SBI Offers Gold Deposit Scheme: Eligibility, Interest Rates And Other Details

SBI (State Bank of India) offers Revamped Gold Deposit Scheme (R-GDS), which is a fixed deposit scheme in gold. Under R-GDS, customers can deposit their idle gold which will provide them safety and interest earnings, said the country's largest lender on its website, sbi.co.in. Resident Indians of categories such as individuals, proprietorship and partnership firms, HUFs (Hindu Undivided Family), mutual funds registered under Securities and Exchange Board of India and companies are eligible to invest in SBI's scheme. One can deposit gold in the form of raw gold such as gold bars, coins, jewellery excluding stones and other metals, noted SBI..Here are key things to know about SBI's Revamped Gold Deposit Scheme (R-GDS):.1. Quantity: Customers need to deposit a minimum of 30 grams (gross) of gold. However, there is no upper limit for deposit, according to SBI's portal. .2. Types of deposit: There are three types of deposits under SBI's R-GDS: .Short Term Bank Deposit (STBD): Tenure for STBD ranges from a minimum of 1 year to a maximum of 3 years. .Medium Term Government Deposit (MTGD): Tenure for MTGD is between 5 and 7 years. The deposit will be accepted by the bank on behalf of the central government..Long Term Government Deposit (LTGD): Tenure for LTGD is between 12 and 15 years. The deposit will be accepted by the bank on behalf of the central government..3. Rate of interest and payment: .STBD: The interest rates under STBD are, 0.50 per cent p.a. for 1 year, 0.55 per cent for up to 2 years and 0.60 per cent for 3 years. .MTGD: The interest rates under MTGD for 5-7 years are, 2.25 per cent p.a..LTGD: The interest rates under LTGD for 12-15 years are, 2.50 per cent p.a..In the case of MTGD & LTGD, the principal will be denominated in gold. However, the interest shall be paid in rupees annually on March 31 or cumulative interest on maturity..4. Repayment: .Under STBD, customers have the option of taking a repayment of principal either in gold or equivalent rupees as on the date of maturity..Under MTGD and LTGD, redemption of the deposit will be in gold or rupees equivalent of the value of gold as per then prevailing price of gold. However, 0.20 per cent administrative charges will be levied in case of redemption in gold..5. Premature payment:.Under STBD, premature payment is allowed after a lock-in period of 1 year with a penalty on applicable interest rate..One can withdraw deposits in MTGD any time after 3 years and after 5 years in LTGD with penalty on interest, said SBI.

SBI Offers Gold Deposit Scheme: Eligibility, Interest Rates And Other Details

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP