Sovereign Gold Bond investors will get 341% return, RBI announced the final redemption for this series.

News Topical, Digital Desk : The Reserve Bank of India (RBI) has announced the final redemption of the 2017-18 Series-X Sovereign Gold Bonds issued on December 4, 2017. Today, December 4, 2025, these bonds were redeemed at ₹12,820 per unit, representing a robust return of 332.96% over the issue price of ₹2,961. This return is due solely to the appreciation in gold prices and does not include the 2.5% annual interest income earned over the entire 8 years.

Related Stories

When these bonds were issued, a discount of ₹50 was also offered for online payment. Taking this discount into account, the yield increases to 340.39%, based on the effective issue price of ₹2,911.

Calculation of Redemption Price

The redemption price is based on the average of the closing gold prices published by the India Bullion and Jewellers Association (IBJA) on December 1, 2, and 4, 2025. According to News18, this price is determined by taking the average of the closing prices of these three trading days.

Terms of Gold Bond Scheme

Government gold bonds mature after 8 years. However, it is possible to redeem them five years after the bonds are issued, and in such cases, payment is made on the next interest payment date. Thus, if investors redeem the bonds after 5 years, they receive their value along with the final interest payment.

Tax Status on Gold Bonds

Interest income earned on gold bonds is taxable under the Income Tax Act, 1961. However, capital gains arising upon redemption of the bonds are exempt from tax. Long-term capital gains arising from the transfer of the bonds are also subject to indexation benefits, providing a tax exemption.

Interest Rate on Gold Bonds

The interest rate on these bonds is set at 2.5% (annual), which is credited to investors' bank accounts every six months. This interest rate provides investors with consistent returns, which, along with the appreciation in the value of gold, also provides a source of steady income.

Read More: Zinc prices surge, boosted by supply constraints and Fed rate cut expectations.