Applying for Sovereign Gold Bonds (SGBs)

Consider the following pointers before investing in SGBs

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Same interest rate

All banks, post offices and stock exchanges offer the same interest rate on SGBs. If anyone promises a higher interest rate on Sovereign Gold Bonds, they are a fraud or Ponzi

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Deposit tenure

Make sure you are not putting all your saved money in Sovereign Gold Bonds. Keep some amount of money in short-term investments as well.

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Not for emergencies

Keep some amount of your savings in your savings bank account for emergencies. Don’t put all your savings into investments.

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Premature withdrawal

Make sure you do not withdraw your SGB investment before maturity. Premature withdrawal might sometimes not be allowed or have a penalty.

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Risk

Since you get your money back in terms of the value of gold at the time of redemption, you might lose some amount of capital if the value of gold falls.

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Nomination

Make sure you enter the correct nomination details while filling out the SGB form. Filling nomination details ensures that your invested money goes to the right person in case of death.

Applying for Sovereign Gold Bonds (SGBs)

Keep the following in mind while applying for SGBs.

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Who is eligible to invest in SGBs?

  • Adult individuals

 

  • Joint account 

 

  • HUF (Hindu Undivided Family)

 

  • A Guardian on behalf of a minor

 

  • Charitable institutions or trusts

 

  • Universities

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Documents required for SGBs

  • Duly filled SGB application form

 

  • Duly filled nomination form

 

  • Your PAN card

 

  • Your Address Proof (Aadhaar card, utility bills like electricity, landline telephone bills etc.)

 

  • Two passport sized photographs

 

  • The amount you wish to invest (if investing offline with a cheque or cash)

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How to open an SGB investment offline?

Given below are the steps to apply for SGBs offline.

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    You can invest in SGB only when the government opens the investment window

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    These announcements are placed in newspapers and are announced by banks and post offices

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    When the investment window is open, you can visit your nearest bank branch or post office

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    Ask for the application form to invest in SGB

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    Fill in the details correctly in the SGB application form and nomination form

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    Take copies of your identity and address proof with you while applying

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    Verify your documents with the original

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    Submit the investment amount in the form of cash or cheque

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    If all your eligibility documents are correctly filled, you will get the allotment

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    Take the receipt and the SGB certificate of your investment

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    Your SGB investment certificate will look like this

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    Check if all the details are correctly mentioned and keep it safe till redemption

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    Your SGB investment will then be active

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    Please note that no bank official or bank will call you or email you for any OTP, user ID, password, PIN or any card number and CVV.

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How to open an SGB investment online?

Applying for SGB online can be cheaper. Given below are the steps to follow to apply.

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    Online applicants will have to pay ₹50 less for the issue price than offline

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    You can apply online for SGB through the netbanking website of your bank

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    You can click on Deposits and select SGB

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    Fill out the details in the application form and nomination form for SGB

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    Make payment for the investment using the online payment mode

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    • You can download the receipt and certificate of your SGB investment 
    • Your SGB investment certificate will look like this
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    Your SGB investment details will now appear when you log in to your bank’s internet banking website

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    Please note that no bank official or bank will call you or email you for any OTP, user ID, password, PIN or any card number and CVV.

Next section will tell us about how to close and withdraw SGBs

Next Chapter