SGB
Sovereign Gold Bonds
The smartest way to invest in gold. Government-backed bonds with 2.5% annual interest and tax-free returns at maturity.
2.5%
Annual Interest
8 Years
Tenure
Tax Free
At Maturity
Government Backed
Issued by RBI on behalf of Government of India
2.5% Interest
Earn additional 2.5% p.a. interest on your investment
Tax Benefits
Capital gains tax exempt on redemption at maturity
8 Year Tenure
Exit option available after 5 years
SGB vs Other Gold Investments
Why SGB is the smartest way to own gold
| Aspect | SGB | Physical Gold | Gold ETF |
|---|---|---|---|
| Storage | No physical storage needed | Locker/safe required | Demat account |
| Interest | 2.5% p.a. | None | None |
| Tax on Maturity | Exempt | LTCG applies | LTCG applies |
| Making Charges | None | 10-25% | Expense ratio |
| Purity Concern | None | Verification needed | None |
Benefits of SGB
No risk of theft or storage issues unlike physical
gold
2.5% annual interest in addition to gold price
appreciation
Capital gains tax exempt if held till maturity
Can be used as collateral for loans
Tradeable on stock exchanges for liquidity
₹50 discount per gram for online application
Denominated in grams - minimum 1 gram investment
No GST or making charges unlike physical gold
Invest in Gold the Smart Way
Open your account and start investing in Sovereign Gold Bonds