What is Sovereign gold bond scheme?
Gold bonds are issued by the RBI in order that people can invest in gold with none risk. The RBI also pays interest annually on this gold bond.
This year, the subscription for gold bonds is opening at a time when there's a rise of 37% in gold prices. the worth of gold has now reached around 54000 per 10 grams.
How to buy Sovereign gold bond?
You can easily buy this gold bond online. There are some ways to shop for gold bonds like sale bank - Stock Holding Corporation of India Limited then on and you'll easily buy gold bonds through select post offices and stock exchanges like NBSE. If you are doing online banking, you'll get direct investment in it and you'll also get gold at cheap prices.
Benefits of shopping for Gold Bond - what proportion interest are going to be received?
RBI pays a full 2.5% interest on gold bonds. this suggests if you purchase a gold bond of ₹ 1000, you'll tend interest of ₹ 25 annually. RBI transfers the interest to your account every 6 months but the last test of interest is given to you on the maturity of the gold bond. This gold bond is given for 8 years but before the completion of 5 years, you'll also sell it within the fifth, sixth and seventh year. If you would like to sell it before 5 years, you'll sell it on the stock market and take money adequate to its market price.
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Know these 9 main things about Sovereign gold bond scheme:
- Gold bond scheme 2020-21 is going to be open till 4 September.
- These gold bonds are going to be made on 8 September 2020.
- These gold bonds are going to be issued by the RBI. you'll get a certificate by purchasing a gold bond. this may also invest your money in gold and you'll not need to worry about keeping gold.
- This gold bond will mature after 8 years. But after completing 5 years, you'll redeem this bond within the sixth seventh year.
- You can buy this gold bond online, Scheduled Commercial Banks, Stock Holding Corporation of India Limited, Post Office and the stock market.
- After redeeming the gold bond after 8 years, you'll be paid on the idea of the price of 999 purity gold.
- You can sell and buy bonds on the stock market through a Demat account anytime after purchasing a gold bond. But you'll need to pay or take a market price on buying and selling bonds.
- You can also pledge this gold bond in banks to require a loan.
- Your government can pay 2.5 per cent interest annually on these gold bonds. aside from this, your entire capital gains are going to be tax-free at the top of his mature period. this is often a serious advantage of shopping for gold bonds.
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