sovereign gold bond

Sovereign Gold Bond

Sovereign Gold Bonds are government securities issued by the Reserve Bank of India (RBI) on behalf of the Government of India.

  • Attractive Interest with asset appreciation opportunity
  • Redemption is linked to Gold Price
  • Exempt from Capital gains tax, if held till maturity

Benefit of SGBs


The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.


There is no need for storage or safety of gold under this scheme, as the gold isn’t physically given to an investor immediately.

Sovereign guarantee

SGB comes with a assured fixed rate interest per annum on the initial investment, making it a lucrative investment opportunity.


Investor can exit the bond at the end of 5th , 6th or 7th year.


Any resident Indian entity including HUFs, individuals, Trusts, Universities and Charitable institutions can invest in the sovereign gold bond.


Bonds are denominated in whole number multiples of one gram of gold.

Minimum value

The minimum permissible investment in sovereign gold bonds is equivalent to one gram of gold.

Cap on value

Individuals and HUFs can invest in a maximum of 4kg worth of gold bonds. Trusts and other similar entities can invest in up to 20kg worth of gold bonds. The limit is periodically revised by the Government of India.

How much interest rate

Sovereign gold bond scheme is a fixed interest rate. The gold bond interest rate is 2.50% every year over. Remember, this is over and above the gold price return. The interest is paid every six months on the nominal value.

Tenure of Investment

Sovereign gold bonds have a tenure of eight years. Investors can exercise an exit option from the fifth year onwards. The exit option can only be exercised on the day the interest is payable.


Redemption price of the sovereign gold bond is equal to the simple average of the closing price of gold of 999 purity of previous 3 business days. The price published by the Indian Bullion and Jewelers Association Limits is used for this calculation.


SGBs Upcoming Issue

TrancheDate of Subscription
2020-21 Series X11 Jan to 15 Jan 2021
2020-21 Series XI1 Feb to 5 Feb 2021
2020-21 Series XII1 Mar to 5 Mar 2021

What are gold Bonds

A sovereign gold bond is denominated in grams of gold. You can get in multiples of 1 gram.

Minimum investment is 1 gram.


Sovereign Gold Bond Series History


Sovereign Gold Bond 2020-21 Details

NameDatePriceMaturity DtInterestNSE Code
2020-21 Series IX05 Jan 20214,950Jan 20292.5%SGBJ29IX
2020-21 Series VIII18 Nov 20205,127Nov 20282.5%SGBN28VIII
2020-21 Series VII20 Oct 20205,001Oct 20282.5%SGBOC28VII
2020-21 Series VI08 Sep 20205,067Sep 20282.5%SGBSEP28VI
2020-21 Series V11 Aug 20205,284Aug 20282.5%SGBAUG28V
2020-21 Series IV14 Jul 20204,802Jul 20282.5%SGBJUL28IV
2020-21 Series III16 Jun 20204,627Jun 20282.5%SGBJUN28
2020-21 Series II22 May 20204,540May 20282.5%SGBMAY28
2020-21 Series I28 Apr 20204,589Apr 20282.5%SGBAPR28I


Sovereign Gold Bond 2019-20 Details


NameDatePriceMaturity DtInterestNSE Code
2019-20 Series X11 Mar 20204,210Mar 20282.5%SGBMAR28X
2019-20 Series IX11 Feb 20204,020Feb 20282.5%SGBFEB28IX
2019-20 Series VIII21 Jan 20203,966Jan 20282.5%SGBJ28VIII
2019-20 Series VII10 Dec 20193,745Dec 20272.5%SGBDC27VII
2019-20 Series VI30 Oct 20193,785Oct 20272.5%SGBOCT27VI
2019-20 Series V15 Oct 20193,738Oct 20272.5%SGBOCT27
2019-20 Series IV17 Sep 20193,840Sep 20272.5%SGBSEP27
2019-20 Series III14 Aug 20193,449Aug 20272.5%SGBAUG27
2019-20 Series II16 Jul 20193,393Jul 20272.5%SGBJUL27
2019-20 Series I11 Jun 20193,146Jun 20272.5%SGBJUN27


Sovereign Gold Bond 2018-19 Details


NameDatePriceMaturity DtInterestNSE Code
2018-19 Series VI12 Feb 20193,276Feb 20272.5%SGBFEB27
2018-19 Series V22 Jan 20193,164Jan 20272.5%SGBJAN27
2018-19 Series IV01 Jan 201930,69Jan 20272.5%SGBDEC26
2018-19 Series III13 Nov 20183,133Nov 20262.5%SGBNOV26
2018-19 Series II23 Oct 20183,096Oct 20262.5%SGBOCT26
2018-19 Series I04 May 20183,064May 20262.5%SGBMAY26


Sovereign Gold Bond 2017-18 Details

NameDatePriceMaturity DtInterestNSE Code
2017-18 Series XIV01 Jan 20172,831Jan 20262.5%SGBJAN26
2017-18 Series XIII26 Dec 20172,816Dec 20252.5%SGBDEC2513
2017-18 Series XII18 Dec 20202,840Dec 20252.5%SGBDEC2512
2017-18 Series XI11 Dec 20172,902Dec 20252.5%SGBDEC25XI
2017-18 Series X04 Dec 20172,911Dec 20252.5%SGBDEC25
2017-18 Series IX27 Nov 20172,914Nov 20252.5%SGBNOV25IX
2017-18 Series VIII20 Nov 20172,911Nov 20252.5%SGBNOV258
2017-18 Series VII13 Nov 20172,884Nov 20252.5%SGBNOV25
2017-18 Series VI06 Nov 20172,895Nov 20252.5%SGBNOV25VI
2017-18 Series V30 Oct 20172,921Oct 20252.5%SGBOCT25V
2017-18 Series IV23 Oct 20172,937Oct 20252.5%SGBOCT25IV
2017-18 Series III16 Oct 20172,906Oct 20252.5%SGBOCT25
2017-18 Series II28 Jul 20172,780Jul 20252.5%SGBJUL25
2017-18 Series I12 May 20172,901May 20252.5%SGBMAY25

Sovereign Gold Bond 2016-17 Details

2016-17 Series IV17 Mar 20172,893Mar 20252.5%SGBMAR25
2016-17 Series III17 Nov 20162,957Nov 20242.5%SGBNOV24
2016-17 Series II23 Sep 20163,150Sep 20242.5%SGBSEP24
2016-17 Series I05 Aug 20163,119Aug 20242.5%SGBAUG24

Sovereign Gold Bond 2015-16 Details

2014-15 Series I26 Nov 20152,684Feb 20232.5%SGBNOV23

Advantage of  Sovereign Gold Bonds


Absolute Safety

Sovereign Gold Bonds carry none of the risks that are associated with physical gold, except the market risks. 


Extra Income

You can earn a guaranteed annual interest at the rate of 2.50% (on the issue price)



Some banks accept SGB as collateral/security against secured loans.


What are benefit of buying these bonds in comparison to physical gold?

No impurity risk – These bonds are denoted by 999 purity.

No Storage risk or cost of storage – Storing physical gold could be a risky affair and involve storage/locker/insurance charges. None of these are applicable for SGBs.

No default / Counterparty Risk – Physical gold holders could be exposed to counterparty risk, whereas SGBs are backed by the government & issued by RBI on behalf of the central government.

No GST or STT – Purchase of physical gold attracts GST. SGBs do not attract GST & there is no GST charges on SGB trades.

Is Capital Gain Tax payable on gains in SGB?

In case the SGBs are encashed by way of redemption by an individual from the RBI, no capital gains tax is payable.

In case the SGBs are sold before the maturity date on the exchanges, then this exemption is not available.

In such a case, the Capital Gains will be levied (Long term or Short term based on whether it is held for 3 years or more or less than 3 Years) at the applicable rates i.e. short term (at applicable rates to the investor) and long term (20% after indexation)

What is tax treatment on sovereign gold bondS

The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961).

The capital gains tax arising on redemption of SGB to an individual has been exempted.

The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.

Are there any risks in investing in Sovereign Gold Bond?

There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for.

How will I get the redemption amount?

Both interest and redemption proceeds will be credited to the bank account number furnished in the application form.

Can a Minor invest in SGB?

Yes. The application on behalf of the minor can be made by his / her guardian through a branch. Minor account holders cannot apply for SGB in the online mode.

Is the maximum limit of 4 kg applicable in case of joint holding?

The maximum limit will be applicable for the first applicant in case of a joint holding for the specific application.

Can I take loan against Sovereign Gold Bond?

Yes, you can take loan against Sovereign Gold Bonds.

The loans to value ratio for loans against SGB will be same as that for gold loans.

What happens to SGB after maturity?

You redeem the bond after eight years. SGB doesn’t attract any capital gain tax on redemption after eight years. However, this benefit is available only to individual investors.
Suppose you have bought SGB at the rate of Rs 2,860 per gram and redeemed it after eight years at Rs 5,700. Your capital gain from the transaction Rs 2,840 is exempted from capital gain tax.

  • The investor is informed one month before the date of redemption
  • On the date of redemption, the value will get credited to your bank account
  • If there is any change in the bank account or email address details, you should intimate the concerning bank/SHCIL/PO upfront.