{"id":21413,"date":"2025-09-15T09:42:05","date_gmt":"2025-09-15T09:42:05","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?p=21413"},"modified":"2025-09-15T09:42:05","modified_gmt":"2025-09-15T09:42:05","slug":"what-is-sovereign-gold-bonds","status":"publish","type":"post","link":"https:\/\/wp-api.pocketful.in\/blog\/what-is-sovereign-gold-bonds\/","title":{"rendered":"What is Sovereign Gold Bonds?\u00a0"},"content":{"rendered":"\n<p>Indians have cherished gold for generations, not only for its use as jewellery but also as an effective means to store wealth. Today&#8217;s investors have a better, smarter alternative to the coins and ornaments our grandparents saved: Sovereign Gold Bonds (SGBs).<\/p>\n\n\n\n<p>SGBs, which are issued by the Reserve Bank of India, backed by the government, allow you to have gold ownership without being concerned about purity, safety, or storage. Additionally, they give you interest as the value of your gold investment steadily increases.<\/p>\n\n\n\n<p>In this blog, we will explain what SGBs are, how they work, and why they might be a great addition to your investment portfolio.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-sovereign-gold-bonds\/#Understanding_Sovereign_Gold_Bonds\" title=\"Understanding Sovereign Gold Bonds\u00a0\u00a0\">Understanding Sovereign Gold Bonds\u00a0\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-sovereign-gold-bonds\/#Key_Features_of_Sovereign_Gold_Bonds\" title=\"Key Features\u00a0of Sovereign Gold Bonds\u00a0\u00a0\">Key Features\u00a0of Sovereign Gold Bonds\u00a0\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-sovereign-gold-bonds\/#Advantages_of_Investing_in_Sovereign_Gold_Bonds\" title=\"Advantages of Investing in Sovereign Gold Bonds\u00a0\">Advantages of Investing in Sovereign Gold Bonds\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-sovereign-gold-bonds\/#Why_did_Government_Stop_Issuing_New_SGBs\" title=\"Why did Government Stop Issuing New SGBs\u00a0\">Why did Government Stop Issuing New SGBs\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-sovereign-gold-bonds\/#How_to_buy_SGBs_in_the_Secondary_Market\" title=\"How to buy SGBs in the Secondary Market\">How to buy SGBs in the Secondary Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-sovereign-gold-bonds\/#Who_Should_Invest_in_Sovereign_Gold_Bonds\" title=\"Who Should Invest in Sovereign Gold Bonds\u00a0\u00a0\">Who Should Invest in Sovereign Gold Bonds\u00a0\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-sovereign-gold-bonds\/#Conclusion\" title=\"Conclusion\u00a0\">Conclusion\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-sovereign-gold-bonds\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-understanding-sovereign-gold-bonds\"><span class=\"ez-toc-section\" id=\"Understanding_Sovereign_Gold_Bonds\"><\/span>Understanding Sovereign Gold Bonds\u00a0\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Sovereign Gold Bonds (SGBs) are a convenient way to invest in gold without actually buying or storing the metal. Issued by the Reserve Bank of India (RBI) on behalf of the Government of India, these bonds are among the safest gold investment options available.<\/p>\n\n\n\n<p>Instead of keeping physical gold at home or in a locker, investors purchase these bonds, which are linked to the prevailing market price of gold. As gold prices rise, the value of your SGB investment rises accordingly.<\/p>\n\n\n\n<p>What makes SGBs unique is that they not only mirror the price of gold but also pay an assured interest of <strong>2.5% per year<\/strong>, credited semi-annually to your bank account. This additional return is something you won\u2019t get with physical gold or even gold ETFs.<\/p>\n\n\n\n<p><strong>Read Also:<\/strong>\u00a0<a href=\"https:\/\/www.pocketful.in\/blog\/electoral-bonds-explained-what-are-they-and-why-did-supreme-court-ban-it\/\">Electoral Bonds Explained: What Are They and Why Did Supreme Court Ban It?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-features-of-sovereign-gold-bonds\"><span class=\"ez-toc-section\" id=\"Key_Features_of_Sovereign_Gold_Bonds\"><\/span>Key Features\u00a0of Sovereign Gold Bonds\u00a0\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-1-denomination\">1. Denomination<\/h3>\n\n\n\n<p>You can buy SGBs in amounts of 1 gram of gold or more. It&#8217;s great if you want to get some gold without having to buy a lot of it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-2-tenure-8-years\">2. Tenure: 8 Years<\/h3>\n\n\n\n<p>You can redeem each bond early, but only on interest payment dates, after the 5th year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-3-interest-income\">3. Interest Income<\/h3>\n\n\n\n<p>You get 2.50% interest on your investment annually, which is paid out twice a year.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-4-redemption\">4. Redemption<\/h3>\n\n\n\n<p>When the investment matures or you withdraw early, you get the cash value of gold in the market (no physical delivery).<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-5-tax-benefits\">5. Tax Benefits<\/h3>\n\n\n\n<p>You have to pay taxes on interest earned.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you hold it until it matures, you won&#8217;t have to pay capital gains tax.<\/li>\n\n\n\n<li>If you sell SGBs on stock exchanges after holding for more than 12 months, you will pay 12.5% long-term capital gains tax without any indexation benefit.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-6-no-worries-about-storage-amp-purity\">6. No worries about Storage &amp; Purity<\/h3>\n\n\n\n<p>There is no risk of theft, impurity, or storage fees because you do not hold real gold.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-7-how-it-is-held\">7. How it is held<\/h3>\n\n\n\n<p>You can either keep SGBs in Demat form or get a paper certificate. Do what works best for you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-8-can-be-traded\">8. Can be traded<\/h3>\n\n\n\n<p>You can buy or sell them in the secondary market before they mature because they are <a href=\"https:\/\/www.pocketful.in\/tools\/all-listed-companies\">listed on stock exchanges.<\/a> However, liquidity may be different.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-9-collateral-for-a-loan\">9. Collateral for a loan<\/h3>\n\n\n\n<p>Just like real gold, SGBs can be used as collateral for loans.<\/p>\n\n\n\n<p><strong>Read Also:<\/strong> <a href=\"https:\/\/www.pocketful.in\/blog\/what-is-straight-bond\/\">Straight Bond: Key Features, Benefits &amp; Risks<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-advantages-of-investing-in-sovereign-gold-bonds\"><span class=\"ez-toc-section\" id=\"Advantages_of_Investing_in_Sovereign_Gold_Bonds\"><\/span>Advantages of Investing in Sovereign Gold Bonds\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-1-generate-additional-income\">1. Generate Additional Income<\/h3>\n\n\n\n<p>SGBs pay 2.5% annual interest, which is credited to your bank account every six months, unlike physical gold or gold ETFs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-2-no-troubles-with-storage\">2. No Troubles with Storage<\/h3>\n\n\n\n<p>You don&#8217;t have to worry about purity challenges, locker fees, or safekeeping. Without actually holding the gold, you are making an investment in it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-3-backed-by-the-government-of-india\">3. Backed by the Government of India<\/h3>\n\n\n\n<p>SGBs are among the safest gold investment options available because they are issued by the RBI on behalf of the Indian government.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-4-capital-gains-without-tax\">4. Capital Gains Without Tax<\/h3>\n\n\n\n<p>Any capital gains you make from holding your SGBs until they mature (eight years) are entirely tax-free. Compared to other gold investment options, that is a significant advantage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-5-minimal-barrier-to-entry\">5. Minimal Barrier to Entry<\/h3>\n\n\n\n<p>SGBs are accessible to even small investors because you can begin investing with just one gram of gold.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-6-capable-of-serving-as-collateral-for-loans\">6. Capable of Serving as Collateral for Loans<\/h3>\n\n\n\n<p>SGBs can be pledged as security for bank and financial institution loans, just like real gold.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-7-tradable-on-stock-exchanges\">7. Tradable on Stock Exchanges<\/h3>\n\n\n\n<p>You have to exit before maturity? You can sell your SGBs in the secondary market (on stock exchanges).<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-8-simple-and-transparent-investment\">8. Simple and Transparent Investment<\/h3>\n\n\n\n<p>Unlike jewellery or coins, there are no manufacturing fees, waste expenses, or quality concerns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-9-options-for-digital-or-physical-holding\">9. Options for Digital or Physical Holding<\/h3>\n\n\n\n<p>Depending on what works best for you, you can hold them as paper certificates or in Demat form.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-10-perfect-for-diversifying-your-portfolio\">10. Perfect for Diversifying Your Portfolio<\/h3>\n\n\n\n<p>When there is inflation or economic uncertainty, gold usually performs well. SGBs provide an easy way to increase your portfolio&#8217;s exposure to gold.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-did-government-stop-issuing-new-sgbs\"><span class=\"ez-toc-section\" id=\"Why_did_Government_Stop_Issuing_New_SGBs\"><\/span>Why did Government Stop Issuing New SGBs\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>SGBs were initially seen as an option for attracting investors against &#8220;paper gold,&#8221; lowering imports, and providing a secure return.&nbsp;<\/p>\n\n\n\n<p>However, it became too costly to maintain due to the large government payouts caused by rising gold prices. Even though the RBI backed the bonds, they ultimately caused financial strain and missed targets, which led authorities to stop issuing new ones around the February 2024\u2013FY25 budget.<\/p>\n\n\n\n<p>The price of gold was about \u20b92,400 per gram in 2015, when the scheme started off. As gold prices rose to over \u20b98,000 per gram over time, the government was compelled to pay back investors at these exorbitant rates on top of the 2.5% interest that had been promised.<\/p>\n\n\n\n<p>As of September 2025, gold prices have risen to over \u20b910,500 per gram, representing a 4x increase since 2015. This dramatic price appreciation has resulted in substantial returns for SGB investors, with some early series showing returns exceeding 150%. Currently, as of the FY25 budget, no new SGBs are being issued.<\/p>\n\n\n\n<p>The present investors are not impacted; redemption occurs following the original terms, and interest payments (2.5%) continue until maturity.<\/p>\n\n\n\n<p><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/what-is-callable-bond\/\">What Is a Callable Bond?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-buy-sgbs-in-the-secondary-market\"><span class=\"ez-toc-section\" id=\"How_to_buy_SGBs_in_the_Secondary_Market\"><\/span>How to buy SGBs in the Secondary Market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can buy SGBs in the secondary market by following the steps mentioned below:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.pocketful.in\/open-demat-account\">Open a Demat Account<\/a>\u00a0<\/li>\n\n\n\n<li>Search for available SGBs. Each bond will have a name, SGBMAY28 (Sovereign Gold Bonds maturing May 2028), etc.\u00a0<\/li>\n\n\n\n<li>Check the details like price per gram, maturity date, interest payment dates, etc.\u00a0<\/li>\n\n\n\n<li>Place your buy order.\u00a0<\/li>\n\n\n\n<li>Earn Interest &amp; hold till maturity. Once matured, RBI will credit the redemption amount, depending on the then gold price, directly to your bank account<\/li>\n<\/ol>\n\n\n\n<p><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/what-are-war-bonds\/\">What are War Bonds?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-who-should-invest-in-sovereign-gold-bonds\"><span class=\"ez-toc-section\" id=\"Who_Should_Invest_in_Sovereign_Gold_Bonds\"><\/span>Who Should Invest in Sovereign Gold Bonds\u00a0\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-1-long-term-gold-investors\">1. Long-term Gold Investors<\/h3>\n\n\n\n<p>SGBs are a better option than physical gold if you have already made a long-term investment in gold, say for five to eight years or longer. You receive returns on the price of gold in addition to additional interest income (2.5% annually).<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-2-individuals-who-decide-not-to-keep-physical-gold-in-storage\">2. Individuals Who Decide Not to Keep Physical Gold in Storage<\/h3>\n\n\n\n<p>Concerned about locker fees, purity, or safety? SGBs eliminate the hassle of storage, charging, and theft concerns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-3-investors-who-want-to-save-tax\">3. Investors who want to save tax<\/h3>\n\n\n\n<p>You pay no capital gains tax if you hold SGBs until maturity, that is, eight years. When compared to selling gold ETFs or jewellery, that is an important win.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-4-risk-averse-investors-seeking-a-secure-choice\">4. Risk-Averse Investors Seeking a Secure Choice<\/h3>\n\n\n\n<p>Since the Government of India is issuing these bonds, there is no credit risk, making them the safest option available.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-5-investors-seeking-passive-income\">\u00a05. Investors Seeking Passive Income<\/h3>\n\n\n\n<p>Apart from the gold returns, the 2.5% annual interest that is paid every six months acts as a little bonus.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-6-individuals-seeking-to-expand-their-investment-portfolio\">6. Individuals Seeking to Expand Their Investment Portfolio<\/h3>\n\n\n\n<p>Including a small amount of gold in your portfolio helps you manage risk, particularly when there is inflation or market volatility. SGBs are an effective and safe method of doing that.<\/p>\n\n\n\n<p><strong>Read Also:<\/strong> <a href=\"https:\/\/www.pocketful.in\/blog\/what-is-insurance-bond\/\">What is Insurance Bond?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Sovereign Gold Bonds combine innovation and tradition to offer investors more than just another gold investment option. Along with the benefits of regular interest income, tax advantages, and no storage hassles, you also get the security and timeless value of gold.<\/p>\n\n\n\n<p>SGBs provide a more skilled and lucrative option if you intend to hold gold for an extended period of time. They are secure, supported by the government, and made to blend in perfectly with any contemporary investment plan. Therefore, the next time you consider purchasing gold, you might want to switch to digital, with a little gold that works better for you.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">S.NO.<\/th><th class=\"has-text-align-left\" data-align=\"left\">Check Out These Interesting Posts You Might Enjoy!<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">1<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/cat-bonds-an-easy-explainer\/\">CAT Bonds: An Easy Explainer<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">2<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/explainer-on-green-bonds-history-process-pros-cons-and-future-outlook\/\">Explainer on Green Bonds: History, Process, Pros, Cons, and Future Outlook<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">3<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/bowie-bond\/\">What Is Bowie Bond (Music Bonds) : History, Features, Advantages &amp; Disadvantages<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">4<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/difference-between-secured-and-unsecured-bonds\/\">Secured and Unsecured Bonds: Understand the Difference<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">5<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/detailed-guide-on-bond-investing-characteristics-types-and-factors-explained\/\">Detailed Guide on Bond Investing: Characteristics, Types, and Factors Explained<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">6<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/what-is-coupon-bond\/\">What is Coupon Bond?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">7<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/what-are-tax-free-bonds\/\">Tax-Free Bonds: Their Features, Benefits, and How to Invest<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">8<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/what-are-bond-yields\/\">What are Bond Yields?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">9<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/stocks-vs-bonds\/\">Stocks vs Bonds: Difference Between Bonds and Stocks<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">10<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/corporate-bonds\/\">What Are Corporate Bonds?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">11<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/what-are-social-bonds\/\">What are Social Bonds?<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">How long do SGBs last?<\/h3><p class=\"saswp-faq-answer-text\">8 years, with the option of quitting after the fifth year.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What kinds of returns are available from SGBs?<\/h3><p class=\"saswp-faq-answer-text\">Every six months, you receive 2.5% annual interest in addition to the appreciation of the price of gold.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Are SGBs subject to taxes?<\/h3><p class=\"saswp-faq-answer-text\">Interest is taxable, but capital gains are tax-free if held till maturity. If sold on stock exchanges after holding for more than 12 months, a 12.5% long-term capital gains tax applies without indexation benefit.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Is it possible to trade SGBs before they mature?<\/h3><p class=\"saswp-faq-answer-text\">Although their liquidity may vary, they are listed on stock exchanges.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Is it still possible to invest in SGBs?<\/h3><p class=\"saswp-faq-answer-text\">As of FY25, no new SGBs are being issued; however, you can still buy existing ones on the secondary market.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Indians have cherished gold for generations, not only for its use as jewellery but also as an effective means to store wealth. Today&#8217;s investors have a better, smarter alternative to the coins and ornaments our grandparents saved: Sovereign Gold Bonds (SGBs). SGBs, which are issued by the Reserve Bank of India, backed by the government, [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":21424,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"is_paper_insight":false,"paper_insight_image":0,"paper_insight_pdf":0,"paper_insight_ppt":0,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-21413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"acf":{"freelancer":"Harjyot"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sovereign Gold Bonds (SGBs): Features, Benefits &amp; How to Invest<\/title>\n<meta name=\"description\" content=\"Learn what Sovereign Gold Bonds (SGBs) are, their features, benefits, tax rules, and how to buy them in India for 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