SBI customers can buy SGBs for Rs 4,727/gm sitting at home

The first tranche of sovereign gold bonds (SGB) has been on offer from May 17 and State Bank of India customers can use the online facility to invest.

Those who wish to apply online also can get a concession of Rs 50 off per gram gold. Besides, no GST or making charge is needed like physical gold and these bonds are tradable in all exchanges.

The first tranche will be on offer from May 17 to May 21.

How can you invest?

SBI customers can invest in SGB online through SBI portal under e-services tab or call 1800 112 211 or visit bank.sbi for more details.

Once a customer wishes to invest in SGB , he/she has to choose the volume of gold he/she wishes to invest in and proceed for payment.

The amount will be deducted from the account and the customer/investor will receive the online certificate instantly.

Any SBI customer above 10 years of age can buy these bonds subject to the availability of some basic documents.

Price band

The nominal value of the bond based on the simple average closing price works out to Rs 4,777 per gram of gold.

To those buying online, a price of Rs 4,727 per gram of gold will be applicable.

Tenure and Return

Any individual can hold maximum of 4 kg gold through SGBs. But any trust or charitable organization can hold up to 20 kg of gold.

The tenure of the bonds is for a period of 8 years with an exit option after the fifth year to be exercised on the next interest payment dates.

The interest on SGBs shall commence from the date of issue and shall be paid at a fixed rate of 2.50% per annum on the nominal value of the bond. The interest shall be payable half-yearly and the last instalment of the interest shall be payable along with the principal on maturity.

SGBs will again be offered on May 24—28, May 31—June 4, July 12—16, August 9—13 and August 30—September 3.