If you have gold and you are worried about its safety, then you can deposit it in the bank. Under the Revamped Gold Deposit Scheme of State Bank of India (SBI), you can get your gold or gold ornaments FD in the bank. Due to this gold is also safe and interest is also earned on it. We are telling you about this scheme.
It has 3 categories
Under this scheme, SBI has created three types of categories. In the first category, gold is deposited for 1-3 years. This is called Short Term Bank Deposit (STBD). The second category is called Medium Term Government Deposit (MTGD), which has a maturity period of 5-7 years. On the other hand, gold deposits can be made for 12-15 years under the Long Term Government Deposit (LTGD) category.
How much interest do you get?
0.50% interest is offered on FD for one year under the Short Term Bank Deposit (STBD) category. Whereas, for FDs of two years and three years, 0.55% and 0.60% interest is being given respectively.
Apart from this, interest is given at the rate of 2.25% per annum under the Medium Term Government Deposit (MTGD) category. Whereas, interest on FD of gold under the Long Term Government Deposit (LTGD) category will be given at the rate of 2.50% per annum.
Must have at least 10 grams of gold
Under the Revamped Gold Deposit Scheme, a customer has to deposit at least 10 grams of gold. However, there is no maximum limit for depositing gold. Meaning you can get interest on any amount of gold you deposit.
You can also take interest in gold
After the maturity period of the FD is over, the customer has two options to take his gold along with interest. Either he can withdraw it in the form of gold or he can take cash equivalent to the present price of gold at that time. However, for withdrawal in the form of gold, an administrative charge @ 0.20% will be charged from him.
Lasts the lock-in period
There is a lock-in period of one year under STBD category. After this period, a penalty will be levied on the interest rate for withdrawing money before the stipulated time. At the same time, investors under the MTGD category can exit the scheme at any time after 3 years. However, for breaking the scheme before the maturity period, a penalty will be levied on the interest rate. Apart from this, gold can be withdrawn after 5 years under LTGD category. There will also be a penalty on the interest rate.
Get the benefit of tax exemption
You also do not have to pay property tax on the gold FD under this scheme. At the same time, if needed, a loan can also be taken on the basis of this FD.
Who can invest?
Trusts and companies such as Indian Individuals, Proprietorship and Partnership Firms, Hindu Undivided Families (HUFs), Mutual Funds/ Exchange Traded Funds registered with SEBI can invest under this scheme.
