Our profit methodology is based on the duration of your savings with National Bonds. The longer you save, the higher is the profit rate you receive.
In case the Saving Bonds are redeemed during a calendar year, the weight of the Saving Bonds redeemed before completing a holding period of 90 days is 40%, while the weight is 60% for Saving Bonds redeemed after completing a holding period of 90 days and before completing 180 days, whereas the weight is 80% for Saving Bonds redeemed after completing 180 days and before completing 360 days, and finally the weight is 100% for Saving Bonds redeemed after completing 360 days.
Following is the profit weightage matrix which was implemented as of August 1, 2015:
In case the Saving Bonds are not redeemed at the time of profit distribution, the weight is 100%. However, the payment of the entitled profit will be scheduled according to the completion of the respective holding periods, as set forth under clause 22 of the Saving Bonds Terms and Conditions booklet and in case Savings Bonds are redeemed before completing respective holding periods, the remaining reserved profit amount will be forfeited from the Bondholder account and transferred to the benefit of the joint investment pool.