The monthly payout option is useful to get regular income. For the annual payout series, the coupon is 9.2%, which means you will get Rs.9,200 each year. This acts as a natural hedge against inflation but the upper limit for annual coupon is 9.5% per annum. The coupons vary between 8.83% and 9.3% per annum for retail investors depending on the tenure, and come with monthly, annual and cumulative payout option. MINT MONEY TAKEWhile monthly payout works for those who need regular income, the interest earned is lower than the annual and cumulative options.

Source: Mint August 01, 2016 14:03 UTC