The fixed 2.5% annual interest paid on Sovereign Gold Bonds
The fixed 2.5% annual interest paid on Sovereign Gold Bonds
SGB Interest Rate is the fixed annual interest of 2.5% paid on Sovereign Gold Bonds by the Government of India.
Interest details: - Rate: 2.5% per annum (fixed for all SGB series) - Payment: Semi-annual (every 6 months) - Calculation: Based on issue price, not market price - Taxation: Interest income is taxable at investor's slab rate
Interest payment dates are typically: - 6 months from issue date - 12 months from issue date - And so on, until maturity
The interest rate is one of SGB's key advantages over other gold investments like Gold ETF or physical gold, which don't provide any income.
Interest is paid directly to the investor's bank account linked to the demat account.