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Sovereign Gold Bonds (SGB)

The smartest hedge against inflation

Sovereign Gold Bonds
Seamlessly Digital

Seamlessly Digital

100% digital investment journey

High return icon for SGB

Higher returns

2.50% interest over and above gold’s market price

Discounted rate

Discounted rate

INR 50/gram, Discount on online purchase

Sovereign Gold Bonds

With sovereign gold bonds, you can easily invest in gold without the hassle of storing physical gold. Don't miss out on the opportunity to safeguard your finances.

Read more...

Benefits of the Sovereign Gold Bond Scheme

SGB offers added benefit over other investments in gold-related assets. The advantages attached to SGB bonds are listed below:

Benefits of the Sovereign Gold Bond Scheme

Returns Higher than actual returns on gold in the form of annual 2.5% interest gains
Safety High
Purity High - Electronic Form
Capital Gains Tax Long Term Capital Gains after 3 years. No LTCG if held until maturity
Storage Cost NIL*

Benefits of the Sovereign Gold Bond Scheme

Returns Lower than actual returns on gold
Safety Low
Purity Questionable
Capital Gains Tax Long Term Capital Gain Tax applicable after 3 years
Storage Cost High

Benefits of the Sovereign Gold Bond Scheme

Returns Lower than actual returns on gold
Safety High
Purity High - Electronic Form
Capital Gains Tax Long Term Capital Gain Tax applicable after 3 years
Storage Cost Very Low

Features of Sovereign Gold Bond

Some of the features of this gold scheme are listed below:

Higher returns

2.50% interest over and above gold's market price

Discounted rate

₹50/gram Discount on online purchase

Sovereign guarantee

Guaranteed market value of gold at bond maturity

Tax benefits

Zero capital gains tax on maturity for individual investors

Image of a box icon for SGB

Eligibility for Sovereign Gold Bond Scheme 2022-23

Individuals residing in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, trusts, HUFs, universities, and charitable institutions. Individual investors with subsequent changes in residential status from resident to non-resident can continue to hold SGB till early redemption/maturity.

  

Steps to buy Sovereign Gold Bond

Individual customers can invest online by following these steps:

Step 1

Log in to IDFC FIRST Bank’s Internet Banking/Mobile application

Step 2

Go to the investments section

Step 3

Select Sovereign Gold Bond

Step 4

Enter desired quantity; the amount payable will be calculated and displayed

Step 5

Confirm details and complete your purchase

Frequently asked questions

What are Sovereign Gold Bonds (SGBs)?

Sovereign Gold Bonds SGBs are government-issued bonds that allow individuals to invest in gold in a financial form without owning physical gold.

Are SGBs backed by physical gold?

Yes, SGBs are backed by an equivalent amount of physical gold, and the government guarantees the repayment of the principal at maturity.

How can you invest in SGBs?

You can invest in SGBs by contacting your IDFC FIRST Bank Relationship Manager today, or purchase directly on the IDFC FIRST Bank netbanking app.

What is the minimum and maximum investment in SGBs?

The minimum investment is typically one gram of gold, and the maximum investment is usually 4 kilograms for individuals and 20 kilograms for trusts and similar entities per fiscal year.

Do SGBs pay interest?

Yes, SGBs pay fixed-rate interest on the investment amount, typically on a semi-annual basis.

What is the lock-in period for SGBs?

The lock-in period is typically eight years, but you can exit SGBs after the fifth year on specific interest payment dates.

Can you sell SGBs before maturity?

Yes, SGBs are tradable on stock exchanges, offering liquidity to you, should you wish to sell them before maturity.

Do SGBs offer tax benefits?

Yes, SGBs provide tax benefits on capital gains if held until maturity. They are exempt from capital gains tax when redeemed or sold.

Are SGBs considered a safe investment?

SGBs are considered a relatively safe investment because they are backed by the government. They provide the security of government backing for your gold investment.

Are SGBs suitable for long-term investment goals?

SGBs can be a suitable choice for long-term investors looking to accumulate gold for various purposes, including retirement or wealth preservation.

Can NRIs (Non-Resident Indians) invest in SGBs?

No, NRIs are not eligible to invest in SGBs.

More FAQs