New Delhi: Sovereign Gold Bond – Reserve Bank of India (RBI) has started offering Gold Bonds as part of Sovereign Gold Bond Scheme 2011-22. Investors now have the opportunity to invest their money in sovereign gold bonds instead of traditional physical gold. Sovereign Gold Bond 2021 scheme provides an option for investors to be benefited from the hike, if there is any, in gold prices following eight-year bond tenure.Also Read - Online, Digital Buyers To Get Rs 50 Discount Per Gram In Sovereign Gold Bond Scheme

Sovereign Gold Bond Dates

As part of the Sovereign Gold Bond Scheme 2011-22, RBI has started offering subscription. There will be a total of six installments or sovereign gold bond series. Subscription for the first
sovereign gold bond series has completed between May to May 21. Also Read - Sovereign Gold Bond Scheme: Subscription Date, Price, Interest Rate, Discount, Key Details

The sovereign gold bond scheme series II subscription is opening between May 24 to May 28. The subscription Third installment of the sovereign gold bond scheme series will open between May
31 to June 4. Also Read - Sovereign Gold Bond: RBI Has Big Update For Investors; Details Here

Sovereign gold bond scheme series IV subscription will open from July 12 to July 16. The subscription for fifth Sovereign gold bond scheme series will open between August 9 to August 13.

The final Sovereign Gold Bond series subscription will open between August 30 and September 3.

Sovereign Gold Bond Price, Interest

The nominal value of gold bond has been kept at around Rs 4,777. If an investor apply through online and pay via digital mode, then a discount of Rs 50 per gram is being provided.

There is a fixed interest rate against gold bonds at 2.50 per cent per annum. This interest is applicable on the amount of the initial investment and will be credited semi-annually.

Where to buy Gold Bonds?

Investors can buy Sovereign Gold Bonds from authorized post office branches, nationalised banks, private banks, and foreign banks. You can also purchase gold bonds at Stock Holding
Corporation of India Ltd. and the authorized stock exchanges.

Sovereign Gold Bond Maturity Returns

After eight-year tenure of gold bonds, investors will get returns based on prices of gold at that point of time along with the 2.5 per cent interest. This means that if gold price soars
after eight years, the returns will be higher along with an assured 2.5 per cent of interest rate. If the gold price falls, the returns will be on a lower side.

However, investors must take note that they will not lose out in terms of the units of gold which the he or she has invested.

Gold Bonds vs Physical Gold- Where to Invest?

Gold bonds provide farm more secured option and benefits to an investor in comparison with physical gold. Gold bonds protect the quantity of the precious metal for which the investment was
made.

Apart from this, there is storage cost and risk associated with physical gold. Physical gold also has factors that jewellery making cost and purity issue.

Under the sovereign gold bond scheme, investors get are assured of the periodical interest.

Since Gold bonds are kept in RBI books and demat form, these remain safe.

Gold bonds can be helpful in getting loans from banks, other financial institutions and non-banking financial companies (NBFC).

Income Tax on Gold Bonds

As per the Income Tax Act, 1961, periodical interest will be taxable. However, TDS is not applicable on gold bonds.