205% return on Sovereign Gold Bonds: RBI announces redemption price of this SGB
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What is the redemption price of SGB 2018-19 Series-V?
Returns on premature redemption of SGBs
Interest payment on SGB
What are Sovereign Gold Bonds (SGBs)?
Important FAQs on SGBs
Can I encash the gold bond at any time? Is premature redemption allowed?
What do I have to do if I want to exit my SGB investment?
The Reserve Bank of India (RBI) has announced the premature redemption price for Sovereign Gold Bonds (SGB) 2018-19 Series-V. The SGB is due for premature redemption on Tuesday, July 22, 2025. Gold bonds mature 8 years from the date of issuance, and premature redemption of SGBs is permitted only after the completion of the fifth year from the date of issue.ET Wealth Online tells you the premature redemption price, the returns you will earn if you opt for premature redemption and other important details.According to an RBI press release dated July 21, 2025, "The redemption price of SGB shall be based on the simple average of the closing gold price of 999 purity of the previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA)."The redemption price of Sovereign Gold Bonds due for premature redemption due on July 22, 2025, will be Rs 9,820 per unit of SGB based on the simple average of the closing gold price for the three business days i.e. July 17, 2025, July 18, 2025 and July 21, 2025.The SGB 2018-19 Series-V, was issued at Rs 3214 per gram in January 2019. So, the absolute return comes to Rs 9,820 - Rs 3214 = Rs 6,606 (without factoring in the interest). In percentage terms, it comes to 205.56%Gold bonds offer an interest rate of 2.50% (fixed rate) per annum on the initial investment amount. Interest will be credited semi-annually to the investor's bank account, and the last interest payment will be made on maturity, along with the principal.SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors must pay the issue price in cash, and the bonds will be redeemed in cash upon maturity. The Reserve Bank of India issues the bond on behalf of the Government of India.The Reserve Bank of India (RBI) had announced the premature redemption price for Sovereign Gold Bonds (SGB) Series-IV which was due on July 14, 2025.Although the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after the fifth year from the date of issue on coupon payment dates. The bond will be tradable on exchanges if held in demat form. It can also be transferred to any other eligible investor.In case of premature redemption, investors can approach the concerned bank/SHCIL offices/Post Office/agent thirty days before the coupon payment date. Requests for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day before the coupon payment date. The proceeds will be credited to the customer's bank account provided at the time of applying for the bond.
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