Gold has always had an allure that most of us have found hard to resist. Indians’ love for gold has been well documented, from our extravagant wedding jewellery to being a safeguard against times of adversity. While the appetite for gold has not reduced, the surging price of the precious metal has resulted in many having to put off its purchase. However that need not be a concern anymore, thanks to ICICI Bank’s gold schemes.
The bank has a series of schemes, from investment options in the metal to recurring deposit accounts set up to save up for gold purchases.
Given below are the series of options that can be availed through ICICI Bank.
ICICI Dream Gold Plan
The ICICI Dream Gold Plan is a fixed deposit scheme whereby the investor deposits a set sum of money with the purpose of the deposit being to fund the purchase of gold. The plan has both a Fixed Deposit as well as Recurring Deposit option.
The plan provides investors with the opportunity to earmark funds specifically for the purchase of gold by building up their savings through the Recurring Deposit plan, or locking away a set amount of money through the Fixed Deposit option.
ICICI Dream Gold Plan Features:
- Interest from the deposits will not attract TDS in case of Recurring Deposits.
- The plan can be auto-renewed upon maturity.
- A fixed minimum amount (depending on the type of deposit being availed) is to be made for a minimum tenure of 6 months.
- Investors can avail a loan of up to 90% of the deposit amount.
- Investors assured of attractive returns on investment at the end of deposit tenure.
- The plan allows for premature withdrawal, subject to certain penalties that will be levied.
- Investors can choose between two options, depending on whether they are investing in a Fixed Deposit or a Recurring Deposit, with interest paid out depending on the prevailing rates at the time of maturity.
ICICI Dream Gold Plan Benefits:
- Provides investors with a secure means to save for a gold purchase and build up their savings over a period of time.
- Investors receive a discount of 30% on purchase of gold coins from the bank if purchased within 3 months of maturity of the deposit.
ICICI Bank Gold Monetization Scheme
This term deposit offering from ICICI Bank enables individuals to earn interest from their gold. Under this scheme, individuals can deposit their gold ornaments, bars, coins etc. with the bank and stand to earn interest on the same.
ICICI Bank Gold Monetization Scheme Features:
- Resident Indians can deposit gold in any form, which will be measured in grams with 995 purity for a set period of time. Investors will receive interest on their deposits based on rates as decided by the Government of India and RBI.
- The scheme, open to ICICI Bank account holders (either Savings or Current Account), requires a minimum of 30 grams of gold to be deposited for a minimum period of 3 years.
- Premature withdrawal would result in penal interest, and deposits can be maintained for a maximum of 15 years at a time.
- Interest will be paid out annually in Indian Rupees based on the gold rate at the time the deposit was opened.
ICICI Bank Gold Monetization Scheme Benefits:
- Allows investors to earn from their gold, while also ensuring the gold is secure.
- No income or capital gains tax payable even if the price of gold appreciates during the tenure of the deposit, making it a tax-free way to earn.
The Gold Monetization Scheme deposits can be of two types, as mentioned below:
|Features||Long Term Deposit||Medium Term Deposit||Short Term Deposit|
|Minimum amount||30 grams||30 grams||30 grams|
|Maximum amount||No limit||No limit||No limit|
|Tenure||12-15 years||5-7 years||1-3 years|
|Interest rate||2.50% p.a.||2.25% p.a.||N.A.|
Please note- the interest rates mentioned above are subject to change from time to time.
ICICI Bank Gold Loans
With the ICICI Bank gold loans, bank customers will be able to take out a loan against their gold. As per this scheme, the gold would serve as a security against repayment of the loan amount.
ICICI Bank Gold Loan Features:
- Instant gold loan against gold at any ICICI Bank branch.
- Loans from Rs. 10,000 to Rs. 10 lakhs available against gold and on submission of relevant documentation.
ICICI Bank Gold Loan Benefits:
- Ease of getting a loan.
- Short loan tenures of up to 12 months.
- Pledged gold kept in a secure facility until repayment.
ICICI Pure Gold
ICICI Bank offers its customers the chance to purchase pure gold as an investment option. Certified and assured by Assay, the bank offers 24 carat pure gold in a number of denominations to cater to every budget and need. Imported from Switzerland, the gold is of the purest quality, which is backed up by certifications issued with each purchase.
ICICI Bank Gold Features:
- The gold is sold through certain ICICI Bank branches across the country, complete with assurance certificates.
- The gold is available in denominations of 0.5 grams, 1 gram, 2.5 grams, 5 grams, 10 grams, 20 grams, 50 grams and 100 grams.
ICICI Bank Gold Benefits:
- Gold is sold in convenient tamper proof packs.
- Gold is priced competitively, with the cost covering the import cost as well as all duties and taxes associated with the sale.
ICICI Sovereign Gold Bonds
The Government of India issues sovereign gold bonds from time to time. These are government-issued securities that can be used as a substitute for physical gold, where all transactions are carried out in cash. These bonds are linked to the gold price and are issued through designated banks, post offices and agents. ICICI Bank is one such bank authorised to issue these bonds.
ICICI Sovereign Gold Bond Features:
- These bonds are issued for a minimum tenor of 8 years, with buyout options in the 5th, 6 or 7th year.
- The bonds issued come with a sovereign guarantee on the interest as well as the capital amount.
ICICI Sovereign Gold Bond Benefits:
- The bonds can be traded on the stock exchanges if the investor wishes for an early exit.
- The bonds, being issued by the government, carry a guarantee and assured returns.
- The bonds can be used as collateral when applying for a loan.
ICICI Bank has a number of options available for investors who wish to make investments in gold or build their portfolio through investing in gold and gold based assets. The various schemes have been tailored to suit every budget, making it possible for everyone to build their wealth through gold.