Massive 370 percent return! SGB 2018–19 Series V turns Rs 1 lakh investment into Rs 4.6 lakh; check redemption price by RBI

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• SGB 2018–19 Series V investors can redeem early on January 22, 2026.
• Premature redemption price set at Rs 14,853 per unit by RBI.
• Investors saw gains of nearly 360–370% over seven years, excluding interest.

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Investors in Sovereign Gold Bond (SGB) 2018–19 Series V can opt for premature redemption on January 22, 2026, as Reserve Bank of India has announced its early exit. The tranche is completing five years since the issue date which makes it eligible for premature redemption.

As per the Government of India notification dated October 8, 2018, premature redemption of SGBs is allowed after the fifth year from the date of issue, provided it falls on an interest payment date. Accordingly, the due date of premature redemption of the above tranche is set for January, 22, 2026.

What is the redemption price for SGB 2018–19 Series V

The central bank has fixed the premature redemption price at Rs 14,853/-. The bond was issued at a price of around Rs 3,214 per unit in January 2019.

How is the redemption price calculated

The price has been calculated based on the simple average of the closing price of gold of 999 purity for the previous three business days, as published by the India Bullion and Jewellers Association (IBJA).

Accordingly, gold prices of three business days i.e. January 19, January 20, and January 21, 2026 were considered for arriving at the redemption value.

The redemption amount will be credited directly to the investor’s registered bank account.

Sovereign Gold Bonds are issued by the Government of India and managed by the RBI, offering investors exposure to gold without holding physical metal. In addition to gold price appreciation, SGBs also pay 2.5 percent annual interest, credited semi-annually.

How much did investors gain?

The SGB 2018–19 Series V was issued in January 2019, when gold prices were significantly lower. At the current redemption price, an investor who put Rs 1 lakh into this tranche has seen the value of the investment swell to around Rs 4.6–4.7 lakh, translating into a gain of nearly 360–370% over seven years—excluding interest income.

In addition to capital appreciation, SGB investors also earn 2.5% annual interest, paid semi-annually, further enhancing overall returns.

How premature redemption works

SGBs have an 8-year tenure, but investors are allowed to exit early starting the 5th year—only on the dates when semi-annual interest is paid. Premature redemption must be initiated through the investor’s bank, post office, or agent from whom the bond was purchased, typically with a request submitted several days in advance.

What is the Sovereign Gold Bonds scheme?

SGB Scheme was introduced by the Indian government in November, 2025 as an alternative to attract gold ownership. The bonds were issued by the RBI for and on behalf of the Centre. The bonds denominated in grams of gold offered investors dual benefit-- earning a fixed annual interest of 2.5% on the issue price and earning capital appreciation linked to gold prices. The scheme majorly aimed to reduce India’s reliability on imported physical gold, curb hoarding, and channel household savings into financial assets.

How do Sovereign Gold Bonds work?

If you want to invest in Sovereign Gold Bonds, all you need is to purchase Sovereign Gold Bond from either a bank, SHCIL or designated post offices. For offline purchases, an SGB certificate from the holding of the issuing bank or designated post offices is issued. You can collect it. In case you have purchased an SGB online, your demat account portfolio will reflect. The SGBs offer an interest of 2.5% per annum.

What is the tax treatment of Sovereign Gold Bonds

As per the provisions of the Income-tax Act, 1961 (Section 43 of 1961) the interest on the SGBs is taxable. When an individual redeems these bonds, they are free from paying capital gains tax. Any capital gains that result from the transfer of the bonds on the exchange will be eligible for the indexation benefits.