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Tomorrow (28th April) last day for applying to buy gold bonds from Indian Bank
Posted on: 27/Apr/2017 4:49:16 PM
The Regional General Manager (North) of Indian Bank, Mr M. Karthikeyan, explained, central government had introduced the scheme of buying gold bonds instead of buying gold and keeping it in the year 2015. The scheme is progressing well.
The public has been given a chance to join the gold bonds scheme from 24th April until 28th April. A single individual can buy bonds equivalent to 1 gramme gold up to 500 grammes of gold. The other members of the family can also avail the similar facility to procure gold bonds.
Presently, 1 gramme of gold price is fixed at Rs. 2901. For the people who apply to join this scheme, the gold bonds will be issued on 12th May 2017.
The gold bond is valid for a period of 8 years. An arrangement has been made to foreclose the bond after completion 5 years and get the cash back. In other words, the gold bond can be closed from the 5th year of completion till the 8th year. When closing the bond, an amount equivalent to the prevalent market rate for gold will be paid.
Benefits:
- When buying and keeping as gold, there are always chances of theft or misplacement. If you keep in bank safety lockers, you have to pay for the locker facility. Also, there are chances of doubts about the genuine quality of gold – especially the purity.
- However, if gold is bought as a bond, these problems will not arise. Further, there is an annual interest rate of 2.5 percent to the buyer. In case the price of gold goes up, the interest paid also will go up.
- There is a facility to pledge this bond and get loans. The bond can be used for the gold trading as well. To join this scheme, you can get application forms in all Indian Bank branches.
