Mumbai: The government has notified that the 8 per cent GOI Savings bond, 2003 shall cease for subscription from January 2, 2018. One of the safest product for retail investors, these bonds with a sovereign rating were a preferred choice for many senior citizens, retirees and those looking for fixed income.This product became popular especially in the last couple of years, after interest rates on bank fixed deposits , company deposits and small savings instruments fell below the 8% mark.The bonds with a tenure of 6 years, minimum investment of Rs 1,000 and no cap on maximum investment paid an interest of 8 per cent, with investors having the option to receive interest on a half yearly basis. Compared to bank fixed deposit that paid interest rates between 6.25-6.75%, investors benefitted by earning a clear an extra 1.25-1.75% from a product with sovereign ratings.“The 8% GOI savings bond was a very popular product amongst fixed income investors since April 2016, after interest rates on fixed deposits and small savings instruments such as post office monthly income scheme, public provident fund (PPF) moved below 8%,” says Anup Bhaiya, MD and CEO, Money Honey Financial Services , a Mumbai based financial products distributor.He estimates investors poured as much as Rs 1,500 crore to Rs 2,000 crore into these bonds every month, with many investors shifting from fixed deposits to these bonds due to the higher rates on offer. It is unclear, as of now whether these bonds will open again for subscription and what will be the interest rates on offer, and investors will have to wait for government notification on this.“Interest coupon of 8% with sovereign rating was a very good investment option. With the closure of this option, investors will have to look at other options like debt mutual funds and corporate deposits,” says Jignesh Shah, Founder, Capital Advisors.