New Delhi, Aug. 17 -- With fixed deposit (FD) rates softening after the Reserve Bank of India's (RBI) recent rate cuts, debt investors are left with few ways to optimise returns without compromising on safety.

One instrument worth considering in this scenario is the RBI Floating Rate Savings Bond (FRSB), which currently offers 8.05% per annum and comes with the comfort of sovereign credit quality.

The FRSB is issued by the RBI on behalf of the government of India. You don't need a demat account to invest; you can buy it from a bank or the RBI's Retail Direct platform.

Its interest rate is linked to the National Savings Certificate (NSC) rate, with an additional 0.35% spread. The NSC currently offers 7.7%, pegging the FRSB's interest ra...