Over 300% returns! Gold delivers bumper gains as RBI announces SGB 2017-18 Series maturity date; check final redemption price

Sovereign Gold Bonds returns: With gold prices rallying strongly in the last few years, investors in Sovereign Gold Bonds or SGBs are looking at bumper returns! One such SGB is delivering a whopping return of over 300%!

The RBI has released the final redemption value for Sovereign Gold Bond 2017-18 Series VI, which matures on November 6, 2025. The first issuance of this series took place on November 6, 2017, according to RBI.

Sovereign Gold Bonds carry a fixed interest rate of 2.50% per annum. Individual investors receive capital gains tax exemption upon SGB redemption. This tax benefit, however, applies exclusively to individuals, not to companies, HUFs or others. Additionally, individuals lose this capital gains tax exemption when selling SGBs on the stock market. The interest earned from SGB remains taxable for all categories, according to an ET report. The SGB interest is deposited twice yearly into the investor's bank account. The final interest payment is disbursed at maturity alongside the principal amount.

SGB 2017-18 Series-VI: How investors are getting almost 317% returns
The RBI's official statement dated November 4, 2025, says: "In terms of GOI Notification F. No.4(25)-(W&M)/2017 dated October 06, 2017 (SGB 2017-18 Series-VI-Issue date November 06, 2017) on Sovereign Gold Bond Scheme, the Gold Bond shall be repayable on the expiration of eight years from the date of issue of the Gold Bonds. Accordingly, the final redemption date of the above tranche shall be November 06, 2025."

• For SGB 2017-18 Series-VI, the RBI has set the final redemption value at Rs 12,066 per unit, according to their official notification.
• The initial offering price was established at Rs 2,945 per gram at standard rate, whilst digital applicants received a Rs 50 discount, making it Rs 2,895. Upon final redemption, this investment will generate a straightforward return of approximately 317%!
• For investors who submitted their applications online and completed payment through digital channels, a Rs 50 per gram reduction was applied to the nominal value of the SGB.
• Taking the SGB series' online issue price of Rs 2,895 per gram into consideration, this series has generated an absolute straightforward return of approximately 317% at final redemption, the ET report said.
• The absolute return calculation shows Rs 12,066 - Rs 2,895 = Rs 9,171 (excluding interest). When expressed as a percentage, this equals 9,171 ÷ 2,895 ×100 = 316.7%.
• For those who purchased SGBs of the identical series through offline channels, the issue price was set at Rs 2,945 per gram of gold.

SGB holders should carefully examine the redemption schedule. Essential actions include:

a) Identify the tranche to which your bonds belong by checking the issue date.

b) Ensure that your request for the final redemption is submitted by the deadline mentioned in the schedule.