The Reserve Bank of India has rolled out the Sovereign Gold Bond (SGB) Scheme Series III for 2023-24. Available until December 22, this scheme offers a golden opportunity to invest in gold without the hassle of physical storage.
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The price tag? A competitive ₹6,199 per gram. But it’s not just about the price. These bonds are a secure investment avenue, backed by the government, and offer a fixed interest rate of 2.50% per annum on the initial investment, paid semi-annually.
Here’s the kicker: SGBs are not just for the affluent. Whether you’re an individual, part of a Hindu Undivided Family, or running a trust or university, you’re eligible to invest. For those who like to plan long-term, these bonds come with an 8-year maturity period, with options to exit in the fifth, sixth, and seventh years.
The minimum investment is 1 gram, with individual investors having a maximum subscription limit of 4 kg per fiscal year.
This scheme is a boon for long-term investors, offering protection against inflation and market fluctuations. With the ease of online purchase and the security of a government-backed scheme, SGBs are an excellent choice for those looking to diversify their investment portfolio.
How to buy SGBs online?
For investors interested in purchasing SGBs online, here’s a simplified guide:
- Step 1: Log in to your net banking account.
- Step 2: For first-timers, select ‘Register’, and agree to the terms and conditions set by the Reserve Bank of India.
- Step 3: Enter the necessary details for the SGB scheme and information about your depository participant from NSDL or CDSL.
- Step 4: Submit the registration form.
- Step 5: Once registered, choose the purchasing option from the header tab or directly select ‘Purchase’ for existing users.
- Step 6: Input subscription quantity and nominee details.
- Step 7: Enter the one-time password (OTP) sent to your mobile phone to complete the process.
