The bond's tenor is eight years, although, after the fifth year from the date of issuance, early encashment or redemption of the bond is permitted.
Investors can contact the concerned bank, SHCIL offices, post office, or agent thirty days before the payment date in the event of early redemption.
The Sovereign Gold Bonds are issued in denominations of one gram of gold and multiples thereof.
The quantity of gold for which the investor pays is protected since he receives the ongoing market price at the time of redemption/ premature redemption.