The Sovereign Gold Bond Scheme of the Government of India is represented by sovereign gold bonds. It is one of the best ways to invest your money. As part of a subscription, investors can purchase sovereign gold bonds which are made of 24-karat gold. Bonds are distributed in grams of value per unit. One gram of gold is the lowest unit of value. Interest is paid out every six months at a fixed annual interest rate of 2.5 percent. Investments in bonds have a set tenure of 8 years. Investors may, however, choose to leave the program after five, six, or seven years. This is permitted, only on the days the interest is paid to you.