Gold Saving Schemes in India

When you look at the returns gold has given over the years, you can see how it has proven itself as a star investment:

• 11% p.a = Over the last 25 years,
• 15% p.a = Over the last 5 years, and
• 16% p.a = Over the last year.

Astounding, right? The asset has already reached its record high of ₹67,000 this year and is expected to further soar to ₹70,000 in the next few months.

Now that we’ve established gold as a great asset, it is no surprise that gold investment is a wonderful option for investors. In that direction, we will cover different gold-saving schemes in India.

Gold saving schemes have been an integral part of gold investments in India for several years. With the advent of modern technology, gold saving schemes have evolved to grant investors extra benefits - be it returns, flexibility or discounts.

Popular Gold-Saving Schemes in India

Generally, gold saving schemes are divided into three main categories, one of which is a new addition to the sector:

a. Jeweller Gold Saving Schemes: Invest a fixed amount monthly to a jeweller and redeem the accumulated sum in gold ornaments at maturity.

b. Digital Gold Saving Schemes: Investing a fixed amount via digital websites or apps and getting hefty returns.

c. Bank Gold Saving Schemes: These can be further divided into two categories, which are discussed in the article.

Without further ado, let’s see which of the schemes make the list:

1. Jos Alukkas’ Easy Buy Gold Saving Schemes

This gold-saving scheme is part of the traditional jeweller's gold-saving schemes. Here’s how this gold investment plan goes:

• Investors pay monthly instalments for a certain period, say 12 months.
• At the end of 12 months, they purchase a gold item with the total accumulated amount.

This scheme is a popular choice among jewellery lovers, and its instalments range from ₹1000 to ₹1 lakh. At the end of 12 months, investors also get discounts on gold that they buy as a price for being invested in the scheme.

2. Gullak Gold+ Gold Saving Schemes

Gullak Gold+ is an innovative gold-saving scheme where investors can buy and lease their gold on Gullak’s app. The gold is leased to India’s largest jewellers (with more than ₹25,000 Cr. annual turnover and 15+ years of experience in the market), and these jewellers give an extra 5% gold every year to the investors.

For example, if you invest 100 gms in Gullak Gold+, you'll have 105 gms by the end of 1st year, 110.25 gms by the end of 2nd year and 148 grams in 8 years. Sounds amazing, right?

On top of this, investors also get the benefit from gold price appreciation. A 100% bank guarantee is also provided to safeguard investments during the lease tenure. The investments are withdrawable at any time, and investors can either make SIPs or one-time investments.

Investors can withdraw investments in cash, order gold coins from Gullak or buy jewellery of equal value to their investments from Gullak’s partner stores like Caratlane.

Interestingly, Gold+ beats returns from all gold schemes in India.

3. Bank-Provided Gold Saving Schemes (Gold Monetisation Scheme)

Bank-provided gold investment plans or Gold Monetisation Scheme (GMS) is a gold scheme that provides extra returns on your idle gold (gold that you already have at home).

There are 3 deposit schemes: short-term, medium-term and long-term. The returns and lock-in periods vary depending on the same. Returns range from 0.8% to 2.5% across 3-15 years long lock-in periods. (The returns are also dependent on the lock-in period.)

The extra returns are provided in INR on top of the principal amount (value of gold during the start of the tenure), and there are penalty charges for early withdrawal. Deposits for this scheme start at a minimum of 10 gm.

A Final Thought on Gold Saving Schemes

With multiple gold investment plans arriving every year, we need to be aware of opportunities that’d help in doubling down on gold investments. Gullak Gold+, easy gold schemes and gold monetisation schemes are examples of such gold-saving schemes.

However, it is crucial to do personal research before making investment decisions to maximise profits and minimise risks.