Eighth tranche of Sovereign Gold Bond scheme to open November 9

NEW DELHI:  Indians have an emotional attachment to the yellow metal. So, if you are planning to 
invest in gold this Diwali then you can certainly opt for Sovereign Gold Bonds (SGBs) instead of gold in its physical form.

Here are all the important things that you need to know about the gold bond.

The eighth tranche of sovereign gold bonds for this financial year will open for subscription on November 9 and will close on November 13.

The issue price for the bond scheme 2020-21 Series VIII has been fixed at Rs 5,177 per gram of gold.  

The Reserve Bank of India (RBI) has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.

For such investors, the issue price will be Rs 5,127 per gram of gold, RBI said.These gold bonds have become quite popular as they offer investors twin benefits of price appreciation along with a fixed 2.5 per cent coupon per year.

Interest earned on these schemes is added to the holders’ income, and taxed according to their slab rate.

Gold bonds have a maturity period of eight years, but investors have the option to exit after the fifth year.

Experts say SGB is an effective way to invest and is more attractive if the buyer holds it on till maturity.