The bond has an 8-year term with a 5-year exit option that can be activated on the interest payment date.
Individuals and HUF have a maximum subscription limit of 4 kg, whereas trusts, universities, and charitable institutions have a maximum subscription limit of 20 kg.
How do I purchase an HDFC Sovereign Gold Bond?
Customers of HDFC Bank can invest in government-issued sovereign gold bonds through NetBanking and their DEMAT account and receive a discount of Rs. 50 per gram.
Customers of HDFC Bank can invest in government-issued Sovereign Gold Bonds, which will be available for purchase from March 1, 2021, until March 5, 2021. At a fixed interest rate of 2.5 percent, the issue price has been set at Rs 4,662 per gram. With the issue price of Rs 4612 per gram, applicants can save Rs 50 per gram on digital applications. This is in keeping with the Government of India’s decision, made in cooperation with the Reserve Bank of India, to provide a discount of Rs 50 per gram to investors who apply for sovereign gold bonds online and make payments digitally.
Sovereign Gold Bonds are government securities denominated in grams of gold that are issued by the Reserve Bank of India (RBI) on behalf of the government. As a result, this paper form of gold can be used as a substitute for genuine gold.
The ‘paper gold’ or gold bonds are sold in multiples of one gram of gold, hence the minimum investment is one gram of the precious metal. In other words, the smallest amount of gold that can be invested is one gram.
When purchasing bonds, investors must pay the issue price in cash, which is redeemed in cash at maturity. Gold bonds can be exchanged on the stock exchange, and the profits are tax-free. They can also be used as loan collateral. The interest on the Bonds will be taxable under the Income Tax Act of 1961. (43 of 1961). On maturity, capital gains tax on SGB redemptions to individuals has been eliminated.
The current series of sovereign gold bonds, which were first issued in 2015, is the 12th tranche for fiscal year 2020-21. Subject to investment limits, the subscription is open to residents, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions.
The gold bonds are available for purchase at specified post offices, the Bombay Stock Exchange, the National Stock Exchange, and the Stock Holding Corporation, as well as designated banks such as HDFC Bank.
Individuals and HUFs are allowed to purchase up to 4 kg every financial year, but trusts and similar corporations are limited to 20 kg. If a joint holding application is submitted, the investment limit of 4 kg will be applied to the first applicant.
The bond has an eight-year term with an option to depart after the fifth year, which a bond holder can exercise on the following interest payment date.
Please note that through Netbanking, only people can apply for Sovereign Gold Bonds.
A sovereign gold bond is a secure investment because it is issued by the Indian government and hence backed by the government of India. It is also a straightforward investment because it may be completed online, resulting in a lesser rate. Aside from that, there are a number of reasons why gold bonds are a better option than real gold.
Second, its prices are connected to the India Bullion and Jewellers Association’s pricing of 999 quality (24k) gold (IBJA). When gold prices rise, investors can readily sell their gold bonds on the secondary market since they are liquid.
Third, the investor receives a fixed interest rate (2.5 percent for the current series), comparable to that of a bank’s fixed deposit. Gold Bonds earn a set interest rate that is unaffected by capital appreciation.
Fourth, the gold bond’s keeping cost is small when compared to the security cost of possessing actual gold in the form of jewelry, bars, coins, or ingots.
Fifth, at maturity, private investors are exempt from paying capital gains tax or TDS.
The price of gold is on the decline. For example, when the current series was announced on January 29, 2021, the RBI set the issue price at Rs 4912 per gram, in line with gold pricing at the time. However, prices fell roughly 6.3 percent over the next 30 days, resulting in a readjustment at Rs 4662 per gram.
Buying now implies you’ll acquire a gold equivalent at a lower price, and you’ll be able to wait for prices to climb again. “Gold’s long-term prospects remain intact,” says G Chokkalingam, founder and chief investment officer of Equinomics Research.
Customers with an HDFC Bank NetBanking or Demat account can invest in government-issued sovereign gold bonds and receive a Rs50/- discount per gram.
To begin, go into your NetBanking account and select the ‘Offers’ option. You can also go to an HDFC Bank branch near you.
*There are certain restrictions. The information in this article is generic in nature and is offered solely for educational purposes. It is not a substitute for personalized advice tailored to your individual situation.
In HDFC Bank, where can I find SGB?
There is no way to check the status of your application on the HDFC website. You can visit your HDFC home branch and request that your application be canceled. You can see the holding in your bank account once you receive the allotment.
Which bank is the best for gold sovereign bonds?
Sovereign Gold Bonds (SGBs) are a great way to invest in gold without having to buy it. You can benefit from capital appreciation as well as annual interest with these bonds. These bonds, which were issued by the Indian government, also reduce a number of the hazards connected with actual gold. These bonds can be purchased via ICICI Bank’s internet banking or the iMobile application.
Does SGB require a demat account?
Yes, a demat account is not required to purchase a sovereign gold bond. If you have a demat account, you should acquire your SGB holdings in demat format so you can trade them on the exchange.
What is a Sovereign gold bond from HDFC?
Because they are issued by the Indian government, HDFC Sovereign Gold Bonds are one of the safest ways to invest in gold. Aside from not having to pay Tax Deducted at Source (TDS), investing in HDFC’s SGBs earns you a fixed interest rate of 2.5 percent per year. You don’t even need actual lockers to keep them.
When can I acquire a sovereign gold bond?
Instead, the government will periodically open a window for investors to purchase SGBs. The bonds will not be available throughout the year. The only way out for investors wishing to buy SGBs at any point in the future is to buy previous issues (at market value) that are available on the secondary market.
Is the Sovereign gold bond now available?
The central government’s Sovereign Gold Bond Scheme 2021-22 Series IX is up for subscription today, January 10, 2022, and will be open for five days until Friday, January 14, 2022. The RBI issues bonds on behalf of the Indian government under this arrangement.
Which financial institutions provide sovereign gold bonds?
You can invest in gold bonds by filling out an application form given by issuing banks or available at authorized post offices. You can also get the application form from the Reserve Bank of India’s website. Many institutions, like the State Bank of India and Kotak Mahindra Bank, allow bond applications to be submitted online.
Every candidate must supply their PAN number, which is provided by the IRS. It is impossible to invest in gold bonds without a PAN.
Nationalized Banks, Scheduled Private Banks, Scheduled Foreign Banks, Designated Post Offices, and the Stock Holding Corporation of India sell gold bonds through their offices or branches.
There is a set of requirements that must be met in order to receive gold bonds. The fact that you applied for it does not guarantee that you will be granted the bond. On the websites of the above commercial banks, you can apply for gold bonds online. For individuals who apply online, the issue price of the gold bonds would be Rs.50 per gram less than the nominal value.