South Indian Bank Ltd. Head Office T.B Road, Mission Quarters, Thrissur 680 001,Kerala, India
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.
Investing in Sovereign Gold Bonds through South Indian Bank involves the following steps:
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.
The minimum investment is 1 gram of gold.
No additional charges apply for holding SGBs in physical or demat form.
The price is set in INR per gram of gold, based on the previous week’s average closing price of 999 purity gold.
Yes, minors can invest in SGBs through a guardian’s account.
If you become a non-resident, you’ll be able to retain your SGBs until maturity, but you won’t be eligible for new purchases.
Resident individuals, HUFs, Trusts, Universities, and Charitable Institutions are eligible to apply for SGBs.
FD Laddering Strategy: Maximize Returns with South Indian Bank’s Fixed DepositsRead more
SIB Her Haven: Our Vision to Fuel Women’s Home OwnershipRead more
Beyond Savings: How A Gold Loan Simplifies School ExpensesRead more
SIM Swap Frauds - Safeguard Your Financial SecurityRead more
Digital Must-Haves for Students & How to Afford Them the Smart WayRead more
School Reopening? Here's How a Gold Loan Can Ease the PressureRead more
Safe, Simple & Digital: Fixed Deposits with a Digital Edge for Gen ZRead more
Stay Alert: How to Protect Yourself from Investment ScamsRead more
8 Reasons to Choose Quick FD for Your Financial NeedsRead more
Spot the Fakes: A Guide to Secure Online PracticesRead more
©2025 south Indian Bank. All Rights Reserved
Disclaimer | Terms & Conditions | Privacy Policy