bond Rate – Around 7%<\/b><\/p>\n

10 Year FD\u2019s ( SBI , HDFC Bank , ICICI Bank ) – Between 5.5% – 6.5%<\/b><\/p>\n

10 Year Government Bond Rate – Around 7.3%<\/b><\/p>\n

Source : ccilindia.com , www.bankbazaar.com<\/span><\/p>\n

So yes, at this point in time we are getting more in government bonds. There may come a time when this changes but so would everything else. All we can\u00a0 look at is what we get\u00a0 now.\u00a0<\/span><\/p>\n

Both of these investments are options for\u00a0 people looking for more stable returns year on year. If you have a higher risk appetite then, you can always invest or trade in shares.\u00a0<\/span><\/p>\n

That’s it for now! We\u2019ll be back with more.<\/span><\/p>\n

Investments in securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for educational, information and investor awareness purposes only and in no way to be considered as advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

So , in the last article we talked about what government bonds are and how important they are in today\u2019s times. Today, we\u2019ll be understanding\u00a0 whether people really do\u00a0 buy government bonds, and if so.. Who are these people?? And should you be one of them ? Before we start, let me give you someContinue reading “Who owns Government Bonds? Are they for you?”<\/span><\/a><\/p>\n","protected":false},"author":31,"featured_media":3620,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-3619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/3619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=3619"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/3619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/3620"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=3619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=3619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=3619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}