Money making tip: This SBI gold deposit scheme helps you earn interest like a fixed deposit

There is a special place and massive desire to possess gold in almost every Indian heart. India is by far the major consumer of gold across the world. So, whether it is a religious occasion, wedding, or while planning children’s marriage, the yellow metal plays an important role, both as jewellery and investment. However, it would not be wrong to say, that every buying of gold also results in the investment lying idle in an almirah somewhere. It is no mystery that, nobody buys gold to sell it but in fact intends to store it and pass it on to their next generation and that too in jewellery format. But how would you feel, if you can use your idle gold and actually make money from them. Shocking? Yes! This is the exact chance the largest lender State Bank of India (SBI) is offering to its customers. SBI in its Revamped Gold Deposit Scheme, allows citizens to earn between 0.50% to maximum 2.50% interest rate depending upon the tenure you decide to keep your gold. 

On its website, SBI says, “Revamped Gold Deposit Scheme (R- GDS) is in the nature of a fixed deposit in gold. The customers can deposit their idle gold under R- GDS which will provide them safety, interest earnings and a lot more.”

Purpose behind this scheme is to mobilize the idle gold in the country and put it into productive use. Also to provide the customers an opportunity to earn interest income on their idle gold holdings.

Any individuals singly or jointly (as Former or Survivor), Proprietorship & Partnership firms, HUFs, trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations and companies are eligible for this scheme. 

Notably, minimum 30 grams of gold in gross can be deposited, however, there is no maximum limit. 

At SBI, gold is accepted in the form of raw gold i.e. Gold bars, Coins, Jewellery excluding stones and other metals. Customers to submit Application Form, Identification Proof, Address Proof and Inventory Form.

There are three types of tenure available in this SBI gold scheme. 
1. Short Term Bank Deposit (STBD): Tenure 1 to 3 years

Non-Cumulative (on 31st March) every year or Cumulative (On Maturity) interest on maturity. The principal and interest on STBD shall be denominated in gold. On maturity Interest for broken period will also be paid. 

If gold deposited for one year, will get 0.50% interest rate, while above 1 year up to 2 years will get 0.55% rate and above 2 years up till 3 years will enjoy 0.60% rate. 

2. Medium Term Government Deposit (MTGD): Tenure: 5-7 years. Here, a customer will enjoy interest rate of 2.25% per annum. 

3. Long Term Government Deposit (LTGD): Tenure 12-15 years. Here, a person can earn up to 2.50% rate annually on their gold deposits. 

In the case of MTGD & LTGD, the principal will be denominated in gold. However, the interest shall be paid in Rupees annually on 31st March or 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.

Depositor will have 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.