SBI Revamped Gold Deposit Scheme: Do you keep your gold in bank locker? You can also earn interest on it through this SBI scheme

To minimise the risk of theft or loss, people usually keep precious jewellery in bank lockers because banks provide security for valuable items like documents, jewellery, and others. However, before choosing a bank locker, you must check which bank is taking the lowest charges, the size of the locker, availability, and other things.

Do you know there is one more option where you can keep your gold safe and also earn interest on it under SBI Revamped Gold Deposit Scheme (R- GDS)? Let's know the features of this scheme and how one can use it.

What is R- GDS?

Under R- GDS, you can deposit their idle gold which will provide them safety, interest earnings, and a lot more.

How to deposit gold?

Customers who want to deposit their gold, jewellery, and coins in this scheme will have to visit the identified branches. They will have to submit gold deposit application form, duly signed by the depositors along with KYC documents and acknowledged copy of terms and conditions of the schemer to the Nodal Branch at Mumbai or at any one designated branch details of such branches are available at SBI web site. 

SBI Revamped Gold Deposit Scheme: 3 ways to deposit gold

Under the R- GDS, a customer can deposit gold in three 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) whose maturity period is 5-7 years. Whereas under the long-term government deposit (LTGD) category, gold can be fixed for 12-15 years.

How much interest you can earn on gold deposit?

Under short-term bank deposits, interest of 0.55 per cent per annum is available for one year, while for a period of 2 years and above, SBI gives an interest of 0.60 per cent per annum. In the medium-term category, deposits have to be made for a period of five to seven years. In this case, you get 2.25 per cent annual interest. 

Similarly, if you choose a long-term government deposit i.e. 12 to 15 years, then you will get 2.50 per cent interest. This is to be noted that in case of MTGD and LTGD, your principal will be counted as gold, but interest will be paid in Indian Rupees on March 31 every year or on maturity.

Maturity

After the maturity period of the FD is over, the customer has two options to take his gold along with the interest. Either he can take it back in the form of gold or he can take cash equivalent to the current value of the gold. 

When was R-GDS started?

The scheme was started by the government in 2015 as part of the Gold Monetisation Scheme. The scheme replaced the Gold Deposit Scheme of 1999. 

Tax liabilities

There is no TDS deduction under this scheme. 

Do you get the same gold on maturity?

The gold will be returned in Bar form as per the quantity mentioned in the certificate.