SBI Gold Deposit Scheme: Safe investment, park idle gold here, earn interest too - All you need to know
SBI Gold Deposit Scheme: If you have idle gold then you can earn interest by depositing them with the bank instead of keeping at home and at the same time you gain from the appreciation of the yellow metal over time.
Revamped SBI Gold Deposit Scheme: If you have idle gold then you can earn interest by depositing them with the bank instead of keeping at home and at the same time you gain from the appreciation of the yellow metal over time. This scheme is like a fixed deposit, which you keep in gold. The investment is safe and offers you interest on deposit, and other benefits. If you keep your gold with a bank, there is no need to worry about theft. One can invest in SBI's revamped gold deposit scheme. An investor can deposit idle gold for various periods - short-term, medium-term, and long-term.
Under the SBI gold deposit scheme, one has to invest at least 30 grams of the yellow metal. There is no maximum cap on the maximum deposit limit.
SBI Gold Deposit Scheme features:
1. Under the scheme, an investor can mobilise the idle gold into productive use.
2. The scheme provides the customers an opportunity to earn interest income on their idle gold holdings.
Eligibility to make a deposit:
Individuals, singly or jointly proprietorship and partnership firms, HUFs, trusts including mutual funds/exchange traded funds registered under SEBI (Mutual Fund) Regulations, companies, charitable institutions, central government, state government or any other entity owned by the central government or state governments.
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SBI gold deposit scheme durations:
Short-term bank deposit (STBD): 1 to 3 years
Medium-term government deposit (MTGD): 5-7 years. This deposit will be accepted by the bank on behalf of central government.
Long-term government deposit (LTGD): 12-15 years. The deposit will be accepted by the bank on behalf of central government.
An investor can also deposit gold for a broken period.
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Interest rate and payment:
The current interest rates are:
For 1 year: 0.50 percent per annum.
Above 1 year and up to 2 years: 0.55 percent per annum.
Above 2 years and up to 3 years: 0.60 percent per annum.
Non-cumulative interest on March 1 every year and cumulative interest on maturity will be paid. The principal and interest on STBD will be denominated in gold. On maturity interest for broken period will also be paid.
For MTGD: 2.25 percent per annum
For MTGD: 2.50 percent per annum
In case of MTGD and LTGD, the principal will be denominated in gold. However, the interest will be paid in rupees annually on March 31 and cumulative interest on maturity. Broken-period interest is paid at the time of maturity. Interest is calculated on gold value in rupees, at the time of deposit.
Depositors will have an option to receive payment of simple interest annually or cumulative interest (compounding annually) on maturity. The option to be exercised at the time of deposit.
Gold is accepted in the form of raw gold - gold bars, coins, jewellery excluding stones and other metals. The customers have to submit application form, identification proof, address proof and inventory form.
Gold deposit certificate:
Gold Deposit Certificate will be issued by Nodal Branch (Bullion Branch, Mumbai). The certificate will be issued for pure gold contents.