IDFC FIRST Bank Sovereign Gold Bonds

Enjoy the benefits of this all-rounder investment with returns on gold plus interest with tax benefits.

Sovereign Gold Bonds
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Interest of 2.50% per annum along with returns of Gold
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No Capital Gains tax on Investment for individuals
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Zero Holding cost
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Issued by GOI hence bonds will carry sovereign guarantee

Know more about sovereign gold bonds

Sovereign gold bonds (SGB's) are issued by the Govt of India. They are a superior alternative to buying physical gold

Key Things to be Noted about Gold Bonds

  • SGB are denominated in grams of gold (multiples of 1 gm)
  • They pay interest of 2.50% every year over and above the gold returns.The interest is paid every 6 months
  • Tenure of the bond is 8 years, exit option is available after year 5

  • The permissible limit of investment is a minimum of 1 gm and a maximum of 4000 gms
  • Bonds can be kept in either demat or physical format
  • SGB can be traded on exchanges post listing. The listing date shall be notified by RBI

If interested please call us on 1800 419 4332

Why sovereign gold bonds

Sovereign gold bonds(SGB)are a better investment than physical gold because:

  • Lower Price than Physical Gold: Rs 50 lower than the prevailing price of Gold when applied Online
  • Higher Returns: An interest of 2.50% payable half yearly in addition to the returns on Gold
  • Convenience: Unlike Physical gold no Holding cost for Sovereign Gold Bonds

  • Safety: The bonds carry sovereign guarantee ( Issued by GOI)
  • Tax Benefit: No Capital gains Tax at maturity/redemption for individual investors, Indexation benefit if the same is transferred before maturity for Non individual investors
  • Liquidity: Investment can be used as a collateral for loans

If interested please call us on 1800 419 4332

How to invest in gold bonds?

  • Login with your internet banking User Name and password. To know more on how to create/retrieve your user ID and password, please Click here
  • After logging in to internet banking, Click on Investments in the left menu, followed by Sovereign Gold Bonds under it.
  • Enter the number of grams you wish to purchase, we will auto calculate the amount payable and display it to you.
  • In case you wish to get Sovereign Gold Bonds credited into your Demat account, then you can provide your Demat account number.
  • Review the details and click on the Purchase button to request for Sovereign Gold Bonds. Your selected account will be debited instantly and you will receive a notification via SMS on your registered mobile number.
  • You can download the cyber receipt in PDF or request for the same to be emailed to your registered e-mail ID.

Click Here to proceed to Login to Internet Banking and purchase

Are you eligible?

  • Resident Individuals
  • HUF's
  • Registered Entities like trust
  • Universities
  • Charitable Institutions
  • Societies and Clubs
  • Resident Individuals
  • HUF's
  • Registered Entities like trust
  • Universities
  • Charitable Institutions
  • Societies and Clubs
  • Partnership Firms
  • Pvt & Public Limited Companies

Know more

Ineligible

  • Non Resident Indians
  • Foreign Institutions and entities
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Frequently Asked Questions

What is SGB?

Sovereign gold bonds (SGB's) are issued by the Govt of India. They are a superior alternative to buying physical gold

Key Things to be Noted about Gold Bonds

  1. SGB are denominated in grams of gold (multiples of 1 gm)
  2. They pay interest of 2.50% every year over and above the gold returns.The interest is paid every 6 months
  3. Tenure of the bond is 8 years, exit option is available after year 5
  4. The permissible limit of investment is a minimum of 1 gm and a maximum of 4000 gms
  5. Bonds can be kept in either demat or physical format
  6. SGB can be traded on exchanges post listing. The listing date shall be notified by RBI

If interested please call us on 1800 419 4332

Why should I buy?

Sovereign gold bonds(SGB)are a better investment than physical gold because:

  • Lower Price than Physical Gold: Rs 50 lower than the prevailing price of Gold when applied Online
  • Higher Returns: An interest of 2.50% payable half yearly in addition to the returns on Gold
  • Convenience: Unlike Physical gold no Holding cost for Sovereign Gold Bonds
  • Safety: The bonds carry sovereign guarantee ( Issued by GOI)
  • Tax Benefit: No Capital gains Tax at maturity/redemption for individual investors, Indexation benefit if the same is transferred before maturity for Non individual investors
  • Liquidity: Investment can be used as a collateral for loans

If interested please call us on 1800 419 4332

What are the risks in buying SGB?

The risks are the same as buying physical gold. SGB prices are completely linked to Gold prices. The bonds are issued by the Govt. of India, and carry no risk of default.

Who is eligible to invest in SGB? Can minors/corporates also invest?

All Indian residents are eligible to invest (includes individuals, HUF’s, trusts, corporates, charitable institutions, minors etc). Joint holding of bonds is also allowed

What is the minimum and maximum investment limit for SGB?

SGB is issued in 1 gram of gold multiples. The minimum investment limit is 1 gram and the maximum is 4 Kgs per investor per financial year

How do I invest in SGB?

  • Login with your internet banking User Name and password. To know more on how to create/retrieve your user ID and password, please Click here

  • After logging in to internet banking, Click on Investments in the left menu, followed by Sovereign Gold Bonds under it.

  • Enter the number of grams you wish to purchase, we will auto calculate the amount payable and display it to you.

  • In case you wish to get Sovereign Gold Bonds credited into your Demat account, then you can provide your Demat account number.

  • Review the details and click on the Purchase button to request for Sovereign Gold Bonds. Your selected account will be debited instantly and you will receive a notification via SMS on your registered mobile number.

  • You can download the cyber receipt in PDF or request for the same to be emailed to your registered e-mail ID.
     

Click Here to proceed to Login to Internet Banking and purchase

How do I get confirmation of my investment in SGB? Can SGB be held in demat accounts?

Upon application, IDFC FIRST Bank shall issue an application number immediately to investor. Additionally, RBI issues certificates to all investors in SGB’s. The same shall be delivered by IDFC FIRST Bank. It usually takes 15-30 days post application for issue of certificates. SGB’s can also be held in demat accounts, if demat details are provided in the application form.

At what price do I buy SGB? What are the investment dates and allotment date?

The price of SGB is fixed by the RBI. The issue price of the Sovereign Gold Bond for the 13th Series of FY 17-18 has been fixed at Rs. 2866/- per gram of gold (Discounted by Rs 50/gm to Rs. 2816 for online application). The rate has been fixed on the basis of simple average of closing price for gold of 999 purity of the last 3 business days of the previous week published by the India Bullion and Jewellers Association Ltd. SGB issue dates are December 18, 2017 to December 20, 2017 with settlement on December 26, 2017.

When do the bonds mature? Can I sell the bond any time before maturity?

The maximum tenor of the bonds is 8 years. Early redemption is allowed after 5 years and can be done on any coupon payout date (30 day prior notice needs to be given to IDFC FIRST Bank) Additionally, Investors also have the option of selling the bonds anytime on exchanges (NSE/BSE), RBI shall enable the same shortly.

How is the maturity amount of SGB calculated? How will I be paid?

On redemption, the price of SGB shall be calculated basis the price movement of Gold. The same is fixed by the RBI, based on average gold prices a week prior to redemption (price of 999 purity gold as published by IBJA shall be considered by RBI). The funds shall be credited to your bank account as per details provided

What is the tax applicable on Interest and redemption? Is TDS deducted on income?

The interest received (2.75% every year) is taxable as interest income (as per current income tax rules) In case the bonds are redeemed (after 5 years), no capital gains tax needs to be paid No TDS shall be deducted either during redemption or interest payout. In case the bonds are sold on the exchange, capital gains tax is payable at the same rate as for physical gold. The capital gain rate currently is as below: For short term capital gains (if sold before 3 years): 30% plus applicable surcharges For long term capital gains (if sold after 3 years): 20% plus applicable surcharges, indexation benefit is available. Please note that the above does not constitute tax advice. Please contact your personal tax advisor for tax implication for your circumstances.

Is nomination facility available on SGB? How do I update nomination?

Yes, Nomination facility is available. Nominee details can be updated during investment or later.

How does the redemption process work? Where do I submit/get forms?

In case of early redemption (after 5 yrs), the investor needs to submit a signed form to IDFC FIRST Bank branch. The form needs to be submitted 30 days prior to redemption date. On maturity (after 8 years), funds shall be credited automatically to the IDFC FIRST Bank account of the investor. No instructions need to be submitted on maturity.

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Contact us

REGISTERED office:

IDFC FIRST Bank Ltd

KRM Tower, 7th Floor, No. 1,
Harrington Road, Chetpet,
Chennai - 600031, Tamil Nadu,
India

Corporate office:

IDFC FIRST Bank Ltd

Naman Chambers,
C-32, G-Block,
Bandra-Kurla Complex,
Bandra East, Mumbai - 400051,
India

IDFC FIRST Bank Customers

Toll Free No - 1800 419 4332
Email - Banker@idfcfirstbank.com

Capital First Customers

Toll Free No - 1860 500 9900
Email - Customer.Care@Capitalfirst.Com

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