These days, investing in gold has become far easier and more convenient. Sovereign Gold Bonds (SGBs) are the ideal alternative to physical gold investing. With these bonds, You can benefit from capital appreciation and annual interest income. These bonds, issued by the Indian government, also reduce a number of hazards associated with physical gold.

The Reserve Bank of India (RBI) releases a notice and issue and redemption dates for the Sovereign Gold Bond (SGB) issuance for each fiscal year. Notably, eight years is the total duration of an SGB. Also, gold bonds may be redeemed early after five years from the date of issuance, even though the tenor for SGBs is eight years.

According to this, the Sovereign Gold Bond Scheme 2016 -17 – Series I, which was issued on August 5, 2016, would be up for redemption in August.

Sovereign Gold Bond 2016-17 – Series I: All You Need To Know

Sovereign Gold Bond Scheme 2016-17 – Series I bond applications were accepted between July 18, 2016, and July 22, 2016. The bond was issued on August 5, 2016.

The issue price of the Sovereign Gold Bond 2016-17 – Series was Rs 3,119, and the bonds were issued on August 5, 2016, hence the tentative final redemption date is the first week of August 2024.

These SGBs have an annual interest rate of 2.75 per cent (fixed rate) on the initial investment and are paid in semi-annual installments, with the last installment payable alongside the principle at maturity.

Sovereign Gold Bond In SBI: How To Register

Step 1: Log in to SBI Net Banking using your credentials.

Step 2: Select ‘e-Service’ from the main menu.

Step 3: Select the ‘Sovereign Gold Bond Scheme’ tab.

Step 4: If you are making your first investment, you must register. From the header tab, click ‘Register,’ then ‘Terms and Conditions’, and finally ‘Proceed.’

Step 5: Fill in any blank fields with your information. Include the nomination and any other relevant information.

Step 6: Select the Depository participant from NSDL or CDSL where your demat account is stored.

Step 7: Key in DP ID, and Client ID, and click the ‘Submit’ tab.

Step 8: Confirm the information and click the ‘Submit’ option.

Sovereign Gold Bond: How Final Redemption Price Calculated?

Based on the simple average of the closing price of gold with a purity of 999, as reported by India Bullion and Jewellers Association Ltd. (IBJA) for the previous week (Monday through Friday), the redemption price will be in Indian Rupees.

The Bond price will be determined in Indian rupees using the simple average of the closing price of gold of 999 purity announced by the India Bullion and Jewellers Association Limited for the week preceding the subscription period (Monday through Friday). The issuing price of gold bonds will be Rs 50 per gramme less than their nominal value.

Sovereign Gold Bond: Interest rate

Investors will be reimbursed at a fixed rate of 2.75 per cent per year, payable semi-annually based on the initial investment amount. The current interest rate for SGB is 2.5 per cent.

Caption: Sovereign Gold Bonds (SGBs) are an excellent alternative to physical gold investments.