Banks Gold Deposit Schemes


Banks Gold Deposit Schemes
Featurers of the Scheme  Monthly payment against the gold deposited by you and return of equivalent gold at end of the term is one type of GDS; another GDS variant will get extra gold back – more than your deposit if you leave it with them for fixed duration, with no monthly payment. Also, if gold value increases over the period, your gold is more valuable at the end of the term. GDS is a way to put your idle gold to work and also not have to worry about its safe keeping. But, do these two benefits really work? If you give BIS hallmarked coin or bullion and in return get gold bar without any certification, you are not guaranteed of its purity. What if the small jeweller’s shop is shut down? Your gold is more unsafe than what you could have achieved by putting it in bank locker.   You don’t have to worry about safe keeping it at your home or locker. The gold will become part of Indian mint for the duration of deposit.
• •No worry of default as SBI deposit in an Indian mint can be trusted.   You will not get your jewellery back in the same form. This is because gold is melted and reused. There will be some difference in weight calculation in the process. The gold is returned back in bar/bullion or equivalent cash. If you deposit in bar or bullion, the scheme is more beneficial. There could still be a small loss due to weight calculation as per Indian Mint. SBI melts the deposited gold to check the purity and then converts it into bars. Depending on the results, SBI sends a gold deposit certificate within  90 days. The bankbears all expenses associated with this process.
Matuity Period 6 months to  7 years 
Eligible Investors  SEBIRegistered MF, Exchange Traded Funds
Minimum Investment  500 gms no maximum limit
Interest SBI  0.75% for 3 years and 1% each for 4th and 5th years. Interest Calculated on gold terms 
Tax Benefits  The interest from this deposit is tax-free. Also, there is no wealth tax for the duration of deposit which is beneficial for high net worth individuals (HNI).


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