- Webpages
- Documents
- HDFC Life ClassicAssure PlusInvestment
- HDFC Life ClassicAssure PlusInvestment
- HDFC Life ClassicAssure PlusInvestment
For NRI Customers
(To Buy a Policy)
-
![Contact Image]()
Call (All Days, Local charges apply)
-
![Contact Image]()
Email ID
-
![Contact Image]()
Whatsapp
(If you're our existing customer)
-
![Contact Image]()
Call (Mon-Sat, 10am-9pm IST, Local Charges Apply)
-
![Contact Image]()
Email ID
For Online Policy Purchase
(New and Ongoing Applications)
-
![Contact Image]()
Call (All Days & Toll free)
-
![Contact Image]()
Schedule a call
-
![Contact Image]()
Whatsapp
-
![Contact Image]()
Give missed call to buy a policy
-
![Contact Image]()
Email
Branch Locator
-
![Contact Image]()
Locate a branch
For Existing Customers
(Issued Policy)
-
![Contact Image]()
Whatsapp
-
![Contact Image]()
Call (Mon to Sat, from 10 am to 7 pm, Call charges apply)
-
![Contact Image]()
Email
Fund Performance Check
-
![Contact Image]()
Call (Missed Call)
Gold Savings Scheme
Investors are constantly on the lookout for avenues that offer moderate risk and steady returns in today’s volatile market conditions. Gold saving schemes have emerged as a popular choice for individuals in India seeking stability and long-term financial growth. In this article, we will explore the best gold saving schemes in India, their features and benefits, and their importance in the Indian investment landscape.
:1800-266-9777
Gold Savings Scheme
Table of Content
What is a Gold Savings Scheme?
A gold savings scheme is a financial instrument that aims to facilitate systematic savings in gold by making regular contributions but, instead of earning interest, the goal is to accumulate funds to purchase gold. These schemes are typically offered by banks, financial institutions, and jewellery retailers. These plans allow individuals to make regular monthly deposits for a set period.
Gold savings schemes offer a convenient way to invest in gold without having to purchase physical gold. Instead, the investment is made in gold units, which are equivalent to a certain amount of physical gold. The gold units are then stored in a demat form, eliminating the need for physical storage. At the end of the tenure, the accumulated amount can be used to buy gold from the associated jeweller, with the value equivalent to the total deposits made.
However, unlike traditional saving schemes, gold savings schemes forego offering interest on deposited amounts. To compensate for this, jewellers often provide a bonus or incentive, such as paying the final instalment or offering a discount, to make up for the lack of interest earnings.
For example, consider a scheme offered by a jeweller named Tanishq. In this scheme, individuals can invest in gold through regular deposits.
Deposit Amount: Rs. 5,000 per month
Deposit Tenure: 12 months
Discount on Final Deposit: 85%
Under this scheme, if Ms. Priyanka decides to participate:
Total Deposits: She will make 12 monthly deposits of Rs. 5,000 each, amounting to Rs. (5,000 x 12) = Rs. 60,000.
Discounted Final Deposit: On the final deposit, she will receive a discount of 5%, effectively paying Rs. (5,000 x 15/100) = Rs. 750.
Effective Investment: The total investment Priyanka makes will be Rs. (60,000 + 750) = Rs. 60,750.
At the end of the tenure, Priyanka will be eligible to purchase gold worth Rs. 65,000 by only investing Rs. 60,750.
This scheme allows for systematic saving in smaller amounts while achieving the ultimate goal of acquiring gold at a slightly discounted rate. It combines the benefits of a recurring deposit plan with the advantage of purchasing a physical asset like gold.
Features & Benefits of Gold Schemes
Gold savings schemes offer several features and benefits:
- The duration of the deposit can be 3, 4, or 5 years.
- Gold in various forms, such as bars, coins, or jewellery, can be deposited.
- Upon melting, assaying, and minting the gold, a Gold Deposit Certificate will be issued by the Nodal Branch of the Indian Government.
- The Gold Deposit Certificate will be issued within 90 days of the deposit.
- Each individual can hold a maximum of 5 such certificates.
- The minimum investment to start is 500 grams, and there is no maximum limit.
- Single-name nomination facility is available for depositors.
- Scheme transfer can be done through endorsement or delivery, with notification required at the Nodal Branch.
- At maturity, the principal amount or equivalent gold as per the applicable rate can be repaid.
- The scheme can be renewed after maturity.
- Premature withdrawal is allowed after the 1-year lock-in period, with a penalty applicable.
- A loan of up to 75% of the notional value of gold can be availed at any SBI branch.
- Tax benefits are available under Income Tax, Capital Gains Tax, and Wealth Tax for this scheme.
Importance of Gold Saving Schemes in India
Gold has traditionally been a popular investment option in India, and gold saving schemes offer a convenient and flexible way to invest in gold. However, purchasing gold in one instalment may not be feasible for everyone due to its high cost. These schemes serve as a means of saving for a specific purpose such as buying gold in the form of jewellery or bullion.
Given that the scheme involves depositing a smaller monthly amount rather than a large lump sum, it is particularly popular among individuals with regular income. The schemes not only make purchasing gold more affordable but also simpler.
Eligibility Criteria for Gold Savings Scheme
The eligibility criteria for gold savings schemes vary depending on the scheme, but generally, to qualify for a gold savings scheme, the following conditions must be met:
- You must be a resident of India.
- You have to be a member of a HUF (Hindu Undivided Family).
- This scheme is available to trusts, companies, and individuals.
How Do Indian Banks’ Gold Schemes Work?
Indian Banks, as well as, jewellers, offer gold schemes that operate differently. However, here is how the gold schemes typically work:
- The first step is to certify the purity of gold. The authorised collecting locations verify the purity of gold and then approve the deposit.
- The gold is then sent to refineries and melted after obtaining the customer’s consent.
- The collecting centers issue a certificate of gold deposit. Customers present this certificate at the bank to open a gold savings account.
- The refineries take custody of the gold at a price pre-determined between them and the bank.
- Short-term gold deposits can be redeemed in gold or cash. However, long-term deposits can be redeemed in cash only.
Factors To Consider Before Investing in Gold-Saving Schemes
The factors to consider before investing in gold saving schemes are:
- Assess your investment goal and check if the minimum contribution to realise your goal is within your budget.
- Popular players in the market offer lower discounts. Understand the credibility of these players/bankers. Do thorough research and look for average players who offer better discounts and interest.
- Before investing, you must check the credibility of the jewellers/banks.
- If the investment is to meet emergency fund requirements, choose a scheme that permits premature withdrawal with low or nil penalty.
Conclusion
Gold saving schemes provide individuals with a modest risk investment opportunity that combines the stability of gold with regular savings. Gold schemes offer a disciplined approach to saving through installment payments, making it an attractive investment option for individuals looking to build a corpus of gold or capitalize on the appreciation in gold prices. Similarly, life insurance policies provide a disciplined approach to financial planning, ensuring that individuals can secure their family’s future through regular premium payments.
By exploring the features, benefits, and eligibility criteria of popular gold schemes in India, alongside life insurance plans, individuals can diversify their investment portfolio aligned with their financial goals and risk appetite. Diversifying investments- a combined strategy allows investors to take advantage of the benefits of investing in gold while also ensuring the financial security and protection that life insurance offers. Integrating both gold saving schemes and life insurance into a comprehensive financial plan can help individuals achieve a balanced and secure financial future.
FAQs on the Gold Saving Scheme
1. What is the 6-month gold scheme?
A 6-month gold scheme allows a deposit of money regularly for 6 months. This deposit can be utilised for jewellery purchases on maturity. Special discounts are allowed on the purchase depending on the amount of deposit.
2. What is the Government gold saving scheme?
The government gold saving scheme is the Sovereign Gold Bond (SGB). It is a series of gold bonds denominated in grams of gold. The RBI manages the scheme on behalf of the government. The investors get a fixed annual interest, which is paid out twice a year. The tenure is eight years and can be prematurely withdrawn after five years. You can purchase SGBs from designated bank branches.
3. How is the value of gold calculated in the scheme?
The value of the gold in the scheme depends on the purity of the gold. The gold is multiplied by the INR value of gold prevailing on the date of maturity. The RBI reference rate for GOLD-USD London AM FIX, USD-INR rate, and the existing customs duty for import of gold are all considered while calculating gold value.
4. Is a minimum or maximum amount required to participate in a Gold Savings Scheme?
The minimum amount for the gold savings scheme is Rs. 1000. However, there is no maximum limit for the gold savings scheme, unlike the Sovereign Gold Bond and the Gold Monetisation Scheme.
5. Who should invest in gold-saving schemes?
Gold saving schemes are suitable for individuals who aim to build a gold portfolio gradually while ensuring a disciplined savings approach. It appeals to both short-term and long-term investors seeking moderate risk and stability.
6. Which is the best gold-saving scheme in India?
The best gold-saving scheme in India depends on individual investment goals and needs. It is important to research and compare the schemes before investing.
7. Are gold schemes beneficial or risky?
Gold schemes are relatively low-risk investments, as they offer stability and the potential for long-term wealth creation. However, investors should carefully evaluate the scheme's credibility, terms, and conditions before investing to ensure a secure and profitable experience.
8. Which gold scheme is best for long-term investment?
The best gold scheme for long-term investment depends on individual investment goals and needs. It is crucial to conduct research and evaluate the plans before making any investments.
9. What forms of gold can be deposited with the scheme?
Gold savings schemes usually allow individuals to invest in gold units, which are equivalent to a certain amount of physical gold. Some schemes typically accept various forms of gold, including gold jewellery, gold bars, gold coins, or gold biscuits. However, the specific forms accepted may vary depending on the scheme's terms and conditions.
Related Articles
- Gold Investment Plan in India
- How Do I Invest in Gold Through SIP?
- Everything You Need to Know About Gold Investment in India
- Monthly Income Schemes
- Importance of Savings
References:
https://groww.in/p/savings-schemes/gold-savings-scheme
https://www.forbes.com/advisor/in/investing/gold/gold-savings-scheme/
https://upstox.com/saving-schemes/gold-savings-schemes-offered-by-banks-and-jewellery/
https://blog.shoonya.com/gold-savings-scheme/#4-kalyan-jewellers-yearly-gold-savings-scheme-
Not sure which insurance to buy?
Talk to an
Advisor right away
Advisor right away
We help you to choose best insurance plan based on your needs
Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
Written By:
Vishal Subharwal
Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.
Reviewed By:
Here's all you should know about Saving Investments
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
Popular Searches
- Best Investment Plans
- What is Term Insurance
- Short term Investment options
- Saving plans
- ULIP Plan
- Health Plans
- Child Insurance Plans
- Group Insurance Plans
- Long Term Savings Plan
- Fixed Maturity Plan
- Monthly Income Advantage Plan
- Pension Calculator
- BMI Calculator
- Compound Interest Calculator
- Term insurance Calculator
- Tax Savings Investment Options
- 2 crore term insurance
- 50 lakhs term insurance
- annuity plans
- Investment Calculator
- get pension of 30000 per month
- ULIP Returns in 5 Years
- investment plan for 5 years
- investment plan for 10 years
- 50-Lakh Investment Plan
- guaranteed returns plans
- sanchay plans
- Pension plans
- 1 Crore Term Insurance
- Zero Cost Term Insurance
NOTE- This article is for information purpose only and not intended to provide any investment, legal, tax, accounting or financial advice. The reader(s) should rely solely upon their own independent judgments, assumptions, experience and knowledge with respect to any particular decision.
ARN - ED/10/24/17065
