Sovereign Gold Bond Scheme 2021 Series V subscription CLOSES TODAY - Check BENEFITS, DISCOUNTS, INTEREST RATES and other details here
SBI Sovereign Golden Bond 2021: The individuals interested in investing in Sovereign Gold Bonds (SGB) must note that today, August 13, 2021, is the last date for subscription in Sovereign Gold Bond (SGB) Scheme 2021-22 - Series V. There is a special discount for the State Bank of India (SBI) customers as they will be getting Rs 50 off per gram if they apply online.
Now, the individuals willing to invest in SGBs must know certain things. They are as follows:
What is SGBs?
Sovereign Gold Bond Scheme was launched by the government in November 2015, under Gold Monetisation Scheme. Under the scheme, the issues are made open for subscription in tranches by the Reserve Bank of India (RBI) in consultation with the government of India. The interested customers must note that the SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. Source: Reuters
What are the benefits of investing in SGBs?
The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip and other issues. Source: Reuters
Rate of interest
The individuals interested in investment in SGBs must note that the bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal. Source: Reuters
Eligibility for investing in SGB?
The people residing in India who are defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. The eligible investors include individuals, HUFs, trusts, universities and charitable institutions. The individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity. Source: Reuters