SGB 2017-18 Series-IX Matures: Money quadruples, tax-free profit | Explained

New Delhi: The Reserve Bank of India (RBI) has fixed the redemption price for the 2017-18 Series-IX Sovereign Gold Bonds (SGB). This price is Rs 12,484 per gram. Gold bonds have matured after the completion of 8 years. Investors' money has increased more than 4 times in the last 8 years. Today i.e. on 27 November 2025, this bond is maturing. Investors who persist in this investment till the maturity period have received a return of 330 percent.

People bought this bond in November 2017 at Rs 2,914 per gram. Now its market value is Rs 12,484 per gram. That is, a net profit of Rs 9,570 has been made on every gram. That means it has given returns of more than 330 percent in the last eight years. If an investor had invested Rs 2,91,400 (100 units) in Series-IX in 2017, then today he will get Rs 12,48,400. That means money increased 4 times in eight years.

A total profit of 330 percent in 8 years means a return of about 20 percent CAGR every year. This has only happened due to the rise in the price of gold. Along with this return, interest of 2.5 percent has been received separately every year. Today, the money will come directly into the bank account of investors. The person will not have to pay any capital gains tax on this profit. This feature is available only in gold bonds.

SGBs give investors the benefit of both a rise in the price of gold and a fixed interest rate per annum. Interest payments are credited to the investor's account every 6 months. SGB investors get 2.50 percent (fixed rate) annual interest. Investors can avail tax free benefits by keeping SGB till maturity. However, investors also have the option to redeem ahead of time. The maturity period of every SGB scheme is 8 years, but premature redemption is done only after the completion of five years on the date announced by the RBI.