Senior citizens who have yet to subscribe to the Sovereign Gold Bond 2023-24 Series III should do it before the deadline ends today. They can purchase them online or by visiting a bank branch; however, they can get an instant discount of Rs 50 per gram if purchased via digital channels.

These bonds mature in eight years and offer senior citizens a regular guaranteed annual income besides the value addition of their investments. It is the third tranche of SGBs launched by the Reserve Bank of India (RBI) after a positive response from the public in the previous series. 

The SGB 2023-24 Series III bonds opened for subscription on December 18 and will close today. The bonds are priced at Rs 6,199 per gram of gold with a fixed 2.50 percent interest rate per annum. The interest is paid to the investors semi-annually based on the nominal value.

Sovereign Gold Bond offers an attractive option for people having safety concerns over holding physical gold, besides providing investors with an excellent opportunity to diversify portfolios and benefit from capital appreciation linked to gold prices without the hassle of their storage. 

Also Read: Things Senior Citizens Should Consider Before Buying Digital Gold

Benefits 

Historically, gold has provided steady returns, making it an ideal choice for risk-averse investors, like senior citizens, for long-term wealth creation.

You can buy these bonds from various commercial banks online via net banking or mobile apps or by visiting their branches. You can also buy them at post offices. Investors must fill out a form, specify the units they are buying, and pay online or via cheque, demand draft, etc.

Alternatively, one can buy SGBs through the RBI Retail Direct website, Stock Holding Corporation of India Limited (SHCIL), and recognized stock exchanges. They must submit an Aadhaar Card, PAN card, and other details to complete the process.

Who Are Eligible?

Individual investors and Hindu undivided families (HUFs) have a maximum subscription limit of 4 kg, whereas trusts and similar entities can invest up to 20 kg in a financial year. Though SGBs have an eight-year lock-in, you can withdraw them prematurely after the fifth year.

RBI, which administers the issuance of these bonds on behalf of the central government, will release the SGB 2023-24 Series III on December 28.