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Sovereign Gold Bond (SGB) 2025: Upcoming Issue, Premature Redemption, Interest Rate, Features and Benefits

Q: How to buy a sovereign gold bond from SBI Bank?

Following are the steps to invest in SGB via SBI bank:Log in to SBI net banking account.Click on ‘eServices’ and click on ‘Sovereign Gold Bond Scheme’.Click on ‘Purchase’, select your account number, select the ‘Terms and conditions’ box and click on ‘Proceed’Fill out the registration form and click on ‘Submit’.

By Mayashree Acharya

Updated on: May 5th, 2025

3 min read

Latest Update: The Sovereign Gold Bond upcoming issue is uncertain since the government aims to discontinue this bond. The RBI has not announced the issuance of any SGB for FY 2024-25.

Sovereign Gold Bonds are an ideal gold investment offered by the Reserve Bank of India (RBI) for people who want to own gold. They are an alternative investment mode for physical gold. Through SGBs, you can own gold in a digital form without its inherent risks or bearing making and wastage charges.

Learn more about the features, upcoming SGB issues, eligibility, interest rate and SGB premature redemption.

What is a Sovereign Gold Bond?

The Government of India introduced the Sovereign Gold Bond (SGB) in November 2015 under the Gold Monetisation Scheme to offer an alternative investment to physical gold.

SGBs are government securities and are considered safe. They are low-risk investments that provide returns. Their value is denominated in multiples of grams of gold. SGBs have witnessed a significant increase in investors, with it being considered a substitute for physical gold.

Sovereign Gold Bond Next Issue and Upcoming Issues

The Finance Minister stated that the government is considering to close the Sovereign Gold Bond Scheme in 2025 during a media interaction after the Budget 2024-25 session.

Thus, there are no issues of SGBs now. The details of the last issue of SGBs are as follows:

Sovereign Gold Bond 2023-24 Series IV

Subscription Period	Date of Issuance	Investment Limit	Interest	Issue Price Per Gram
12 February 2024 - 16 February 2024	21 February 2024	1 gm to 4 kg	2.5% per annum	Rs. 6,263 (For offline applications) Rs. 6,213 (For online applications)

Features of Sovereign Gold Bonds

Particulars	Features
Issuance of Bonds	Only RBI can issue SGBs
Bond Nature	SGBs are government-backed gold bonds
Denomination	Denominated in multiples of grams of gold
Interest Rate	2.50% per annum paid twice a year
Tenure	8 years
Minimum Investment	1 gram of gold
Maximum Investment	4 kg of gold for individuals and HUF 20 kg of gold for entities, trusts and universities
Risk	No risk with free storage
Redemption Price	Simple average closing price of gold with 999 purity in the previous 3 working days
Premature Redemption	Allowed from the fifth year

Eligibility of Sovereign Gold Bonds

The follwoing are eligible to subscribe for SGB:

Indian resident individuals
Individuals on behalf of a minor
Trusts
HUFs
Charitable institutions
Universities

How Does Sovereign Gold Bonds Work?

A person can apply for a Sovereign Gold Bond through their banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges, such as the Bombay Stock Exchange and National Stock Exchange of India Limited, either directly or through agents.

SGBs can also be bought online through the commercial banks’ websites authorised to sell them. Here's how SGBs works:

Purchase gold bonds from a bank, SHCIL or designated post offices.
If you have purchased a SGB online, it will reflect in the Demat account portfolio. In case of offline purchase, you can collect the SGB certificate from the holding from the issuing bank, post offices, SHCIL offices or designated agents.
You will get a 2.5% interest per annum.
You can redeem your SGB after 8 years or prematurely redeem them after 5 years.

Sovereign Gold Bond Redemption

When the issued SGB completes 8 years, it comes up for final redemption. The price for final redemption is determined based on the simple average closing price of gold with 999 purity in the previous three working days, as reported by the India Bullion and Jewellers Association Ltd (IBJA).

The RBI has fixed the final redemption price of Rs.8,624 per unit of SGB for the SGB launched in March 2017, which is due for final redemption on 17 March 2025. This price fixed is based on the simple average of closing gold price for the week of 10-13 March 2025.

Sovereign Gold Bond Premature Redemption Price

The price for redemption is determined based on the simple average closing price of gold with 999 purity in the previous three working days, as reported by the India Bullion and Jewellers Association Ltd (IBJA).

Investors can initiate early redemption of their SGBs after the fifth year from the date of SGB issuance, coinciding with the interest payment date. SGB 2018-19 Series II is up for premature redemption on 23 April 2025 at a price of Rs. 9,669 per unit per SGB.

Sovereign Gold Bond Benefits

Sovereign Gold Bonds provide guaranteed returns since it is a government-backed scheme.
You can earn a guaranteed annual interest at the rate of 2.50% (on the issue price).
Long-term capital gains arise when investors transfer bonds qualify for indexation benefits. There is also a sovereign guarantee on the principal and the interest earned.
You can trade gold sovereign bonds on stock exchanges within a specific date (at the issuer's discretion). For instance, after completing five years of investment, you can trade them on the National Stock Exchange or Bombay Stock Exchange, among others.
Some banks accept SGB as collateral/security against loans pledged in Demat form. Hence, they will treat it as a gold loan after setting the loan-to-value (LTV) ratio to the value of gold. The India Bullion and Jewellers Association Limited determines this.

Sovereign Gold Bond Price History

The price history of SGB for FY 2023-24 is as follows:

Series	Month	Price per Gram
Series 1	June 2023	Rs. 5,926
Series 2	September 2023	Rs. 5,923
Series 3	December 2023	Rs. 6,199
Series 4	February 2024	Rs. 6,263

Sovereign Gold Bond Tax Exemption Under Section 80C

There are no tax deduction benefits for the lump sum deposit of SGBs under Section 80C of the Income Tax Act. The interest given on SGB deposits is also not tax-free. The interest amount must be declared under ‘Income from Other Sources’ during tax returns. The income tax will be as per the individual’s income tax slab. Tax Deducted at Source (TDS) is not applicable on SGBs. However, they are exempt from capital gains tax when held till maturity.

Gold Sovereign Bonds are new-age investment vehicles for those interested in diversifying their portfolio with gold holdings.

How to Buy Sovereign Gold Bonds Online?
Gold Investment in India- How to Invest, Options, Benefits

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Frequently Asked Questions

Is it safe to invest in sovereign gold bonds?

An SGB is issued as per the Government Security Act, 2006, by the RBI on behalf of the central government. Since it is backed by the government, it is one of the safest forms of investment as the chances of defaults on repayment are zero.

Which bank is best to invest in sovereign gold bonds?

The gold bonds are sold through the branches or offices of nationalised banks, designated post offices, scheduled foreign banks and scheduled private banks. You can choose any bank to invest in SGBs. It is recommended to apply for an SGB where you have a bank account.

Are sovereign gold bonds tax-free?

The annual interest paid on SGBs of 2.5% is taxable at a marginal slab rate. However, when you withdraw the lump sum amount upon maturity, no capital gains apply to them.

Is the interest on sovereign gold bonds taxable?

Yes. Interest on the SGBs will be taxable as per the provisions of the Income-tax Act, 1961.

How to buy a sovereign gold bond in Zerodha?

You can place an SGB purchase order by logging into Zerodha's Gold Bond Page. You can also log in to the Coin by Zerodha dashboard and click on ETFs and SGBs to invest in the Sovereign Gold Bond scheme. You need to click on the ‘Sovereign Gold Bond investment’ option, fill in the required details and click the ‘Place order’ button to invest in SGB.

How to buy a sovereign gold bond from SBI Bank?

Following are the steps to invest in SGB via SBI bank:

Log in to SBI net banking account.
Click on ‘eServices’ and click on ‘Sovereign Gold Bond Scheme’.
Click on ‘Purchase’, select your account number, select the ‘Terms and conditions’ box and click on ‘Proceed’
Fill out the registration form and click on ‘Submit’.

How to redeem sovereign gold bonds?

You can redeem the SGBs up on maturity, i.e. after completion of the 8th year or partially after the 5th year. After the maturity period of eight years, both interest and redemption proceeds will be credited to the bank account provided at the time of buying the bond.

How to sell sovereign gold bonds?

You can sell SGBs in secondary markets through stock brokers or transfer them in the name of third persons by using Delivery Instruction Slip (DIS) slips. Currently, only a few stockbrokers are selling SGBs in the secondary market, such as Zerodha and Upstox. If your stock broker is not allowed to sell gold bonds in the secondary market, you have the following options to sell SGBs:

You have to sell your gold bonds by using DIS slip to a known person
Approach your stock broker and ask him to place an order to sell the gold bonds in the secondary market
Open a new Demat account with stock brokers who sell and buy SGBs in the secondary market and transfer the existing holding by using DIS slip

Is sovereign gold bond a good investment?

Yes, it offers a lucrative, efficient and economical mode of holding gold compared to physical gold. They are productive assets earning interest and have the additional benefits of a sovereign guarantee.

Can NRIs invest in sovereign gold bonds?

No, NRIs (Non-Resident Indians) are not eligible to purchase SGBs. However, if a resident becomes NRI after purchasing an SGB, then he/she can continue to hold the SGB until maturity.

What happens when I invest for 8 years in a sovereign gold bond?

After 8 years, the SGBs mature, and the interest and redemption proceeds will be credited to the bank account. You will be informed about its maturity status one month before the maturity date. If there is any change in details, such as email IDs, account numbers, etc., you must inform the bank, post office or SHCIL where you bought the SGB regarding the change.

Can nominees claim the sovereign gold bond amount upon the death of the investor?

Yes, a nominee can approach the respective bank where the investor had purchased the SGB and file the claim. If there is no nomination for SGB, the executors or administrators of the deceased holder or the holder of the succession certificate can submit a claim to the respective bank, receiving offices or depository.

About the Author

Mayashree Acharya

Senior Content Writer

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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