Sovereign Gold Bond (SGB)
Government-backed gold bond issued by RBI. Pays 2.5% annual interest, tax-free at maturity (8 years), no making charge.
SGBs are bonds denominated in grams of gold, issued by RBI on behalf of the Government of India. You earn 2.5% annual interest on the issue price plus capital appreciation in gold price. If held for the full 8-year maturity, capital gains are entirely tax-free. They are the most cost-efficient gold product in India but are only sold in specific issue windows (4–6 per year).