The Lowdown On Gold Savings Schemes

By BankBazaar | November 19, 2018

Is gold your go-to gift for every occasion? Then, you will surely dig these gold savings schemes that might help you save a tidy sum.

The Lowdown On Gold Savings' Schemes

It is an open secret that people in India covet gold. The yearning for this precious metal has led to awful wars, shocking estrangements, frightful family feuds and scandalous break-ups. It is no surprise that even today no wedding in India is complete without this yellow metal. It is placed way above Fixed Deposits, Mutual Funds and any other assets that one might have.

If your love for gold is sacrosanct, then we are sure you would like to know how you can save some money when you get that precious metal home. Typically, you might be buying gold jewellery which involves making charges, wastage and other frivolous fees. Gold savings schemes offered by jewellers across the country can help you save some quick bucks.

How Do Gold Savings Schemes Work?

There are two types. One is where you deposit a specific amount every month for a chosen tenure. At the end of the period, you get to buy gold jewellery for that amount plus a bonus amount given by the jeweller. Under this scheme, you will be buying jewellery at the gold rate as on the day of maturity of the scheme. The advantage is that the jeweller will allow you to purchase jewellery without any making charges or wastage.

Additional Reading: How To Invest In Gold Through ETF

Another scheme is where you pay monthly instalments and you will be able to purchase gold for that amount on maturity. The advantage is that the jeweller will provide you protection against rising gold rate by locking in the gold rate that is prevailing when you start making the payments.

Here are some of the most sought-after schemes that you might want to mull over:

GRT Golden Eleven Flexi Plan

GRT allows you to select an amount of your choice as monthly advance payment. They provide various slabs starting from Rs. 500. You will also get a passbook to keep track of your payments. You have to pay eleven equal monthly advance payments. After making the advance payment for the last month, you can buy your jewellery without wastage/value addition (VA) charges.

GRT gives customers the option to save based on either the value of the jewellery or weight of the jewellery. However, special items like diamond, platinum, ruby, emerald, ethnic and vintage jewellery are excluded from the scheme.

Tanishq Golden Harvest/Swarnanidhi Scheme

Tanishq’s Swarnanidhi is for a tenure of 8 months. The minimum instalment for the scheme is Rs. 3,000. This scheme provides you protection from a possible increase in gold rates. How? Tanishq will book the corresponding gold grams in 22 karats for you by taking into account the gold rate on the date of payment. When you redeem, the fixed grams will be multiplied by the prevalent gold rate and a credit note will be generated with which you can buy jewellery only from Tanishq stores.

Under Tanishq’s Golden Harvest scheme, you get to choose between two tenures – 6 months and 10 months. For both the schemes, the minimum instalment is Rs. 2,000.

For the 10 months scheme, the discount will be 55%-75% of one month’s instalment. You will have to redeem the amount within 390 days from the date you enrolled for the scheme. For the 6 months scheme, the discount will be 20% of one month’s instalment. You will have to redeem the amount within 240 days from the date you enrolled for the scheme. You can use your Debit or Credit Card, net banking, cash or ACH for making payments.

Additional Reading: Tips To Buy Gold This Akshaya Tritiya

Malabar Gold Smart Buy

Unlike other gold schemes, Malabar Gold and Diamonds gives discounts to customers for placing orders for any jewellery design in advance. This will include products that are ‘In Stock’ or ‘Out of Stock’ but can be manufactured on request. The Smart Buy scheme is available on select products on Malabar Gold and Diamond’s website. Products like earrings, pendants, nose pins & necklaces which does not require sizing will come with the Smart Buy option. Some products will have Smart Buy plus customise option.

You will have to make an upfront payment to complete this gold purchase process. The jewellery will be delivered at a later date.

Jos Alukkas Easy Buy Gold Plan

This scheme from Jos Alukkas is an online gold scheme where you can choose from instalments of Rs. 1,000, Rs. 2,000, Rs. 5,000 or Rs. 10,000. On regular remittance of 12 monthly installments, you can purchase jewellery and will be eligible for the scheme promotion discount. The discount is usually up to 90% of one month’s instalment. You will be given an enrolment number after the first installment is paid.

All payments for the scheme have to be made online. You can pay using your Debit Card, Credit Card or net banking account. It is mandatory to pay one installment every month.

You can purchase jewellery on maturity from either the Jos Alukkas website or any Jos Alukkas showroom. Purchases can be made either 30 days after the last installment or 360 days post the date of joining.

Additional Reading: Is Now The Right Time To Be Buying Physical Gold And Silver?

A Word Of Caution…

These schemes do not come under the purview of any of the government regulations. There is still a lot of debate on whether these schemes will be termed as Public deposits or Ponzi schemes. So, it is prudent to choose reputed sellers. Also, keep all your documents handy in case there are any issues with redemption.

The best way to buy gold is by saving up via Fixed Deposits or Mutual Funds. Also, it is better to buy gold bars and coins which can be exchanged for jewellery later. This will help you get the maximum out of your gold purchase without having to pay wastage or making charges.

Ready to save up for those golden purchases? A range of Mutual Funds is right here!

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Category: Money Management

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