Sovereign Gold Bonds: The Reserve Bank of India (RBI) has announced the premature redemption price for Sovereign Gold Bond 2020-21 Series-IV. This bond will be redeemed before maturity today (Monday, July 14, 2025). Investors making redemption will get around 100 percent return.
Sovereign Gold Bonds: There has been a surge in gold prices for the last few days. Anyway, many people consider investing in gold to be better. Meanwhile, Sovereign Gold Bond (SGB) gave such a return that investors were overjoyed. SGB has given a great return of 99.67 percent. The Reserve Bank of India (RBI) has announced the price of premature redemption of SGB 2020-21 Series-IV. It will become eligible for premature redemption today (July 14).
Let us tell you that the maturity of SGB is after 8 years, but after the completion of five years, investors can opt for premature redemption. According to the press release issued by RBI, the redemption price of SGB is based on the average closing price of 999 purity gold in the last three trading days (9, 10, 11 July). This information is given on a daily basis by the India Bullion and Jewelers Association (IBJA). Currently, this price has been fixed at Rs 9,688 per unit for SGB 2020-21 Series-IV.
Investors became rich
SGB 2020-21 Series-IV was issued in July 2020 at a rate of Rs 4,852 per gram. Now investors will get a return of Rs 9,688 on premature redemption. This means that in 5 years, investors have got a net return (excluding interest) of 99.67 percent. On investing in SGB, investors get an annual fixed interest of 2.50 percent.
It is transferred to the investors’ bank account every six months. At the time of maturity, the final interest amount and principal amount are paid together. Actually, SGB offers benefits like increase in gold prices, 2.50% interest , government protection, and tax exemption on maturity. It is a safe and beneficial option for investors.
Know what are Sovereign Gold Bonds (SGB)
SGB is a kind of government scheme. In this, investment is made in gold , but real gold is not received. It is in paper or digital form. Its value is determined according to the weight of gold. You pay cash to buy it and when you return it, you get cash. RBI issues these bonds on behalf of the Government of India. After completion of 5 years, investors can opt for premature redemption.
Know how to withdraw money
If you want to redeem your bond before time, then first you have to check on which date your bond was issued. After this, you have to submit a withdrawal request within the time limit given by your bank or RBI. If you miss the deadline, then you may face a delay in getting the money.