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      Gold Saving Scheme -Which Monthly Gold Scheme is Best?

      • 5 min read
      • Last Modified Date: April 5, 2024
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      • The gold saving scheme is? Do you want to invest in gold schemes in India? Do you want to find the greatest monthly savings plan with jewelers. Welcome to the world of Gold Investment, where you can unlock a strategic and efficient approach to investing in gold. 
      • These gold saving plans provide you with a structured way to build your gold portfolio, offering convenience, flexibility, and the potential for long-term wealth accumulation.
      • In this introduction, we’ll delve into the key aspects of Gold saving schemes in India. We will also see the best gold saving schemes in India.

      Why 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. 

      What are Gold Saving Schemes?

      • Gold saving schemes or gold-saving plans in India are structured investment plans that allow individuals to gradually accumulate gold over a period of time through regular contributions. 
      • These schemes are offered by various banks, financial institutions, and jewelers. 
      • Participants make regular payments, often on a monthly basis, and these contributions are used to purchase gold at prevailing prices.
      • Gold saving schemes provide an accessible and disciplined way for individuals to invest in gold, which is considered a valuable asset for wealth preservation and diversification. 
      • Gold scheme plans often offer added benefits such as discounts, waivers on making charges, and special incentives upon maturity. They are particularly popular among individuals who may not have the means to make a lump-sum gold purchase or who prefer a systematic approach to gold investment.
      • It’s important to carefully review the terms and conditions of gold scheme plans before enrolling to understand factors such as the lock-in period, payment schedule, applicable charges, and the final method of receiving the accumulated gold or its equivalent value.

      How do Jeweller’s Gold Saving Schemes operate?

      Jewelers offer a variety of gold purchase schemes:

      • Among the most popular gold purchase 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 gold purchase schemes 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.

      The Best Gold Investment – Which Monthly Gold Scheme is Best?

      Looking to invest in the best gold investment? Below are some of the most popular gold jewelry plans or gold monthly schemes in the country.

      • Tanishq Golden Harvest Scheme: Tanishq’s Gold Harvest Scheme is the best gold investment. It 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 also the best gold investment. It is among 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. That’s what makes it one of the best gold investment.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 chose 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.

      Banks’ Gold Saving Schemes 

      Did you know that banks also offer gold-saving schemes, apart from those provided by jewelers? Gold schemes were introduced in the Budget 2015 to help individuals save or deposit their unused gold in financial institutions. This dormant gold can get lent to jewelers or utilized for various purposes. 

      Under this initiative, banks are required to make interest payments to depositors, while jewelers can directly borrow gold from banks. This approach helps the government reduce expenses related to forex reserves necessary for imports of gold. Gold schemes offer the opportunity to park, trade, or buy gold. 

      There are three prominent gold schemes. These are the Gold Coin and Bullion Scheme, the Sovereign Gold Bond Scheme, & the Gold Monetisation Scheme. These initiatives aim to provide individuals with versatile options to engage with gold as an asset, fostering financial stability and growth.

      How does the Bank Gold Scheme work?

      • Before depositing gold, a depositor needs to obtain authorization. This authorization can be obtained from designated collection centers where the purity of the gold is meticulously verified. Once authorized, the gold can be sent for remittance.
      • Subsequently, the collected gold is sent to refineries, where authorized collection centers oversee the melting process. This procedure is carried out solely with the consent of the client.
      • Upon completion of the process, the collecting centers issue a certificate validating the deposited gold. This certificate can then be presented to the bank to establish a Gold Savings Account, allowing the depositor to securely store their gold.
      • The refining facilities store the gold for a mutually agreed-upon fee set between the facility and the bank. Notably, clients are not required to pay any additional charges for this service, making it a convenient and cost-effective option.

      The Highlights of Banks’ Gold Scheme

      • Banks’ Gold scheme or gold monthly 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 is the best gold scheme. It 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: This is another best gold schemes in India. 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.

      Difference between 22k and 24k Gold

      Understanding the disparity between 22k and 24k gold is crucial when contemplating gold investments or jewelry purchases. These variations in karatage can significantly impact your choice based on purity, durability, and intended use. In this guide, we delve into the differences between 22k and 24k gold, providing valuable insights to help you make well-informed decisions.

      Karat Meaning

      Karat, denoted as “k,” is the measure of gold purity. If the karat value is high, the greater the gold’s purity. Gold purity is rated from 0 to 24, with 24k gold being the purest available.

      Pure gold is very soft in its natural state. To enhance its strength and suitability for jewelry, it is alloyed with other metals like palladium, silver, nickel, or copper. In essence, karat can also represent the ratio of gold to other metals.

      Understanding 22K Gold

      22 karat gold is composed of 22 parts of gold blended with two parts of various metals or alloys like zinc, nickel, silver, and copper. This type of gold, often referred to as 916 gold, contains 91.67% pure gold. 

      Its texture is notably harder and more resilient when compared to 24k gold, thanks to the presence of these trace metal components. As a result, 22k gold is widely favored for the creation of exquisite jewelry pieces.

      Understanding 24K Gold

      24-karat gold, commonly known as pure gold, comprises 99.99% pure gold. It’s essential to understand that there is no gold purity level higher than 24k. While it represents the highest purity, it isn’t entirely pure because pure gold is too soft to maintain its form at room temperature. As a result, the ore undergoes extraction and processing until it achieves a remarkable purity level of 99.99%.

      The price of 24k gold in India experiences daily fluctuations. Due to its unmatched purity, it tends to be more expensive than 22k or 18k gold. Consequently, 24k gold is best suited for investment purposes rather than for crafting jewelry, given its delicate nature.

      22k Vs 24k Gold 

      Aspects22K Gold24K Gold
      PurposeBest for crafting jewelry due to the presence of other metals, which enhance durabilityBest for investment due to its soft nature
      Purity91.67% gold99.9% gold
      UsageUtilized in jewelry and coin productionEmployed in electrical and medical devices that necessitate the use of pure 24k gold 
      Durability The inclusion of other metals in 22k gold enhances its durability, making it more suitable for crafting jewelry.24k gold boasts a brilliant color but lacks the durability needed for jewelry; it is too soft to withstand the rigors of wear and tear.
      PriceTypically less expensive than 22k gold24k gold commands the highest price

      24K vs. 22K – The Best Investment Option?

      Gold is acquired for various purposes in India, including investment, emergency funds diversification, and jewelry crafting. When it comes to investment, 24k gold stands out as the top choice due to its remarkable purity of 99.9%. 

      Although it may lack durability and is prone to scratching, 24k gold holds a higher intrinsic value compared to 22k gold, which contains only gold of 91.67%. 

      When purchasing a 24k gold coin or bar, it is essential to verify its hallmark certification for purity. Additionally, it is advisable to procure gold from BIS-hallmarked jewelers to ensure accurate valuation when selling.

      22k Vs 24k- Which Is Ideal for Jewellery?

      When it comes to creating jewelry, 22k gold emerges as the preferred choice. This preference stems from the fact that 24k gold, in its pure form, is exceptionally malleable and soft, rendering jewelry made from it delicate and prone to breakage. 

      In contrast, 22k gold stands out as an excellent option for crafting jewelry due to its alloy composition, which includes metals like zinc, copper, and silver, enhancing its durability compared to 24k gold. Moreover, selecting 22k gold jewelry can lead to a more favorable resale value.

      Additionally, the choice between these gold types should consider the type of jewelry and its intricacy. For everyday wear or intricate designs, individuals may opt for 14k or 18k gold, as even 22k gold can sometimes be too soft to securely hold gemstones.


      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? One of the trending and best investment avenues right now is real estate structured debt with just Rs. 10 lacs through reliable alternative investment platforms like Assetmonk. It offers an assured IRR of 17 percent. Time to get started, don’t you think?

      Related Articles

      1. Saving Schemes In India.
      2. Best Investment Options in India to get Higher Returns


      Q1. What kind of gold can be deposited as part of the scheme?

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

      Q2. Can I get out of the lock-in period?

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

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