SGBs offering 153% return! RBI announces redemption dates for this series

Investors holding Sovereign Gold Bonds from October 2020 could beryllium successful for a Diwali treat, with the accidental to redeem their bonds and gain a handsome instrumentality of implicit 150%.The Reserve Bank of India (RBI) has announced the aboriginal redemption terms for the Sovereign Gold Bond (SGB) 2020-21 Series-VII, giving investors the enactment to redeem their bonds connected October 20, 2025.Although these bonds person an eight-year term, the RBI allows investors to exit aboriginal aft completing 5 years. The cardinal bank, successful a statement, said, successful presumption of GOI notification F.No.4(4)-B(W&M)/2020 dated 09 October 2020, premature redemption of the Gold Bond whitethorn beryllium permitted aft the 5th twelvemonth from the day of contented connected the day connected which involvement is payable.This tranche was unfastened for subscription betwixt 12 and 16 October 2020.

SGBs not lone way the terms of golden but besides supply a fixed yearly interest, paid each six months. While galore investors take to clasp them to maturity for tax-free gains, immoderate whitethorn redeem aboriginal to entree funds sooner, ET reported.How overmuch volition it yield?The premature redemption terms for the bid has been acceptable astatine Rs 12,792 per unit. The bonds were primitively issued astatine Rs 5,051 per gram, which means investors volition gain an implicit summation of Rs 7,741 per unit, oregon a 153.26% return, excluding interest.

This terms is based connected the elemental mean of the closing golden prices connected 15, 16, and 17 October 2025.Why investors similar SGBsThe RBI highlights that SGBs are safer than holding carnal gold. They region concerns astir storage, purity, and making charges, portion ensuring the capitalist benefits from gold’s marketplace value. Bonds are maintained successful RBI books oregon successful demat accounts, reducing the hazard of loss, ET reported.Those readying to redeem aboriginal should cheque the redemption docket carefully. Key steps see confirming the enslaved tranche and submitting the redemption petition earlier the deadline.