Maturity, Redemption, and Interest of Sovereign Gold Bonds
1. Maturity: Sovereign Gold Bonds have a tenure of 8 years. At the end of this period, the bonds mature, and the investor receives the maturity amount equivalent to the prevailing market price of gold at the time of redemption.
2. Redemption: While the tenure of SGBs is 8 years, investors have the option to exit after the fifth year on interest payment dates. The redemption price is based on the prevailing market price of gold. Investors can choose to redeem the bonds either prematurely or at maturity.
3. Interest: Sovereign Gold Bonds offer an annual fixed rate of interest, currently set at 2.50% per annum, payable semi-annually. The interest is calculated on the nominal value of the investment. It is credited to the investor’s bank account directly, typically on a half-yearly basis.