Benefits of SGB
Interest of 2.5%
Get a fixed interest rate of 2.50% per annum on your investment.
Liquidity
Easily tradable on stock exchanges if you need liquidity.
Safety
Issued by the Reserve Bank of India (RBI), so your investment is super safe.
Margin benefit
SGB can be used as collaterals for derivative margins.
Purity
Since it's digital, gold purity isn’t a concern.
Tax exemption
No TDS and get tax exemption on capital gains if you hold it till maturity.
Interest of 2.5%
Get a fixed interest rate of 2.50% per annum on your investment.
Liquidity
Easily tradable on stock exchanges if you need liquidity.
Safety
Issued by the Reserve Bank of India (RBI), so your investment is super safe.
Margin benefit
SGB can be used as collaterals for derivative margins.
Purity
Since it's digital, gold purity isn’t a concern.
Tax exemption
No TDS and get tax exemption on capital gains if you hold it till maturity.
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FAQ's
Q
What are Sovereign Gold Bonds?
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A
Sovereign Gold Bonds are a government-backed investment in gold. Instead of buying physical gold, you buy a bond issued by the RBI that represents gold. It's like owning gold but only on paper!
Q
What are the Benefits of Investing in SGBs?
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A
- - Safety First: Backed by the Government of India, so your investment is super safe.
- - Earn Interest: Get a fixed interest rate of 2.50% per annum on your investment.
- - No Worries About Purity: Since it's digital, gold purity isn’t a concern.
- - Tax Advantages: No TDS and you may get a tax exemption on capital gains if you hold it till maturity.
- - Easy Trade: Easily tradable on stock exchanges if you need liquidity.
Q
Who can invest in SGBs?
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A
Individuals, HUFs, trusts, and charitable institutions in India can invest in SGBs.
Q
What is the minimum and maximum investment?
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A
You can invest in SGBs with a minimum of one gram of gold and a maximum of 4 kg for individuals, 4 kg for HUFs, and 20 kg for trusts per fiscal year.
Q
How long should you hold SGBs?
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A
SGBs have an 8-year maturity period, with an option to exit from the 5th year.
Q
Are there any risks in SGB investments?
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A
The value of SGBs may fluctuate with gold prices, but you won't lose the gold units you paid for.
Q
Is joint holding allowed?
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A
Yes, you can hold SGBs jointly.
Q
Can a minor invest in SGB?
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A
Yes, a minor can invest with the application made by their guardian.
Q
Can each family member buy 4 kg separately?
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A
Yes, each family member can buy SGBs up to 4kg in their name if they meet eligibility criteria.
Q
Can an investor/trust buy 4 kg/20 kg worth of SGB every year?
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A
Yes, within the annual limits for each category.
Q
Is the maximum limit of 4 kg applicable in case of joint holding
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A
Yes, it applies to the first applicant in a joint holding.
Q
Am I assured of allotment when I apply?
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A
If you meet the eligibility criteria and remit the application money on time, you'll receive an allotment.
Q
When will you get the Holding Certificate?
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A
Yes, you'll receive a physical certificate on the date of issuance or by email if provided.
Q
At what price are the bonds sold?
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A
The price is based on the average gold price for the preceding 3 business days.
Q
What do you get on redemption?
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A
On maturity, you'll get the redemption amount in Indian Rupees.
Q
How will you receive the redemption amount?
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A
Both interest and redemption proceeds will be credited to your bank account.
Q
What are the procedures during redemption?
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A
You'll be advised a month before maturity. Maturity proceeds will be credited to your bank account. Update your details if needed.
Q
Can you encash the bond anytime?
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A
Yes, after the 5th year, it can be redeemed on coupon payment dates or transferred.
Q
How do you exit your investment?
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A
Approach the bank/office/agent/ broker at least 30 days before the coupon payment date for premature redemption.
Q
Can you gift the bonds?
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A
Yes, you can transfer them to eligible recipients.
Q
Can you use these bonds as collateral for loans?
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A
Yes, they can be used as collateral, subject to the decision of the bank/financing agency/ brokerage house.
Q
What are the tax implications?
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A
Interest is taxable, but capital gains are exempt for individuals.
Q
Is TDS applicable?
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A
No, TDS is not applicable; you're responsible for tax compliance.
Q
Who provides customer services after issuance?
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A
The issuing banks/offices/agents provide services like change of address, redemption, nomination, etc.
Q
What are the payment options?
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A
You can pay through cash, cheques, demand draft, or electronic fund transfer.
Q
Is nomination available?
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A
Yes, the nomination is available as per government regulations.
Q
Can you trade these bonds?
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A
Yes, they are tradable in demat form and can be sold and transferred.
Q
What to do in case of the investor's death?
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A
The nominee or legal heir can claim the bond as per government regulations.
Q
How to contact RBI for queries?
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A
Email your queries to the dedicated RBI email address for SGBs.
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Current Price
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| ISIN | Haircut [%] | Value of Holdings | Margin Post Haircut |
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