How to Invest in Government Bonds and SGBs Using Your Demat Account

How to Invest in Government Bonds and Sovereign Gold Bonds (SGBs) Through Your Demat Account

For investors seeking stable returns and capital safety, Government Bonds and Sovereign Gold Bonds (SGBs) are becoming increasingly attractive. The best part? You can invest in both directly through your Demat account.

This blog explains how to use your Demat account to buy and manage these secure investment options with ease.

What Are Government Bonds?

Government Bonds are debt securities issued by the Government of India to raise capital. When you invest in these bonds, you’re lending money to the government in return for a fixed interest rate over a specified period.

Popular Options Include:

• RBI Floating Rate Bonds

• G-Secs (Government Securities)

• Treasury Bills (T-Bills)

• State Development Loans (SDLs)

What Are Sovereign Gold Bonds (SGBs)?

SGBs are government-backed gold investment instruments issued by the RBI. They offer:

• Guaranteed annual interest (currently 2.5% p.a.)

• Price appreciation linked to gold rates

• Tax benefits on maturity

• No storage or purity risk like physical gold

SGBs are issued in tranches and held electronically in your Demat account.

Benefits of Investing via Demat Account

• Paperless & secure holding

• Easier liquidity on stock exchanges

• No TDS on interest payments

• Consolidated portfolio tracking

• Faster allotment & sale process

• Reduces chances of certificate loss or forgery

Step-by-Step: How to Invest in Government Bonds or SGBs via Demat

Step 1: Ensure Your Demat Account Is Active

If you don’t have one, open a free account with One Solution—SEBI-registered and CDSL-backed.

Step 2: Check Available Issues

• Visit your broker’s investment section

• Look under Bonds, Debt, or SGB Offers

• Check open tranches, price, tenor, and minimum investment amount

Step 3: Apply Through Your Demat Platform

• Choose the instrument

• Enter quantity and bid price

• Authorize payment via UPI, net banking, or ASBA

• Allotted bonds/SGBs will reflect in your Demat within 5–7 days

Step 4: Track & Hold

You can view, sell (if listed), or hold till maturity—all within your Demat dashboard.

Taxation of Government Bonds & SGBs

• SGBs: No capital gains tax on maturity (if held till term)

• Govt Bonds: Taxable as per your income slab

• Interest Income: Added to taxable income under ‘Income from Other Sources’

Why Use One Solution for SGBs and Bonds?

At One Solution, we make public investment simple:

• Free Demat account with digital onboarding

• Instant access to new bond and SGB issues

• Safe and CDSL-secured asset holding

• Expert alerts on upcoming RBI tranches

• Fast settlement and responsive support

Final Thoughts

For those who want to balance risk with safety and returns, government-backed securities like SGBs and G-Secs are solid options. With a Demat account, investing in these has never been more accessible.

Open your account with One Solution today and invest securely in India’s strongest financial instruments.