Andhra Bank announces opening of Gold Bond scheme series-III

Andhra Bank has announced the opening of Sovereign Gold Bond Scheme 2016-17 series-III as notified by Government of India for public subscription from Monday. The scheme will be open till November 2, 2016 at all its 2,853 branches across the country, the bank said.

The bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and charitable institutions. The tenor of the bonds is 8 years with provision of premature cancellation after 5 years.

RBI has notified a rate of interest of 2.5 per cent per annum on the initial investment based on nominal value. The nominal price of gold is based on simple average of closing price of gold as published by India Bullion and Jewellers Association( IBJA) in the preceding week to the issue. The issue price was fixed Rs 50 less than the nominal price. The issue price of the Sovereign Gold Bond for this tranche has been fixed at Rs 2,957 per gram of gold.

 

The Gold Bond 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 RBI at the time of redemption besides earning interest on the invested amount semi-annually.