The upcoming Sovereign Gold Bonds in 2024-25 bring with them several attractive
features for investors. One of the primary features is the fixed interest rate offered, generally around 2.50% per annum, payable semi-annually. Investors benefit from price appreciation as well as regular interest payments. Another notable feature is the bonds' tenure, typically eight years, with an option for premature redemption after five years. These bonds are backed by the Government of India, ensuring a secure investment option. Additionally, SGBs are tradable on stock exchanges, offering liquidity to investors who may wish to exit before maturity. The bonds can be purchased in denominations of one gram of gold, making them accessible for small investors. Tax benefits on capital gains and the ability to use SGBs as collateral for loans add further appeal to this investment instrument. The upcoming series is likely to continue with these investor-friendly features.
Understanding the upcoming sovereign gold bond issues
Sovereign Gold Bonds (SGBs) are part of a government initiative aimed at providing an alternative to physical gold investments. The upcoming SGB issues in 2024-25 are expected to follow a similar structure to previous series, offering investors a safe and secure way to invest in gold. These bonds are issued in tranches, with dates announced in advance. They offer a fixed interest rate, alongside the potential appreciation of gold prices, providing a dual source of returns. The bonds are available for a tenure of eight years, with an option for early redemption. For investors looking to diversify their portfolios, SGBs present an excellent opportunity to benefit from the long-term appreciation of gold. Additionally, these bonds offer tax benefits on capital gains if held until maturity. The upcoming issues will continue to serve as a convenient and profitable alternative to holding physical gold.
How to subscribe to the upcoming sovereign gold bond?
Subscribing to the upcoming Sovereign Gold Bond (SGB) is a straightforward process. First, investors must monitor the official RBI notifications for the issue dates. Once announced, bonds can be subscribed to through various channels such as designated banks, post offices, and recognised stock exchanges like NSE and BSE. Investors can fill in the application form online or at their nearest bank branch. It is essential to have a PAN card, as this is mandatory for the subscription. Once the form is completed, investors can make payments via internet banking, UPI, or direct bank transfers. After the payment is processed, the bond details, including certificate numbers, are sent to the investor’s email. The bonds are then credited to the investor's demat account. These steps ensure a hassle-free way to subscribe and start benefiting from gold price appreciation and fixed interest income.
Upcoming sovereign gold bond: Application process and deadlines
The application process for the upcoming Sovereign Gold Bond (SGB) follows a clear structure to ensure that investors can participate smoothly. Firstly, the Reserve Bank of India (RBI) issues a notification announcing the dates for the new bond issuance. Investors need to apply during the subscription window, which typically lasts for five days. Applications can be submitted online through designated banks, stock exchanges, or post offices. A PAN card is required for the application, and payments can be made using various digital channels, including internet banking and UPI. Once the subscription is completed, investors receive a bond certificate through email or directly in their demat accounts. The bonds are issued one week after the subscription closes. To avoid missing out, it’s crucial to apply within the deadlines specified in the official notification, as late submissions are not accepted.
Sovereign gold bond price history
| Year | Issue Price (per gram) | Average Gold Price (per gram) |
| 2019-20 | ₹3,214 | ₹3,250 |
| 2020-21 | ₹4,877 | ₹4,900 |
| 2021-22 | ₹4,791 | ₹4,800 |
| 2022-23 | ₹5,197 | ₹5,215 |
| 2023-24 | ₹5,975 | ₹6,000 |
The table above shows the price history of Sovereign Gold Bonds (SGBs) over the past few years. The issue price is determined by the average price of gold in the preceding week and offers a valuable insight for investors considering the next issue.
Step-by-step guide to investing in upcoming sovereign gold bonds
Check issue dates: Monitor RBI announcements or financial portals for upcoming SGB issue dates.
Choose your channel: Decide if you will subscribe through a bank, stock exchange, or post office.
Fill out the application: Obtain the application form online or at the bank/post office.
Provide PAN: Ensure your PAN card details are ready as they are mandatory for SGB subscription.
Payment: Make the payment through internet banking, UPI, or NEFT/RTGS.
Receive bond certificate: Once processed, you will receive a bond certificate via email or in your demat account.
Track investment: Keep track of your investment through your demat account or by storing the bond certificate safely.
What’s new in the upcoming sovereign gold bond scheme 2024-25?
The upcoming Sovereign Gold Bond Scheme for 2024-25 introduces a few new features aimed at enhancing investor convenience. One of the significant updates is the simplification of the subscription process, allowing more efficient online application methods through mobile banking and dedicated apps. Additionally, there are new financial incentives for early bird subscribers, including potential discounts on the issue price if applied through digital platforms. The interest rate remains stable at 2.50% annually, but the government may introduce small tweaks in taxation policies, further enhancing the scheme's attractiveness. The bonds will continue to be tradable on stock exchanges, increasing liquidity options for investors. As part of the digitisation push, real-time tracking of gold price trends will be available to investors via official portals, helping them make informed decisions on their investments.
Key highlights of the upcoming sovereign gold bond scheme 2024-25
Tenure: 8 years with early redemption available after 5 years.
Interest rate: Fixed at 2.50% per annum, payable semi-annually.
Issue price: Determined based on the average gold price of the preceding week.
Eligibility: Available to Indian residents, HUFs, trusts, universities, and charitable institutions.
Tradability: Bonds are tradable on stock exchanges, offering liquidity.
Minimum purchase: 1 gram of gold.
Tax benefits: Exempt from capital gains tax if held till maturity.
Collateral: Bonds can be used as collateral for loans.
Next sovereign gold bond issue date: Important dates to remember
Issue announcement: Keep track of RBI notifications for official bond issuance schedules.
Application window: The subscription period generally lasts five days.
Issue date: Bonds are usually issued one week after the subscription window closes.
Interest payment dates: Semi-annual payments will be credited on specified dates during the bond’s tenure.
Early redemption date: Available after five years from the issuance date.
Sovereign gold bond maturity period
Sovereign Gold Bonds (SGBs) have a maturity period of eight years, making them a long-term investment option. During this tenure, investors benefit not only from the appreciation in gold prices but also from a fixed interest rate of 2.50% per annum. However, if investors need liquidity before the eight-year term, they have the option of premature redemption after five years, aligning with the interest payment dates. Additionally, investors can trade the bonds on stock exchanges after a lock-in period, providing flexibility for those seeking an early exit. Upon maturity, the principal amount is based on the current market price of gold, providing a hedge against inflation and market volatility. For those who hold the bond until maturity, the capital gains are exempt from tax, enhancing the appeal of this investment vehicle.
Sovereign gold bond maturity redemption
Upon reaching the maturity of the eight-year period, Sovereign Gold Bonds (SGBs) are automatically redeemed. The redemption amount is calculated based on the prevailing market price of gold at the time of maturity. Investors are notified about the redemption process through their registered email or by their bank, and the proceeds are directly credited to their linked bank accounts. This process ensures that investors benefit from the long-term appreciation in gold prices without any additional hassle. Those who wish to redeem their bonds before the maturity period can do so after the fifth year on designated interest payment dates. Importantly, capital gains from SGBs held until maturity are exempt from tax, making them an attractive investment option for those looking for both returns and tax benefits.
Sovereign gold bond premature redemption price
Sovereign Gold Bonds (SGBs) offer the flexibility of premature redemption after the fifth year, in case investors need liquidity. The redemption price in such cases is determined based on the prevailing gold prices, as published by the India Bullion and Jewellers Association (IBJA). Investors can choose to redeem their bonds on specific dates that coincide with the interest payout periods, ensuring they receive both the accrued interest and the redemption amount. However, unlike maturity redemption, the capital gains from premature redemption may be subject to taxes. This option provides a valuable exit strategy for those who may require funds before the bond’s eight-year maturity. The redemption process is straightforward, with proceeds credited directly to the investor’s bank account.
Sovereign gold bond interest rate/return
Fixed interest rate: The SGB scheme offers a 2.50% annual interest rate.
Payment frequency: Interest is payable semi-annually to bondholders.
Return on gold price: Investors benefit from both fixed interest and the appreciation of gold prices.
Tax exemption: Interest earned is taxable, but capital gains on maturity are exempt from tax.
Guaranteed income: Provides a steady, guaranteed income stream, apart from gold price fluctuations.
Sovereign gold bond maximum limit
Maximum limit for individuals: The maximum subscription limit is 4 kilograms of gold per fiscal year.
Maximum limit for HUFs: Hindu Undivided Families (HUFs) can purchase up to 4 kilograms per fiscal year.
Maximum limit for trusts: Trusts, universities, and charitable institutions can subscribe to up to 20 kilograms of gold per fiscal year.
Minimum purchase: The minimum allowable purchase is 1 gram of gold.
Annual limits: These limits are set annually by the Reserve Bank of India.
How to buy a sovereign gold bond online?
Select platform: Choose a bank or stock exchange's online portal to apply.
Login: Use your internet banking credentials to log in.
PAN requirement: Ensure you have your PAN card details ready, as it is mandatory.
Select SGB: Choose the SGB issue available for subscription.
Payment: Complete the payment via internet banking or UPI.
Receive confirmation: Once payment is successful, you will receive a confirmation and the bond certificate in your email or demat account.
