If you invested in SGBs back in 2018 or 2019, you're in for a financial windfall. RBI announces early redemption with massive profits for bondholders.

Investors who chose to park their money in Sovereign Gold Bonds (SGBs) issued by the government in 2018 or 2019 have a major reason to celebrate. In a strong start to July, the Reserve Bank of India (RBI) has announced the early redemption of two SGB series — and the returns have surpassed expectations by a wide margin.

These government-backed investment instruments are now yielding profits as high as 240% in just 7 years, delivering both growth and security to investors. If you're holding these bonds, it might be the perfect time to redeem and cash in on your gains.

RBI Announces Early Redemption of Two SGB Series

On July 1, 2025, the RBI announced premature redemption for:

  • SGB 2017-18 Series-XIV

  • SGB 2018-19 Series-IV

These bonds have completed their 5-year lock-in period and are now eligible for early exit, offering returns between 208% and 240% — excluding the additional interest payouts.

What Are Sovereign Gold Bonds (SGBs)?

SGBs are government-issued securities denominated in grams of gold. They offer a safe and efficient alternative to physical gold investment. Investors earn returns based on gold price appreciation and also receive a fixed annual interest.

Each bond has an 8-year maturity, but investors can opt for premature redemption after the 5th year, on the dates specified by the RBI.

How Is the Redemption Price Calculated?

The redemption price is linked to the average gold price published by the India Bullion and Jewellers Association (IBJA) for the previous three business days. For the July 1, 2025 redemption, the average gold price of June 26, 27, and 30 was taken into account — resulting in a redemption value of ₹9,628 per gram.

How Much Profit Did These SGBs Generate?

Here’s a breakdown of the returns:

  • SGB 2017-18 Series-XIV

    • Issue Price: ₹2,831 per gram

    • Redemption Price: ₹9,628 per gram

    • Return: Approx. 240% gain (excluding interest)

  • SGB 2018-19 Series-IV

    • Issue Price: ₹3,119 per gram

    • Redemption Price: ₹9,628 per gram

    • Return: Approx. 208.69% gain (excluding interest)

In addition to price appreciation, bondholders received 2.5% annual interest, credited semi-annually to their bank accounts — making SGBs a doubly rewarding investment.

What Should You Do to Redeem Your Bonds?

If you're eligible and wish to redeem, follow these steps:

  • Check your SGB series to confirm if it’s eligible for early redemption.

  • Submit a redemption request to your bank, post office, or demat service provider before the cutoff date.

  • Update your contact and bank details if there have been any changes.

  • Upon redemption, the proceeds will be credited directly to your bank account.

  • Why SGBs Remain a Smart Investment

    Investing in Sovereign Gold Bonds not only offers a hedge against inflation through gold price appreciation but also provides:

    • Government backing, ensuring safety of capital

    • Fixed annual interest (2.5% per annum)

    • Tax benefits — no capital gains tax if held till maturity

    • Zero risks of storage or making charges associated with physical gold

    For investors who entered the gold bond market in 2018–19, this early redemption window represents an excellent opportunity to reap substantial gains, while still enjoying all the benefits of a safe, sovereign-backed asset.

    Conclusion:

    If you've been holding on to your SGBs, now is a great time to check your portfolio. With returns as high as 240% and a strong government guarantee backing them, these gold bonds have proven to be a golden investment — quite literally. And for those who missed out, this might just be your cue to consider SGBs during the next issuance window.

    Read more
    Rituraj Gaikwad took back his name from the English team! The reason for this decision has been revealed
    Tezzbuzz
    “Incredible fight” by Ravindra Jadeja at Lord’s gets him the MVP title for the team
    Tezzbuzz
    Ravi Kishan sleeps by touching his wife’s feet, Ajay Devgan said- ‘As much as the sinful man is as much…
    Tezzbuzz
    Because mother -in -law too, daughter -in -law’s reboot: Know all the special things
    Tezzbuzz
    Why are Hansika Motwani staying apart from husband? Learn the truth of rumors about sohael khaturiya
    Tezzbuzz
    Telugu actor Fish Venkat dies, took last breath at the age of 53
    Tezzbuzz
    Thunderbolts* Director Jake Schreier Reveals Why Taskmaster Had to Die
    Tezzbuzz
    Arjun Kapoor goes shirtless at the gym, shows off his ‘work in progress’ physique
    Tezzbuzz
    Coal India commits Rs 10 cr to strengthen Eklavya Model Residential Schools in Chhattisgarh
    Tezzbuzz
    Eternal Share Price | Quotable bruises will be shared, run shares, 45% upside returns can be found
    Tezzbuzz