Sovereign Gold Bond SBI | How to Buy SGB Online? | SGB SBI Dates 2022

Investment in Gold Bonds through State Bank of India

The Reserve Bank of India (RBI) issues sovereign gold bonds(SGBs) on behalf of the Central Government.
This scheme was initiated by the Govt of India in Nov 2015, under Gold Monetisation Scheme.
To assist customers to apply for SBG online, the State Bank of India(SBI) provides this service via its internet banking.
For those who like to subscribe to Sovereign Gold Bond SBI online & pay via a digital system, the central’s government is offering a discount.

What are the Features and Benefits of the SBI Sovereign Gold Bond Scheme?

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  • Gold Linked Returns Guaranteed by Government of India.
  • The minimum permissible investment will be 1 unit i.e. 1 gram of gold & the maximum amount subscribed will not be more than 4K units for individuals and HUFs, and 20 kg for Trusts and similar entities, per entity per fiscal year.
  • The issue price of the Gold Bonds will be INR 50/- per gram less for those who subscribe online and pay via digital mode.
  • The redemption price will be in INR i.e. Indian Rupees based on the previous week’s (from Monday to Friday) simple average of the closing price of gold of 999 purity published by IBJA i.e. India Bullion and Jewellers Association Ltd.
  • The subscriber will be compensated at a fixed rate of 2.5per cent per annum payable semi-annually on the initial value of the investment.
  • The interest on SGBs shall be taxable as per the provision of the IT Act, 1961 and the capital gains tax shall also remain the same as in the case of physical gold.
  • The SGBs will be tradable on exchanges from a date to be notified by the Reserve Bank of India.
  • A loan facility is available.

Also Read Loan against Sovereign Gold Bond from ICICI Bank | Interest Rate | Eligibility

  • Free from problems like making charges and cost of storage.
  • A nomination facility is available.
  • The SGBs will be restricted from sale to Resident Indian entities including Individuals, HUFs, Trusts, Universities, and Charitable Institutions.
  • The SGBs will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
  • The tenor of the SGB will be for a period of 8 years with an exit option from the 5th year to be exercised on the interest payment dates.

Also Read Sovereign Gold Bond : Best Returns on Gold Investment

When Can I Buy SGB Next?

S. No.TrancheDate of SubscriptionDate of Issuance
1.2022-23- Series IJune 20 – June 24, 2022June 28, 2022
2.2022-23 Series IIAugust 22 – August 26, 2022August 30, 2022

Also Read Sovereign Gold Bond through HDFC Bank & HDFC Securities – Demo | Certificate | Status

How to Buy Sovereign Gold Bond through SBI Online?

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Time needed: 5 minutes.

Follow the steps given below for buying gold bonds through the State Bank of India

  1. SBI Online

    To apply for bonds online, account holders need to log into the SBI’s Personal Internet Banking portal.
    Sovereign Gold Bond through SBI Online?

  2. Sovereign Gold Bond Request

    After successful login in, account holders need to e-Services tab. Thereafter, they need to click on the “Sovereign Gold Bond Request” to apply for the gold bonds.

    SGB through SBI

  3. Select the Account Number

    Once landed on the “Sovereign Gold Bond Scheme” page, you will see your list of accounts is listed there.
    Check the “I accept the Terms and Conditions” checkbox and click on the “Proceed” button to fill out the registration form.

    SBI Account Details

  4. New Investor

    For the new investor only, need to fill the one-time registration form with mandatory inputs and then click on the “Submit” button.
    Note – If you do not have any Demat account, avoid the DPD i.e. Depository Participant Details. However, It is not mandatory. One benefit of providing a Demat a/c during registration details is, you can sell your purchased SGBs in the secondary market anytime before maturity.
    SBI Application form

  5. Purchase Form

    On the purchase form, you have to fill in the subscription quantity and nominee details.
    SBI SGB Application form

  6. Payment & Allotment

    If everything goes fine, the price of the bond will be blocked from your account. Now, you will see details on the next screen.
    Keep a note of the details to avoid any inconvenience in the future. However, you need to wait for the issue date to see the allotment in your account.

Also Read Sovereign Gold Bond through Axis Bank or Axis Direct – Demo

Application Form

Also Read How to Buy Sovereign gold Bond from ICICI Bank or ICICI Direct?

Return Calculation

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SGBs are contemplated as one of the best investment choices for those planning to invest in gold for the long-term saving prospects, as they are the only instrument that provides an interest of 2.5% on the invested funds.
Hence, apart from the capital appreciation, one extra advantage from regular interest income is credited to a subscriber’s account on a half-yearly basis.
Let’s check the following link for “How to Calculate the SGB Returns?”

Read Sovereign Gold Bond Calculator: Return Calculation 2022

How to Sell Sovereign Gold Bond SBI?

The tenor of the scheme is 8 years. Although, one can also redeem the SBI-SGB after the 5th year from the date of issue on coupon payment dates.

  1. The investor will be informed one month before SGB maturity.
    On maturity, the gold bonds will be redeemed in INR (Indian rupees) based on the selling price published by the IBJAL(Indian Bullion and Jewelers Association Limited). The interest and redemption proceeds will be credited to your registered bank a/c.
  2. Investors need to approach the SBI, 30 days before the coupon payment date. The request for premature redemption will only be accepted if the subscriber approaches the SBI at least one day before the coupon payment date.

Read Loan against Sovereign Gold Bond | SBI | ICICI | HDFC | Interest Rate | Eligibility

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