Sovereign Gold Bonds (SGB)
Invest in gold the smart way. SGBs issued by the Reserve Bank of India offer gold price appreciation plus 2.5% annual interest — and zero capital gains tax if held till maturity.
Why Sovereign Gold Bonds?
Issued by RBI on behalf of Government of India — zero default risk
2.5% annual interest (paid semi-annually) on top of gold price appreciation
No capital gains tax if held till maturity (8 years)
No storage cost, no making charges, no purity concerns
Can be traded on stock exchanges for liquidity
Available in demat or certificate form
Minimum investment: 1 gram of gold
Maximum investment: 4 kg per individual per financial year
Can be used as collateral for loans
Early exit allowed after 5 years on interest payment dates
SGB Key Details
SGB vs Physical Gold vs Gold ETF
| Feature | SGB | Physical | ETF |
|---|---|---|---|
| Interest | 2.5% | None | None |
| Storage | Free | Locker cost | Free |
| Making charges | None | 5-15% | None |
| LTCG Tax | Exempt* | 20% + indexation | 20% + indexation |
*If held till maturity (8 years)
Interested in Sovereign Gold Bonds?
SGBs are issued in tranches by RBI. We'll notify you when the next tranche opens and help you invest seamlessly. You can also buy existing SGBs on the stock exchange.
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