Understanding sovereign gold bonds

The Sovereign Gold Bonds scheme presents a golden opportunity for those looking to invest in gold without the physical possession's risks and costs. As a government security denominated in gold, it allows investors to earn regular interest and benefit from gold's price appreciation. Upon maturity, you receive the current market value of the gold, safeguarding your investment against price fluctuations. Moreover, the SGB scheme eliminates the concerns of purity and making charges associated with physical gold. Offered by the Government of India and tradable on exchanges, SGBs represent a safe, cost-effective, and convenient method of gold investment, making it an attractive alternative for securing your financial future with the sheen of gold.Read more

Things you need to know

SGBs allow investments starting from one gram, with a maximum limit of 4 kg for individuals and HUFs, and 20 kg for trusts per fiscal year​​

SGBs offer a fixed interest rate paid every six months, enhancing the investment's value alongside potential gold price increases

SGB pricing is linked to the current market rate of gold, ensuring investors receive transparent and fair pricing

Why invest in SGB

Hassle-free

Ownership of gold without any physical possession (No risks and no cost of storage)

Tradable

Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI

Use as collateral

Avail loans from banks against the security of these bonds

Sovereign guarantee

Invest with confidence in gold bonds, ensuring trust and credibility

Redeem current value

Benefit from the gold price at maturity, guaranteeing the market-linked worth of your investment

Consistent interest income

Enjoy stable semi-annual interest payouts, adding a steady income stream to your gold's intrinsic growth

Optimized taxing

Take advantage of unique tax exemptions, including no capital gains tax if the bond is held until maturity

Digital ease

Experience hassle-free subscriptions and bond management via the KBL Mobile Plus App or branch visit

Special incentives

Receive a special discount when subscribing to SGBs online, enhancing your investment value

Eligibility criteria

The minimum investment that can be made in this bond is 1 gram. Each individual or HUF can hold a maximum of 4 kgs every year in such bonds. For trusts, charitable institutions, the maximum limit is 20 kgs

How to get started

Apply through KBL Mobile Plus App

Step 1

App Login

Launch the KBL Mobile Plus App and log in using your MPIN

Step 2

Apply for Sovereign Gold Bond

Go to "Investment and Insurance," select "Sovereign Gold Bond," and proceed after agreeing to the Terms and Conditions.

Step 3

Your requirements

Enter the number of units required in “Quantity in Grams”

Step 4

Enter your details and submit

Enter the nominee details, confirm the details in the next page Enter OTP and submit

Important guidelines

Redemption and premature options

Instructions and rights to investors

Operational guidelines

Got questions? We’ve got answers.

How do I open an account with your bank?

Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.

Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.

Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.

Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.

Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.

Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.

Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold, offering a safe and alternative way to invest in gold without the hassles of physical storage. They not only track the price of gold but also pay a fixed interest, combining the stability of gold investment with regular income. SGBs are considered highly secure as they are backed by the government. They are also tax-efficient, with no capital gains tax if held until maturity. Additionally, SGBs can be used as collateral for loans, making them a versatile investment option. Invest in the future with the sovereign gold bond scheme, a secure way to own gold without the physical storage concerns. Our sovereign gold bond offers are a perfect choice for those looking into gold bond investment as they carry the dual benefits of safety and potential capital gain. The SGB gold bond is not only a solid investment but also a hedge against inflation.

SGBs offer a fixed interest rate, typically announced by the government at the time of issuance. This interest is paid semi-annually on the initial amount of investment and is separate from the potential capital gains linked to gold price movements. It's important to understand that while the interest income provides a regular return, the principal value of the bond will fluctuate with market gold prices. At maturity, the redemption price is based on the then-prevailing price of gold, providing the opportunity for capital appreciation.

Do consider SGBs as a long-term investment option to benefit from both interest income and potential capital appreciation in gold prices. Keep track of the issuance calendar and buy during the subscription period to get the bonds at the issue price. Store your bond certificates securely and ensure your KYC details are up to date. Don't ignore market trends in gold prices, as they can impact your investment. Avoid premature redemption, as it may lead to potential losses and miss out on long-term benefits. Be aware of the tax implications on interest income and capital gains if sold before maturity.