SGB 2017-18 Series-III matures with 338% returns for investors

Sovereign Gold Bond investors can redeem Series-III tranche on October 16, 2025, earning massive gains over eight years

The Reserve Bank of India (RBI) has announced the final redemption price for the Sovereign Gold Bond (SGB) 2017-18 Series-III, with the redemption scheduled for October 16, 2025. The bonds, issued in October 2017, were subscribed between October 9-11, 2017, and issued on October 16, 2017.

Sovereign Gold Bond Final redemption price and returns

Investors holding the Series-III tranche will receive Rs 12,567 per unit on redemption. This price is calculated as the simple average of the closing gold prices of 999 purity over the three business days preceding the redemption, October 13, 14, and 15, 2025.

 

For context, these bonds were originally issued at Rs 2,866 per gram, meaning the investment yields an absolute return of nearly 338 per cent, without even factoring in the annual interest of 2.5 per cent paid to bondholders.

 

In simple terms, an investor who bought one unit of the bond in 2017 at Rs 2,866 per gram would gain Rs 9,701 in capital appreciation alone by 2025. 

About Sovereign Gold Bonds

The SGB scheme, managed by the RBI on behalf of the Government of India, offers a secure alternative to holding physical gold.

 

Key benefits include:

 

• Eliminates concerns over storage and purity. 
• Offers a fixed 2.5 per cent annual interest on the invested amount. 
• Bonds are tradable and transferable and can be used as loan collateral. 
• Premature redemption is allowed after five years from the date of issue. 
• Investor eligibility and procedure

 

Eligible investors include Indian residents, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions. Individuals who change their residential status after investing may continue to hold the bonds until maturity or opt for early redemption. 

 

Ahead of maturity, investors are notified a month in advance. On the redemption date, proceeds are credited to the bank account registered with the bond. Investors must ensure their bank and contact details are up to date to avoid delays.