Gold Saving Scheme

  • Author: Saphi Evangelarity Syiem
  • 5 min read
  • December 7, 2022
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The gold saving scheme is? Do you want to find the greatest monthly savings plan with jewelers? A large number of individuals participate in gold-saving plans given by fine jewelry in India. People are particularly interested in these schemes since gold is a valuable metal and a part of our culture.

Gold-saving schemes from your jeweler are helpful when you wish to acquire gold for a special occasion, such as anniversaries or weddings. Schemes like these let you receive a discount on the manufacturing charges from specific jewelers. Individual schemes must be examined to determine if they are appropriate for you.

A jeweler’s gold deposit or savings program is a system in which you park your gold with the jeweler and earn more gold at the end of the year. Jewelers may also provide a monthly amount of payment and return your gold at the end of the period. The primary goal of this strategy is to mobilize gold, supply it through bank loans, minimize reliance on imported gold, and preserve foreign exchange. Different jewelers offer different gold-saving strategies. Some jewelers demand that you return your money in the form of jewelry.

A gold savings scheme, on the other hand, does not provide interest on the amount invested, unlike a recurring deposit plan. As a result, jewelers add a reward to the entire value deposited to make up for the interest deficiency. Most jewelers will either pay the last installment in cash or provide a reduction on the final installment.

Curious about saving schemes available in India, read here Saving Schemes in India.

But, firstly, should you invest in gold?

Investment in gold is similar to investment in any other financial vehicle that may build wealth over time. In the event of a financial catastrophe, uncontrolled inflation, or worldwide depression, gold is seen as a safe harbor asset.

Gold dealing is a profitable venture. Gold when manufactured turns into jewelry that can be put up for sale for a profit. Profits may be made simply by selling the precious metal. Gold is one of the most liquid types of money. If you need to liquidate it, you can do so quickly. Larger items, such as bars, may not be easily swapped to suit your financial needs. When the value of paper money falls, prospective investors buy gold. Consumers may purchase gold in two ways: physically and through different technological methods such as e-gold, gold futures, and so on. 

How do Jeweller’s Gold saving Schemes operate?

Jewelers offer a variety of gold-saving schemes:

  • Among the most popular schemes is when the jewelers request you to pay a specific sum each month for the duration of the plan. The jeweler adds another month’s installment to your account. Money amassed at the conclusion of the period must then be utilized to purchase gold jewelry from the jeweler at the current rate.
  • Some jewelers create plans where gold coins can be bought with the money you’ve invested. This plan does not allow for cash redemption.
  • Certain plans provide savings on making costs and waste, and in some cases, a total waiver.
  • Some jewelers provide fixed-weight plans in which you may specify how much gold you wish the jeweler to deposit into your account each month. In such instances, you must make monthly payments for the relevant amount of gold based on the existing gold value at the time of payment.

So, should you invest in these gold-saving schemes?

Assume you make a periodic deposit instead of purchasing gold. A recurrent deposit earns interest. Most jewelers will offer you a reduction on one of your installments to compensate for the loss. This makes up for the lack of interest. However, it should be noted that the money earned via the gold jewelry plan must be utilized solely for the goal of creating gold jewelry and not for any other reason. Gold biscuits or gold coins cannot be purchased. In any event, consider some of the most popular gold jewelry plans in the country.

  • Tanishq Golden Harvest Scheme: Tanishq’s Gold Harvest Scheme requires you to pay for ten months, after which the jeweler will grant you a discount ranging from 55 percent to 75 percent of its first installment. Customers can still receive the Golden Harvest proportional discount after completing 6 months and six installment payments. You might start by investing in tiny sums of Rs 2,000 and then in multiple sets of Rs 1,000. The plan will be closed 421 days after the account is opened. This is a common gold-saving scheme or method for jewelers. If a plan member retracts their contributions after 300 days or ten months, but before one year, he is liable for a rebate varying from 55 percent to 75 percent. For example, Joe invests Rs.3000 each month for ten months in the Tanishq Golden Harvest Scheme. He chooses to withdraw the whole deposit on the 301st day after settling all of the payments. As a result, he is entitled to a 55 percent reduction. As a result, the overall value of his reimbursement is Rs.31,650 [30,000 + (3000 x 55%)]. A significant benefit of this plan is that people can combine their redeemable value with any continuing Tanishq incentives to multiply their savings.
  • Malabar Gold and Diamonds SMART BUY: The Malabar Gold Smart Buy is one of the finest ways to save money on gold purchases, and it is a unique concept for buyers who may place an order for in-stock or out-of-stock jewelry. The consumer should prepare ahead of time, make the payment, and complete the procedure after the purchase has been executed. Your smart buy items will be shipped to the address you provide. This clever purchasing technique allows you to obtain several sorts of gold goods. Some of the benefits of this gold savings scheme include free gold upkeep for a lifetime, a complimentary year of insurance, and a gold repurchase assurance. Furthermore, this plan exclusively provides individuals with BIS Hallmarked 916 Gold. Consumers should also keep in mind this feature is only accessible for jewelry that does not require resizing. Customers can use the “Smart Buy + Customise” feature for jewelry that requires resizing.
  • Jos Alukkas’ Easy Buy Gold Purchase Plan: The Jos Alukkas has an “Easy Buy Plan” as well. This plan lasts 360 days and requires monthly payments ranging from Rs 1000 to Rs 1 lakh. However, the jewelry should be purchased via online stores and showrooms of Jos Alukkas. Jewelry purchases are permitted beyond thirty days of the final installment, but not before 360 days from the date of membership. Customers are also qualified for a discount of promotion  – the plan’s incentive – after making 12 installments. For instance, Ajay chooses to put a monthly investment of Rs.7000 in Jos Alukkas’ Easy Buy Gold Purchase Plan. As a result, after one year, his total deposit will be Rs.84,000 [7000 x 12]. Additionally, he also obtained a 90 percent promotion discount for the scheme solely on a single month’s payment. As a result, she earns Rs.6500 as a program promotion discount, which is applied to her total deposits.  As a result, the worth of gold he may buy with a deposit of Rs.84,000 is Rs.90,500.

Gold saving schemes By Banks

Did you know apart from the gold saving scheme offered by jewelers, banks also offer too?

Gold Schemes were launched in the Budget of 2015 to promote the saving or deposit of spare gold in financial institutions. This unused gold might be lent to jewelers or utilized for other reasons. The program requires the bank to pay interest to the depositor, and jewelers can borrow gold straight from banks. In this manner, our government may prevent expenditures on forex reserves needed for gold imports.

Gold schemes enable us to park, trade-in, or purchase gold. Narendra Modi, India’s Prime Minister, has unveiled three gold schemes:  the Gold Coin and Bullion Scheme, Sovereign Gold Bond Scheme, and the Gold Monetisation Scheme.

How does the Bank Gold Scheme work?

  • A depositor must first get authorization for the gold they wish to deposit. Approval can be received from authorized collecting locations, where the purity of the gold is verified. After that, the gold may be remitted.
  • The deposited gold is sent to refineries to be melted by the collecting centers. With only the client’s consent is this performed.
  • The collecting facilities issue a certificate for the gold deposited, which may subsequently be shown to the bank to form a Gold Savings Account.
  • The processors preserve this gold for a price agreed upon between them and the bank. Clients are not expected to pay any fees for this service.

The Highlights of Banks’ Gold Scheme

  • Banks’ Gold scheme allows for the depositing of a minimum of 30 grams of gold.
  • Gold can be deposited in a variety of forms, including coins, bars, and jewelry.
  • Gold may be examined and deposited at 331 collecting locations.
  • Short-term is for 1 year to 3 years, medium-term is for 5 years to 7 years, and long-term gold schemes are offered for 12 years to 15 years. Different tenures and interest rates are available.
  • You have the choice of breaking the lock-in period, but you will be penalized for doing so.
  • The interest rate is calculated based on the amount of gold deposited and is paid in rupees.
  • Banks determine interest rates on short-term gold deposits, whereas the government sets interest rates on medium- and long-term gold deposits.
  • Short-term deposits can be redeemed in cash or gold, whereas long-term and medium-term deposits can only be redeemed in cash.
  • Another advantage of a gold program is that the interest paid on the deposit is tax-free.
  • The bank is entitled to use the deposited gold in any way it sees fit, including Reserve bank of India Gold reserves, auctioning, and so on.
  • Gold that has been stored for a limited time might be lent to jewelers.
  • Jewelers can also create a Gold Metal Loan Account, which is valued in kilos of gold.

The Different Types of Bank Gold Schemes?

  • The Gold Monetisation Scheme (GMS): The Gold Monetisation Scheme was launched to supplant the current Gold Deposit Scheme (GDS) of 1999. Individual people, Hindu undivided families, and corporations, like Sebi-registered Mutual Funds and Exchange Traded Funds, can park gold at collecting or purity testing centers recognized by the Bureau of Indian Standards under the GMS. The deposit’s principal and interest are both denominated in gold. The deposit terms vary from short-term, which is 1 year to 3 years, medium-term which is 5 years to 7 years, and long-term which is 12 years to 15 years. There is a minimum period of lock-in for the gold deposit and can be removed early with a fine determined by the bank.
  • Sovereign Gold Bond Scheme: The Reserve Bank of India offers gold bonds on behalf of the government of India under the Sovereign Gold Bond Scheme. Gold bonds are denoted in multiples of grams, with 1g serving as the fundamental unit. Bonds can be held for up to 8 years, with a choice to depart in the fifth year. In one fiscal year, you can purchase a minimum of 2g of gold bonds and a max of 500g of gold bonds.
  • Gold Coin and Bullion Scheme: The government of India will first issue gold coins of 5g and 10g under the Gold Coin and Bullion Scheme, and eventually, 20g bars will be available. The coins would be the first national gold coins ever released with the Ashok Chakra etched on them.


However, before embarking on the gold craze, consumers must carefully assess their financial situation, accessibility, and investing goals. Because a gold savings scheme strategy may necessitate a substantial investment, good preparation is required.

But if you are looking for an investment vehicle that doesn’t require a substantial investment, then real estate is the best option for you. But, wait, isn’t real estate investment and particularly commercial real estate pricey to invest in? After all, commercial properties are valued in crores and you would require deep pockets to invest in one. W-R-O-N-G! Via fractional ownership, you can invest in grade-A commercial properties like office spaces with a minimum of Rs. 25 lacs through reliable platforms like Assetmonk. Time to get started, don’t you think?

Gold Saving Scheme FAQs

Gold coins, bars, and jewelry can all be parked.

Yes, you may, but there will be an imposition of a fine.

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