SBI Gold Monetisation Scheme: Make money from your idle gold? Do this

SBI Gold Monetisation Scheme: If your family finances are squeezed and you want to make some extra money, then here is a good opportunity. Surely, you have gold lying around in your house that you wear occasionally and then lock it away in an almirah. Your idle gold can give you a stable interest income of 2.25 per cent per annum. This could be an add-on to the interest income that you earn from your savings bank account. SBI offers 2.75 per cent interest rate on Savings account. How can you do this? Via SBI Gold Monetisation Scheme (GMS).

With the SBI Gold Monetisation Scheme you can earn as high as 2.25 per cent interest income. All you need is 30 gms of gold. It could be a coin or jewellery or any form of physical gold. There is no upper limit, so the more gold you have, more will be your income from it.

A 10 gms Gold futures for June 2020 contract was trading around Rs 45600 today. In terms of rupees, your 30 gms gold is worth Rs 136,800. Your effective income i.e income from gold deposits and savings account could be 5 per cent (2.25 + 2.75 = 5).

One needs to visit the bank branch to avail this opportunity.

Gold monetisation is not only rewarding but also safe option as it is regulated as per the guidelines issued by the Reserve Bank of India (RBI). It is also good for security reasons as the gold will be deposited with the bank so the liability for its safety lies with the bank.  

While, the bank gives you an option of short tenors of 1-3 years, you can opt for a Medium Term Government Deposit (MTGD) also which has a longer tenure between 5-7 yrs. For a shorter duration the interet is 0.50 per cent, but for a medium term it is 2.25 per cent. The deposit will be accepted by the Bank on behalf of the Central Government.

There is also an option of Long Term Government Deposit (LTGD) with a tenure 12-15 yrs.

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In the case of MTGD and Long LTGD, the principal will be denominated in gold. However, the interest shall be paid in Rupees annually on 31 March or cumulative interest on maturity. Broken period interest is paid at the time of maturity. Interest is calculated on gold value in rupees, at the time of deposit. Depositor will have option to receive payment of simple interest annually or cumulative interest (compounding annually) on maturity. The option to be exercised at the time of deposit, the bank website says.