Akshaya Tritiya 2018: SBI Gold Deposit Scheme: Interest Rates, Tenures, Features

State Bank of India (SBI) offers a revamped gold deposit scheme (R-GDS). The revamped gold deposit scheme (R- GDS) is in the nature of a fixed deposit in gold. Customers can deposit their idle gold under R- GDS which will provide them safety, interest earnings and a lot more, says SBI on its website, sbi.co.in. The gold deposit will be accepted by SBI, the largest lender of the country, on behalf of the central government. Ahead of Akshaya Tritiya, which is considered an auspicious day for buying gold, you may consider investing in SBI's revamped gold deposit scheme. Akshaya Tritiya falls this year on April 18, Wednesday.

(Also Read: Buying Gold On Akshaya Tritiya? Follow These Tips For a Good Deal)

Here are the details of SBI's revamped gold deposit scheme (R-GDS)

Eligibility for investing in SBI's revamped gold deposit scheme:
Any resident Indian of the following categories can invest in SBI's revamped gold deposit scheme:

Individuals, singly or jointly (as former or survivor)

Proprietorship & Partnership firms

Hindu Undivided families (HUFs)

Trusts including mutual funds/exchange traded funds registered under SEBI (Mutual Fund)

Companies

(Also Read: SBI Savings Bank Account Interest Rate, Penalty For Insufficient Balance)

Minimum Quantity
You need to deposit at least 30 grams (gross) of gold. There is no upper limit for gold deposit, said SBI.

Types of deposit under SBI's revamped gold deposit scheme:

Short Term Bank Deposit (STBD):

An STBD under SBI's gold scheme will have a tenure of one to three years. Its redemption will be either in rupee equivalent or gold.

(Also Read: SBI Zero Balance Savings Account - How To Open It And Other Details Here)

Medium and Long Term Government Deposit (MLTGD):

An MLTGD has a tenure of five to seven years and 12-15 years. The gold deposit will be accepted by SBI on behalf of the central government. Its redemption will be only in INR equivalent of the value of gold as per the then prevailing price of gold.

Interest rate and Payment under SBI's revamped gold deposit scheme:

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Short Term Bank Deposit (STBD)
The current interest rates are: 0.50 per cent per annum for 1 year, 0.55 per cent for 2 years and 0.60 per cent for 3 years. Option for interest payment: STBD: Non-Cumulative (on 31st March) every year or cumulative (On Maturity)

Medium and Long Term Government Deposit (MLTGD)
On a tenure of five to seven years, your gold deposits will fetch an interest rate of 2.25 per cent per annum.

On a tenure of 12-15 years, your gold deposits will fetch an interest rate of 2.50 per cent per annum.

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The principal and interest on STBD shall be denominated in gold. In the case of MLTGD, the principal will be denominated in gold. However, the interest on MLTGD shall be calculated in Indian rupees with reference to the value of gold at the time of the deposit.

(Also Read: SBI Savings Bank Accounts For Minors: From Eligibility To Interest Rates)

Effective date of SBI's revamped gold deposit scheme (R-GDS):

Interest on deposits under SBI's revamped gold deposit scheme will start accruing from the date of conversion of gold deposited into tradable gold bars after refinement or 30 days after the receipt of gold whichever is earlier.