Gold bond redemption today: Two SGB series eligible for premature exit; check your returns

If you invested in Sovereign Gold Bonds (SGBs), today, August 11, 2026, is an important date as two SGB tranches are eligible for premature redemption.

• SGB 2019-20 Series IX issued on February 11, 2020

• SGB 2020-21 Series V issued on August 11, 2020

The RBI has set the premature redemption price at ₹14,957 per gram/unit for both series.

"The price is based on the simple average of the closing price of 999-purity gold for the three preceding business days, as published by the India Bullion and Jewellers Association (IBJA)," the central bank said.

SGB 2019-20 Series IX

This series was issued at ₹4,070 per gram. Investors who applied online and paid digitally received a ₹50 discount, so their effective issue price was ₹4,020 per gram.

At today's premature-redemption price of ₹14,957, the calculation is:

For investors who paid ₹4,070: ₹14,957 - ₹4,070 = ₹10,887 capital gain per unit

That works out to a gain of approximately 267.7% on the original investment.

In other words, ₹1 lakh invested at ₹4,070 per unit would be worth approximately ₹3.68 lakh at today's redemption price, ignoring interest.

For investors who paid the discounted ₹4,020: ₹14,957 - ₹4,020 = ₹10,937 capital gain per unit

That's a gain of approximately 272.1%.

So ₹1 lakh invested at the discounted issue price would be worth approximately ₹3.72 lakh, again excluding interest.

SGB 2020-21 Series V

This series was issued at ₹5,334 per gram. For investors who applied online and paid digitally, the ₹50 discount reduced the issue price to ₹5,284 per gram.

At today's redemption price of ₹14,957, the calculation is:

For investors who paid ₹5,334: ₹14,957 - ₹5,334 = ₹9,623 capital gain per unit

That's a gain of approximately 180.4% on the original investment.

So ₹1 lakh invested at ₹5,334 per unit would be worth approximately ₹2.80 lakh at today's redemption price, excluding interest.

For investors who paid the discounted ₹5,284: ₹14,957 - ₹5,284 = ₹9,673 capital gain per unit

That's a gain of approximately 183.1%.

So ₹1 lakh invested at the discounted issue price would be worth approximately ₹2.83 lakh, excluding interest.

The above calculations show only the increase in gold's value. SGB investors also receive 2.5% annual interest, paid every six months.

Tax rules for SGB investors have changed

Previously, capital gains arising from both maturity and eligible premature redemption of Sovereign Gold Bonds were exempt from tax. From April 1, 2026, however, the exemption is available only when the investor bought the SGB during the original issue and holds it until its scheduled maturity.