Sovereign Gold Bond: Sovereign Gold Bond has increased the amount by more than two and a half times, premature redemption date has arrived for two series:

Overcoming Gold Bond : Sovereign Gold Bond ( SGB ) schemes from 2017-18 Series VII and 2018-19 Series III have given investors great returns. The Reserve Bank of India ( RBI ) has fixed the premature redemption price at Rs 7,637 per unit. This redemption option has become available from November 13, 2024. For those who invested in 2017-18 Series VII at an issue price of Rs 2,934 per gram, the redemption price of Rs 7,637 per unit represents a return of about 160%. That is, more than two and a half times the money. Similarly, the price of the 2018-19 Series III was Rs 3,183 per gram. Those who invested in it got a profit of about 140%.

You get 2.50% interest twice a year.

This return has been calculated without including the annual interest of 2.50%, which is paid twice every year during the entire tenure of the bond. That is, if you add this, the return will be even higher.

How the returns were calculated

The redemption price for SGB is based on the simple average of the closing price of 999 purity gold on the three business days preceding the redemption date. For these phases, the average of the price is taken from the closing rate of gold on India Bullion and Jewelers Association Limited (IBJA) on November 8, November 11, and November 12, 2024.

This approach ensures that the redemption price accurately reflects recent market conditions.

When is premature redemption approved?

Premature redemption in the SGB scheme is allowed only after the fifth year of investment. Those who hold SGB even after the premature redemption period get capital gains on the bond, which is tax-free on maturity. They also get annual interest payments.