ICICI Bank Sovereign Gold Bond

For centuries, gold has always been the safest and most valuable asset, but investing in physical gold can be challenging due to the concerns of physical storage, purity, and security. ICICI offers you an easier way to invest in gold through Sovereign Gold Bonds. The ICICI Bank Sovereign Gold Bond is a more secure and convenient way to invest in gold and earn attractive interest.

ICICI Bank SGB offers you an opportunity to earn both the benefit of capital appreciation as per the market price of gold and interest income at a rate of 2.50% p.a. Moreover, if you hold the ICICI SGB until maturity, you can also enjoy tax benefits.

ICICI Bank Sovereign Gold Bond 2023-24 Series IV

The ICICI bank offers Sovereign Gold Bond 2023-24 Series IV, which is available for purchase from February 12- February 16, 2024. Here are more details of the ICICI SGB Series IV:

ICICI Bank Sovereign Gold Bond Eligibility

The ICICI Sovereign Gold Bond is available to a wide range of investors giving every Indian resident a chance to invest in gold and benefit from capital appreciation as well as interest on their investment. Here are the eligibility criteria for ICICI SGB:

• Investors must be Indian nationals.
• Any individuals, Hindu Undivided Families (HUFs), Trusts, Universities, and Charitable Institutions are eligible to invest in ICICI SGB.

Features of ICICI Bank Sovereign Gold Bond

The ICICI Bank Sovereign Gold Bond offers several key features, these are:

• Tenure: Each ICICI Bank SGB has a tenure of 8 years, with an option to exit from the fifth year onwards, which can be done on the interest payment dates.
• Denomination: SGBs are denominated in grams of gold, with a minimum investment of 1 gram.
• Exit Option: You can opt for an exit from the bond after 5 years from the date of issue, making the bonds flexible to your financial needs.
• Redemption: The redemption price of the bonds will be based on the average closing price of gold of 999 purity of the previous 3 business days, as published by the India Bullion and Jewelers Association Limited (IBJA).
• Holding Certificate: Upon investment, a holding certificate will be issued as proof of your ownership of the bonds.
• Maximum Investments: There are certain limits to how much eligible entities can invest in. For individuals and HUFs the maximum SGB they can hold is 4 Kgs while Trusts, Charitable institutions, Universities and similar entities can hold a maximum of 20 KGs.

Benefits of ICICI Bank SGB Schemes

Investing in ICICI Sovereign Gold Bond can offer you many benefits, these include:

• Capital Appreciation: The value of your investment in SGBs is directly linked to the market price of gold. As gold prices rise, so does the value of your investment.
• Interest Income: Unlike physical gold, SGBs provide an annual interest rate of 2.50%, paid every six months. This interest is in addition to the potential capital appreciation.
• Elimination of Physical Risks: SGBs eliminate all risks associated with physical gold, such as theft, storage costs, and impurity concerns. You hold the equivalent value of gold, without the need to physically possess it.
• Tax Benefits: One of the most significant benefits of SGBs is the exemption from capital gains tax if you hold the bonds until maturity. Additionally, long-term capital gains from the sale of SGBs enjoy indexation benefits.
• Hassle-Free: Investing in SGBs through ICICI Bank is entirely digital, meaning you can invest in gold without ever leaving your home. There is no need for physical storage, and the process is seamless and quick.
• Tradability: SGBs are tradable on stock exchanges within a fortnight from the date of issuance. This provides liquidity, allowing you to sell your bonds on the market if required.
• Transferability: SGBs are transferable, allowing you to pass on the investment to others as needed. The transfer is done via an Instrument of Transfer according to the Government Securities Act.

Steps to Invest in ICICI Bank Sovereign Gold Bond Online

You can easily apply for SGBs through ICICI Bank’s Internet Banking or the iMobile App. Here’s a step-by-step guide to help you get started:

Step 1: Log into ICICI Bank Internet Banking or the iMobile App.

Step 2: Navigate to the Sovereign Gold Bonds section.

Step 3: Choose the amount of gold you want to invest in (in grams).

Step 4: Complete the KYC process if required.

Step 5: Confirm the details and make the payment online.

Step 6: Upon successful completion, you will receive a holding certificate as proof of your investment.

Steps to Invest in ICICI Bank Sovereign Gold Bond Offline

You can also invest in ICICI SGB by visiting the bank branch, here are the steps you can follow:

Step 1: Visit the nearest ICICI Bank branch that offers Sovereign Gold Bonds.

Step 2: Request the SGB application form from the bank representative.

Step 3: Submit the necessary KYC documents such as PAN card, proof of address, and identification.

Step 4: Make payment for the investment amount through cheque, demand draft, or direct transfer from your ICICI Bank account.

Step 5: Once the payment is processed, you will receive an SGB certificate as proof of your investment.

Tax Benefits of Investing in ICICI Bank SGB

Investing in ICICI Bank SGB also comes with various tax benefits, these include:

• Exemption from Capital Gains Tax on Redemption: If you hold the SGBs until maturity (8 years), any capital gains arising from the redemption of the bonds are completely exempt from capital gains tax.
• Indexation Benefits for Long-Term Capital Gains: If you sell the bonds before maturity, you will incur long-term capital gains (LTCG), which are subject to tax. However, you are eligible for indexation benefits that adjust the purchase price for inflation, reducing the taxable amount.
• Interest Taxable as Income: The 2.50% interest you earn annually from SGBs is considered taxable income and is added to your overall income under the heading Income from Other Sources.

Besides buying Sovereing Gold Bond online, you can also check out other related topics from below: