Investment

Invest in Gold Smartly with Sovereign Gold Bonds

Backed by the Government of India and issued by the RBI, SGBs are a trusted, hassle-free alternative to physical gold. Designed for investors seeking a safe and cost-effective investment option, SGBs provide the added benefits of assured interest earnings, potential capital appreciation, and tax benefits. Free from storage concerns or theft risks, SGBs blend the security of sovereign guarantees with the appeal of gold investments.

Features of Sovereign Gold Bonds

Benefit from potential growth in gold’s market value.
Trade conveniently on exchanges for added liquidity.
Tax-free long-term capital gains
Easy and hassle free investing
  • Enjoy guaranteed annual interest on investment amount
  • Diversified investment portfolio
  • Government-backed reliable investment
  • Invest from just 1g gold
  • Easy registration and bond issuance with SIB — invest in SGBs in just a few steps.
  • Enjoy an assured interest rate of 2.5% per annum on gold investment. It is paid every 6 months, providing you with consistent returns.
  • Trade your SGBs on exchanges with ease, offering liquidity and flexibility to your investment.
  • Seek guidance from our expert team at SIB — Our professionals are here to assist you, ensuring your investment aligns with your financial goals.
Sl.No Tranche 2023-24 Period of Subscription Date of Issuance Issue Price (Rate per gram of gold) Tranche Status
Offline rate Online rate
1 Series IV February 12 to February 16, 2024 February 21, 2024 Rs.6,263/- Rs.6,213/- Open

Investing in Sovereign Gold Bonds through South Indian Bank involves the following steps:

  • Registration
    Open an account with South Indian Bank.
  • Subscription
    Log into SIBerNET/SIB Mirror+ and navigate to “Investments.” From there, you can apply for the Sovereign Gold Bond. A discount of ?50/- per gram is applicable for applications placed through our digital channels. You can also visit any SIB branch to physically submit your SGB application along with a copy of your PAN card.
  • Bond Issuance
    Bonds are issued in physical or demat form. SGB units are tradeable if held in demat form.

QUESTIONS & ANSWERS

Frequently Asked Questions

To get answers to the frequently asked queries

The current interest rate of SGBs is 2.5% per annum, paid semi-annually.

The redemption price is based on the simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Ltd.

Yes, capital gains arising on redemption are exempt from tax, if held till maturity. However, interest earned is taxable.

Yes, SGBs are tradable on stock exchanges, if held in demat form.

Premature redemption is allowed after the 5th year, aligned with interest payment dates.

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