There is good news for those investing in gold. Reserve Bank of India (RBI) has announced the price of premature redemption for the Sovereign Gold Bond (SGB) 2017-18 Series-XIV and SGB 2018-19 Series-IV. Both these schemes are ready for redemption on 1 July 2025 today. If you had invested money in these schemes, then you are going to get a bumper return. The special thing is that those investing in 2017-18 Series-XIV are getting a return of about 240%, while the 2018-19 Series-IV is benefiting more than 208%.
What is Sovereign Gold Bond?
Sovereign Gold Bond is a special scheme of the Government of India, in which you can invest in gold without purchasing physical gold. These bonds are released for a period of 8 years, but after 5 years you can redeem them ahead of time. That is, if you need money in the middle, then you can sell it. Apart from this, in this scheme you also get an interest of 2.5% every year, which is deposited in your bank account every six months.
How is the redemption price fixed?
The RBI told in a press release on 30 June 2025 how the redemption price of SGB is fixed. For this, the average closed price of gold of 999 purity is based on the last three business days (26 June, 27 June and 30 June 2025). This price is published by India Bullion and Jewelers Association Limited (IBJA). This time the redemption price has been fixed based on the average price of three days, which is Rs 9,628 per unit. That is, if you have a gram bond, then you will get Rs 9,628.
SGB 2017-18 Series-240% Bang Return in XIV
2017-18 Series-XIV was released in January 2018. At that time the price of one gram of gold was Rs 2,831. Now on 1 July 2025, its redemption price is Rs 9,628. That is, if you had invested Rs 2,831 at that time, now you will get Rs 9,628 on every village. This means that your investment has increased by 240%. This return is without 2.5% annual interest. If interest is also added, then your earnings will be even more.
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Suppose, you invested in January 2018 in 10 grams SGB 2017-18 Series-XIV. Then you applied 10 x 2,831 = 28,310 rupees. Now on redemption you will get 10 x 9,628 = 96,280 rupees. That is, your profit was 96,280 – 28,310 = 67,970 rupees. Apart from this, you must have also received 2.5% interest every year for 8 years, which must have been deposited in your bank account every six months.
SGB 2018-19 Series-More than 208% returns in IV
Now let's talk about SGB 2018-19 Series-IV, which was released in January 2019. At that time the price of one gram was Rs 3,119. Now its redemption price is also the same Rs 9,628 per unit. This means that if you choose a premature redemption, you will get more than 208% returns.
If you had invested Rs 3,119 per gram in January 2019, now you will get Rs 9,628. That is, your profit on every gram is 9,628 – 3,119 = 6,509 rupees. If you look at the percentage, then the returns were taken {(9,628 / 3,119) x 100} = 208.69%. This return is also without 2.5% interest. If the interest is added, then your total earnings will be even more spectacular.
Benefits of interest separately
The most important thing about SGB is that you not only get the benefit of increasing the price of gold, but also get an interest of 2.5% every year. This interest is available on your initial investment and every six months deposits in your bank account. You will get the last interest with the principal amount at the time of redemption.
Suppose, you had invested Rs 31,190 (10 x 3,119) for 10 grams in SGB 2018-19 Series-IV. According to 2.5% annual interest, you will get 31,190 x 2.5% = 779.75 rupees every year. In 6 years (2019 to 2025) You will have received a total of 779.75 x 6 = 4,678.50 rupees. If you are redemptioned ahead of time, then this interest will increase your returns further.
What to do for premature redemption?
If you want to redeem these SGBS ahead of time, then some important steps have to be taken. RBI has given some suggestions for investors:
1. Check the transplant of your scheme
First of all, you have to find out which transplant your bonds are from. For this, check the issue date of your bond. This will be the date when you can redemption before time.
2. Take care of the deadline
RBI has fixed the date of redemption for every tank. You have to submit your redemption request before this date. If you miss the deadline, then you may have to wait for the next opportunity.
3. Update bank details
Redemption money will be deposited in your bank account. Therefore, if your bank account number, email ID or any other information have changed, immediately inform your bank, stock holding Corporation of India Limited (SHCIL) or Post Office.
Source: www.tv9hindi.com
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