SGB redemption today: Investors to get 325% return for this Sovereign Gold Bond series

The Reserve Bank of India (RBI) on Wednesday announced that the final redemption price for the Sovereign Gold Bond (SGB) 2017-18 Series-IV, due on October 23, 2025, has been fixed at ₹12,704 per gram of gold.

Accordingly, the redemption price for final redemption due on October 23, 2025, shall be ₹12,704 per unit of SGB based on the simple average of the closing price of gold of 999 purity of the previous three business days from the date of redemption i.e., October 17, 2025, October 20, 2025, and October 22, 2025.

325% absolute returns for these SGB investors

The bond was originally issued on October 23, 2017, at a price of ₹2,987 per gram. With the maturity payout now fixed at ₹12,704, investors stand to earn an absolute return of 325%, excluding the additional annual interest of 2.5% that SGB holders have been receiving during the tenure.

The absolute return amounts to ₹12,704 minus ₹2,987, which equals ₹9,717 (excluding interest). This represents a return of 325%, calculated as (9,717 ÷ 2,987) × 100.

SGBs are automatically credited to the investor’s bank account upon maturity. Additionally, any capital gains earned by individuals through redemption are exempt from tax.

SGBs give an interest of 2.50% (fixed rate) per annum on the initial investment amount. This interest is credited semi-annually to your bank account, and the last interest will be payable on maturity along with the principal.

According to the RBI bulletin, international gold prices have gone up due to ongoing economic and geopolitical tensions, which have led both central banks and investors to buy more gold. This global trend has also pushed domestic gold prices higher.