HDFC Bank Sovereign Gold Bond

The HDFC Bank Sovereign Gold Bond Scheme is a great way to start investing in gold without facing the risk of purchasing and holding physical gold. The HDFC SGB offers you an opportunity to benefit from the gold price appreciation and regular interest payments, which are paid semi-annually.

You can apply for these bonds by visiting the HDFC bank or by logging in to your HDFC net banking account. The SGB HDFC bank is a hassle-free way to invest in gold while enjoying the added benefits of interest income, tax exemption, and ease of liquidity as it is tradable on stock exchanges.

HDFC Bank Sovereign Gold Bond 2023-24 Series IV

Investing in HDFC SGB allows you to invest in gold in a more secure and cost-effective manner. There are certain subscription periods where you can buy gold bonds from HDFC. The tranche period for the year 2023-2024 is February 12 – February 16, 2024. The application process is completely digital through net banking where you can get a ₹50 discount on purchasing your bonds online. Here are the details of the Series:

HDFC SGB Tranche Dates

HDFC Bank offers the Sovereign Gold Bond (SGB) scheme in multiple tranches throughout the year. These tranches allow investors to participate at different times, aligning their investments with favourable market conditions. Here are the tranche dates of the HDFC bank sovereign gold bonds:

Eligibility for Sovereign Gold Bond HDFC

The HDFC SGB offers a wide range of investors the opportunity to invest in gold bonds. Here are the eligibility criteria for the HDFC Bank Sovereign Gold Bond:

• Resident Individuals: Any individual resident in India can invest in SGBs.
• Minors: Investments can also be made on behalf of minors by their legal guardians.
• Hindu Undivided Families (HUFs): HUFs can invest up to 4 kg of gold in a fiscal year.
• Trusts, Universities, and Charitable Institutions: These entities can invest up to 20 kg of gold in a fiscal year.

Features of HDFC Bank Sovereign Gold Bond

HDFC Bank Sovereign Gold Bonds offers you attractive features, these are:

• Tenure: The bond has a maturity period of 8 years, with an option to exit after the 5th, 6th, or 7th year on interest payment dates.
• Denomination: Bonds are issued in multiples of 1 gram of gold.
• Interest Rate: Investors receive a fixed interest rate of 2.50% per annum, paid semi-annually.
• Issue Price: The issue price remains constant throughout the subscription period, with a ₹50 discount for online applications.
• Redemption Price: The redemption price is based on the average gold price of 999 purity for the previous three business days, as published by the India Bullion and Jewellers Association (IBJA).
• Tradability: The bonds are tradable on stock exchanges after a specified date as notified by the RBI.
• Lock-In Period: A lock-in of 5 years is applicable.

Benefits of Gold Bond Scheme in HDFC Bank

Investing in HDFC SGB comes with many benefits, these are:

• Capital Appreciation: Returns are linked to the price of gold, providing the opportunity for capital gains.
• No Storage Costs: Unlike physical gold, there are no risks or costs associated with storage.
• Tax Benefits: Capital gains from SGBs are exempt from tax if held till maturity.
• Safe and Secure: The bonds are issued by the Government of India, offering a risk-free investment option.

Steps to Invest in HDFC Bank Sovereign Gold Bond Online

Investing in HDFC SGB can be done online through net banking, here are the steps that you can follow:

Step 1: Login to HDFC Bank NetBanking.

Step 2: Click on the ‘Offers Tab’ to find the Sovereign Gold Bond scheme.

Step 3: Select the SGB tranche you wish to apply for.

Step 4: Enter the amount of investment (in grams of gold).

Step 5: Make the payment using your NetBanking account.

Step 6: Upon successful payment, the bonds will be credited to your Demat account.

Steps to Invest in HDFC Bank Sovereign Gold Bond Offline

You can also invest in the HDFC Bank Sovereign Gold Bond at the HDFC bank branch if you wish to, here are the steps you can follow:

Step 1: Visit your nearest HDFC Bank branch.

Step 2: Fill out the SGB application form with all necessary details, including PAN number.

Step 3: Submit the form along with the required documents.

Step 4: Pay the investment amount through your HDFC Bank account.

Step 5: A holding certificate will be issued as proof of your investment in the bonds.

Tax Benefits of Investing in HDFC Bank SGB

Sovereign Gold Bonds offer various tax benefits, although the interest earned on the investment is subject to tax under the Income Tax Act, 1961. Here are the tax benefits that you can enjoy if you invest in HDFC bank Sovereign Gold Bond:

• Capital Gains: If held till maturity of 8 years, capital gains tax on redemption is exempted for individual investors.
• Indexation Benefits: For transfers made before maturity, indexation benefits are available for long-term capital gains.
• No TDS: Tax Deducted at Source (TDS) is not applicable to SGBs, although investors are responsible for paying applicable taxes.

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