Sovereign Gold Bonds
Invest in Sovereign Gold Bonds (SGB) issued by the RBI - a paper-gold alternative that pays 2.5% annual interest plus gold price appreciation, with capital gains tax-free at maturity.
Required Documents
Step-by-Step Process
Check the Subscription Window
SGBs are issued in specific tranches announced by RBI/government during the year - check the current open subscription window on the RBI Retail Direct portal or your bank/broker.
Register on RBI Retail Direct (or Use Your Bank)
Create a Retail Direct Gilt account with PAN, Aadhaar, and bank details, or apply through your existing bank's net banking/branch.
Place Your Order
Enter the quantity of gold (in grams) you want to invest in, up to the maximum limit of 4 kg per individual per financial year.
Pay Online for a Discount
Pay via net banking or UPI to get a Rs 50 per gram discount on the issue price, applicable only for online applications.
Receive Certificate of Holding
You'll receive a Certificate of Holding (or credit to your Demat account) and earn 2.5% annual interest, paid semi-annually, over the 8-year tenure.
Pro Tips & Warnings
- SGBs are the only gold investment where capital gains are completely tax-free if held until maturity (8 years) - physical gold and gold ETFs don't offer this.
- Early exit is allowed after the 5th year on interest payment dates, or you can sell on the stock exchange anytime if held in Demat form.
- The 2.5% annual interest is taxable as per your income slab, but the gold price appreciation at maturity is tax-free - unlike physical gold, which attracts capital gains tax.