Sovereign Gold Bonds
Invest in gold without the storage hassle. Earn 2.5% fixed interest plus gold price appreciation, with the safety of a government-issued security.
2.5% fixed interest
Earn 2.5% per annum on the issue price, paid semi-annually, in addition to gold price gains.
Government-backed
Issued by RBI on behalf of the Government of India. No counterparty risk on the principal.
Tax-free on maturity
Capital gains on redemption at maturity (after 8 years) are exempt from tax for individual investors.
8-year tenor, 5-year exit
Tenor of 8 years with the option to exit on coupon dates after 5 years through the secondary market.
Subscribe to the next tranche
SGB tranches are issued periodically by the RBI. Open a free SBI Securities account now to be notified the moment the next tranche opens.
Open free accountFAQs
What is a Sovereign Gold Bond?
SGBs are government securities denominated in grams of gold. They are issued by the RBI on behalf of the Government of India and serve as a substitute for holding physical gold.
How is the issue price decided?
The issue price is fixed by the RBI based on the simple average of closing prices of 999-purity gold for the last three working days before the issue, as published by IBJA. Online subscribers receive a ₹50 per gram discount.
How is interest paid and taxed?
Interest of 2.5% per annum is paid on the original issue price, semi-annually, directly into the registered bank account. Interest is taxable as per the investor's slab. Capital gains at maturity are tax-free.
Can I exit before maturity?
Yes. SGBs can be exited via the secondary market on the exchanges (subject to liquidity), or by surrendering to the RBI on coupon dates after the 5th year.
How do I buy SGBs through SBI Securities?
When a tranche is open, log in to your SBI Securities account, go to the SGB / Bonds section, choose the desired tranche, and place a bid. Allotment is confirmed via email and reflected in your demat account.