Andhra Bank has announced the opening of its sovereign gold bond scheme tranche-III, sponsored by the Government of India for public subscription from March 8-14 at all its 2779 branches across the country.
Under the Scheme, eligible persons (Individuals, Joint persons, Associations and Trusts) can apply for gold bonds (Minimum 2 grams and maximum of 500 grams). The tenor of the Bonds is 8 years with provision of premature cancellation after 5 years.
The RBI has notified a Rate of Interest of 2.75 per cent per annum.
The Gold Bond Scheme enables people to invest in gold without physically buying the precious metal and receive money equivalent to the market value as determined by RBI at the time of redemption and the interest on the invested amount will be paid semi-annually.
The scheme provides adequate protection against the price fluctuation in gold during the period of investment.