If you invested in the Sovereign Gold Bond (SGB) 2020-21 Series VI, issued on September 8, 2020, here’s some golden news:
Your investment has more than doubled in just 5 years!
Redemption Price Announced
- Issue Price (2020): ₹5,117 per gram
- Redemption Price (2025): ₹10,610 per gram
- Absolute Return: ₹5,493 per unit
- Growth: 107.35% (excluding interest income)
This redemption price is based on the average gold price of 999 purity from September 3–5, 2025, as published by the India Bullion and Jewellers Association (IBJA).
Why This Matters for Investors
- Tenure: 8 years, but premature redemption allowed after 5 years
- Interest: 2.5% per annum, paid semi-annually
- Tax Benefits:
- Capital gains on redemption are tax-free for individuals
- Interest income is taxable
How to Redeem Your SGBs
- Check your bond series and issue date
- Submit redemption request before the deadline
- Ensure your bank account is linked for interest and principal payout
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Key Takeaway
The SGB 2020-21 Series VI has delivered stellar returns, proving its value as a safe, tax-efficient alternative to physical gold. If you’re holding this bond, now’s the time to act and redeem smartly.