Whoever said wishes don’t come true hasn’t explored our offers!
  • Gold Schemes by Jewellers & Banks

    Gold Schemes by Jewellers

    What is a Gold Scheme by Jewellers?

    A Gold Deposit or Saving Scheme by jewellers is a scheme where you can deposit your gold with the jeweller and earn a higher quantity of gold by the end of a year. Sometimes jewellers also give a monthly payment and also return your gold at the end of the term. The main objective of this scheme is to mobilise the gold, make it available from banks on loans, reduce the dependence on imported gold and conserve foreign exchange. Different jewellers have different version of gold saving schemes. Some jewellers require you to redeem your money in the form of jewellery.

    Here are the list of Jewellers that offers Gold Schemes

    How does Jeweller’s Gold Schemes work?

    There are various gold saving schemes offered by jewellers:

    • One of the most common scheme is when the jeweller asks you to pay a fixed amount every month during the scheme’s term. An additional month’s installment is added by the jeweller to your account. Money accumulated at the end of the term must be then used to buy gold jewellery from the jeweller itself at the prevailing rate.
    • Some jewellers have schemes where you can purchase gold coins with the invested amount. Under this scheme, redemption is cash is not possible.
    • Under some schemes, jewellers offers discounts on making charges and wastage and sometimes even a complete waiver.
    • Some jewellers allow you to opt for fixed weight schemes where you can decide the amount of gold you want the jeweller to add into your account every month. However, in such cases, you are required to make monthly payments based on the prevailing gold rate on the day of payment for the corresponding weight of gold.

    Things to remember:

    Before opting for a gold scheme by jewellers, you must keep a few things in mind, such as:

    • The jeweller you are investing with, should be of high repute. There is no guarantee that all schemes offered by all jewellers qualify as ‘deposits’ as per regulations of the Companies act. Therefore, the track record of the jeweller should be one of the major deciding factors.
    • Understand the scheme in detail before making the decision as you may be missing out on some advantages hidden in the clauses. Be clear of the exit clauses so that you are aware of what to do in case you want to opt out of the scheme before its maturity, without suffering any loss.
    • Always invest in hallmarked jewellery so that your jewellery is as pure as promised.

    Gold Schemes by Banks

    What is a Gold Scheme by Banks?

    Announced in the 2015 budget, Gold Schemes were introduced to encourage saving or deposit of idle gold in banks. This idle gold can in turn be loaned to jewellers or used for other purposes. According to the scheme, the bank is required to pay an interest to the depositor and jewellers can directly loan gold from banks. This way, our country can avoid spending on foreign reserves used for importing gold.

    Gold schemes allow us to deposit, invest or buy gold. The Prime Minister of India, Narendra Modi has recently launched three gold schemes, namely - the Gold Monetisation Scheme, Sovereign Gold Bond Scheme and the Gold Coin and Bullion Scheme.

    The Gold Monetisation Scheme (GMS) has been introduced to replace the existing Gold Deposit Scheme, 1999. Under the GMS, individuals, HUFs and trusts including Exchange Traded Funds and Sebi-registered Mutual Funds can deposit gold at collection centres or purity testing centres that are certified by the Bureau of Indian Standards. The principal and interest towards the deposit is denominated in gold. The deposit tenure ranges from 1-3 years (short-term), 5-7 years( medium-term) and 12-15 years (long-term). The gold deposit has a minimum lock-in period and if prematurely withdrawn can result in a penalty decided by the bank.

    Under the Sovereign Gold Bond Scheme, RBI issues gold bonds on behalf of the Indian Government. Gold bonds are denominated in multiples of grams(s) of gold, where the basic unit is 1g. Bond tenure options are up to 8 years where you are given an option to exit in the 5th year. You can buy a minimum of 2g worth of gold bonds and a maximum of 500g worth of gold bond per individual in one fiscal year.

    Under the Gold Coin and Bullion Scheme, the government will be issuing gold coins of 5g & 10g initially and then 20g bars will also be available. The coins issued will be the first ever national gold coins with Ashok Chakra engraved on them.

    How does Gold Scheme work by Banks?

    A Gold Scheme works in the following way:

    • Depositors are first required to get an approval for the gold they want to deposit. Approval can be obtained from approved collection centers, where verification of the gold’s purity takes place. Then the gold is allowed to be deposited.
    • The collection centers send the deposited gold to refineries in order to melt it. This is done only after the customer’s consent.
    • A certificate for the gold deposited, is issued by the collection centers, which can then be provided to the bank in order to open a Gold Savings Account.
    • The refineries store this gold at a mutually decided fee between them and the bank. Customers are not required to pay any charges towards this service.

    Salient Features of Gold Scheme by Banks

    Some of the main features of a Gold Scheme are:

    • A minimum of 30 gram of gold can be deposited under this scheme.
    • Gold can be deposited in all forms such as coins, bars or jewellery.
    • There are 331 collection centers where gold can be tested and deposited.
    • Gold schemes are available for a short period (1- 3 years), medium (5 – 7 years) and long term (12 – 15 years). Different tenures can be availed at different interest rates.
    • You have the option of breaking the lock-in period, however you will be required to pay a penalty in that case.
    • The interest rate depends on the value of the gold deposited and is payable in rupees.
    • Interest rates for short term gold deposits are decided by banks, while interest on medium and long-term gold deposits is set by the Government.
    • Redemption on short-term deposits can be made in cash or gold, however redemption on long and medium term deposits is done only in cash.
    • Another beneficial feature of a gold scheme is that the interest paid towards the deposit is tax exempted.
    • The bank is free to use the deposited gold in any way it sees fit, such as RBI Gold reserves, auctioning, etc.
    • Gold that has been deposited for a short period can be loaned to jewellers.
    • Jewellers can also open a Gold Metal Loan Account, where gold is denominated in grams.
    Gold Rate In Metro Cities
    Gold Rate In Other Capitals
    Gold Rate In Other Major Cities
    Gold Rate In States
    Bank Gold Schemes
  • reTH65gcmBgCJ7k - pingdom check string.
    reTH65gcmBgCJ7k - pingdom check string.
    This Page is BLOCKED as it is using Iframes.