Sovereign Gold Bond Scheme 2025-26 was a popular way for you to invest in gold without holding it physically. Check the Sovereign Gold Bond Scheme 2024-25 next issue date, benefits, eligibility, interest rates, and how to buy SGBs online. Invest smartly in gold with RBI-backed bonds.
Sovereign Gold Bonds (SGBs) are government-backed securities issued by the Reserve Bank of India (RBI). The Bond is issued by Reserve Bank on behalf of Government of India.
What is a Sovereign Gold Bond?
The Government of India introduced the Sovereign Gold Bond (SGB) in November 2015 under the Gold Monetisation Scheme. Investors can buy SGBs by paying the issue price in cash and redeem upon their maturity. The bonds will keep earning the fixed interest rate of 2.50% per year until redemption. They are low-risk investments that provide returns.Â
Key Features of Sovereign Gold Bonds
| Issuer | Reserve Bank of India (on behalf of Government of India) |
| Form of Investment | Denominated in grams of gold (minimum 1 gram) |
| Tenure | 8 years (with an option to redeem after 5 years) |
| Interest Rate | Fixed at 2.5% per annum (paid semi-annually) |
| Redemption Value | Based on prevailing gold price at maturity |
| Mode of Holding | Physical certificate or Demat format |
| Tax Benefits | No capital gains tax on redemption after maturity |
| Minimum Investment | 1 gram of gold |
| Maximum Limit | 4 kg (individuals), 20 kg (trusts & HUFs) per year |
Sovereign Gold Bond Upcoming Issues 2025–26
This scheme has been stopped, there are currently no planned issue dates for Sovereign Gold Bonds in 2025-26. But Sovereign Gold Bond 2026 dates are yet to be officially announced by the RBI.
Based on the RBI’s previous trends, investors can expect multiple SGB issues under the SGB 2025–26 series, likely starting between April and June 2025.
The bonds will be available through:
- Scheduled commercial banks
- Stock exchanges (NSE and BSE)
- Designated post offices
- Recognised stockbrokers and online investment platforms
Eligibility of a Sovereign Gold Bond
The following are eligible to subscribe for SGB:
- Indian resident individuals
- Individuals on behalf of a minor
- Trusts
- HUFs
- Universities, and
- Charitable institutionsÂ
How to Invest in New SGB Issues?Â
Follow these steps when a new tranche is announced:
- Visit your post office, SHCIL, or recognised stock exchange portal.
- Choose Sovereign Gold Bond under investment options.
- Enter subscription quantity + nominee details.
- Make payment via net banking/UPI/debit card.
- Receive SGB certificate or Demat credit.
SGBs can also be bought online through the commercial banks’ websites authorised to sell them
- Login to the bank’s internet banking account.
- Click on the ‘e-service’ option and choose the ‘Sovereign Gold Bond’ option.
- Read the terms and conditions and click the ‘Proceed’ option.
- Fill out the registration form and click the ‘Submit’ button.
- In the purchase form, enter the nominee details and subscription quantity.
- After verifying all the details, click the ‘Submit’ option and make the payment.
- You will receive a confirmation message along with the bond certificate in your email or Demat account.
Gold ETF vs SGB
| Feature | SGB | Gold ETF |
| Backed By | Government of India | Market‑traded fund backed by gold |
| Interest | 2.5% annually | No interest |
| Maturity | 8 years | No fixed maturity |
| Tax on Gains | Tax‑free at maturity | LTCG after 3 years with indexation |
| Liquidity | Medium (exchange + early redemption) | High (exchange traded) |
| Storage | Digital | Demat |
| Best For | Long-term investors | Traders/short‑term investors |
How do SGB Returns Work?
SGB returns come from two components:
- Fixed 2.5% annual interest on issue price.
- Gold price appreciation.
Example:
Issue price = Rs. 6,263 per gram
Gold price after 8 years = Rs. 12,500 per gram
Interest earned = 2.5% × Rs. 6,263 × 8 years = Rs. 1,252
Capital gains = Rs. 12,500 – Rs. 6,263 = Rs. 6,237 (tax‑free)
Total return per gram ≈ Rs. 7,489
Investors can initiate early redemption of their SGBs after 5 years from the date of SGB issuance. Your bonds will continue to earn interest at the fixed rate of 2.50% per year until the redemption date.
Sovereign Gold Bond Tax Exemption
There are no tax deduction benefits for the lump sum deposit of SGBs. The interest given on SGB deposits is also not tax-free. The income tax will be as per the individual’s income tax slab.