Gold bond plan opens for subscriptions in Andhra Bank next week

Hyderabad: Andhra Bank on Saturday announced the opening of Sovereign Gold Bond Scheme Tranche-II for public subscription from next week at its 2,755 branches spread across the country. The scheme will be open for public subscription from January 18 to 22 at all Andhra Bank branches, the state-run lender said in a release in Hyderabad.

Under the plan, eligible persons (individuals, joint persons, associations and trusts) can apply for gold bonds of minimum 2 grams and maximum 500 grams. The bond tenor is 8 years with provision of premature cancellation after 5 years. The RBI had earlier notified a rate of interest of 2.75 per cent per annum and a rate of Rs 2,600 per gram for subscriptions under SGB Tranche-II.

The scheme enables people to invest in gold without physically buying the gold and receive money equivalent to the market value of gold as determined by the RBI at the time of redemption. The interest on the invested amount will be paid semi-annually, Andhra Bank said. The scheme provides adequate protection against the price fluctuation in gold during the period of investment, it added.