Gold Bond

Investing in Sovereign Gold Bond

Let’s see its advantages:

  • Just like in Digital gold, here also you don’t have to pay any extra charges while purchasing.
  • But the best part is that you also don’t have to pay any GST on sovereign gold bonds and this means that you don’t have to pay any extra money for purchasing.
  • The additional bonus of these bonds is that you get an annual interest of 2.5% of the market value.
  • Which allows you to use this as an additional income source.
  • And it not only gives you the interest like a bank does on your savings, but it also allows you to get the profit from gold price appreciation.

Sovereign Gold Bonds also provide an 8 year ‘lock in to redeem benefit’ from RBI. Because of which, once you buy this, you can only redeem it from the RBI after 8 years. This entire process is online and is quite simple. Say if you invest Rs 5000 today, and eight years later, its value becomes Rs 10,000, you won’t have to pay any capital gain tax on this Rs 5000 that you earned. This is only possible though, if you keep it for 8 years which is not a compulsion.

You can also exit after five years but because you’ve exited early, you have to pay the capital gain tax. But what if you want to exit before five years? This is also possible through the stock market. You can buy it today and sell it tomorrow the way you can do with stocks and mutual funds.
And now, it’s time for the last tip – How can you buy gold at a cheaper rate than the market?
You can do this by buying the Sovereign Gold Bond, but not when it’s announced.


Safe investment with assured int.

Earn Interest

2.50% interest per annum

Tax Benefits

No TDS applicable on interest

No Storage Cost

Zero risk of handling physical gold.

Application Details - SGB Bonds