The biggest advantage of Sovereign Gold Bond is that you get a fixed return and the government also guarantees security. SGB offers an annual return of 2.5 per cent.
Subscription between 1-5 March.
The Sovereign Gold Bond Scheme was launched by the government in November 2015 under the Gold Monetization Scheme. Since the launch, the interest of investors towards it has increased a lot. The Reserve Bank of India together with the central government launches it under different series. The Reserve Bank of India has decided to release the 12th Series SGB for the financial year 2020-21 between March 1-5. In this article, you will tell what are the major benefits of investing in gold bonds.
The biggest advantage of Sovereign Gold Bond is that you get a fixed return and the government also guarantees security. SGB offers an annual return of 2.5 per cent, which is available on a half-yearly basis. Due to not having physical gold, it does not require storage. Gold bond works like a liquid for you. It can be easily traded on the exchange. A 3 percent making charge is levied on physical gold separately. It does not take that. If you want to take a loan, then gold bonds can be used as collateral. Apart from this, there is no capital gains tax on bond redeem.
Bond is issued for 8 years
This bond is assumed equal to per gram. The bond is issued for 8 years although there is an option to withdraw at 5,6,7 years. At least 1 gram and maximum 4 grams can be invested in it. If you buy a bond, then only a maximum of 20 thousand can be paid in cash.
Online price Rs 4612 per gram
All SBI account holders can subscribe for sovereign gold bonds from any branch. Explain that under the 12th Series Sovereign Gold Bond Scheme, the new issue price of the bond has been fixed at Rs 4,662 per gram (Rs 46620 per ten gram). It has been decided to give a discount of 50 rupees per gram to online shoppers. For such investors, one gram gold bond will be issued at the rate of Rs 4,612. On taking ten grams of gold, the online price will be Rs 46120.
You can also subscribe online
SBI customers can also do this work online. For this, Internet banking has to be logged. The option of e-services will appear here. Click there and the page will open, where the option of Sovereign Gold Bond Scheme will appear. Click on this option and complete the further process. Interest income is taxed, while capital gains are completely tax free on redeeming bonds.
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