SBI Gold Monetisation Scheme: Make money from your idle gold! Top tips to maximise gains by expert

SBI Gold Monetisation Scheme: Make best use of the idle gold jewellery lying in your homes. This jewellery will earn you good returns. The value of your unused or outdated jewellery can be unlocked through Gold Monestisation Scheme (GMS). Many banks offer this service including the largest public sector bank in India, the State Bank of India (SBI). 

SBI accepts the gold deposits under this scheme on behalf of the Government of India. The deposits can be made for broken period also. 

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SBI Gold Monetisation Scheme – Features 

1. SBI GMS provides customers an opportunity to earn interest income on their idle gold holdings. 
2. Short Term Bank Deposit (STBD) - Tenure is 1 to 3 years 
3. Medium Term Government Deposit (MTGD) - Tenure 5-7 years. 
4. Long Term Government Deposit (LTGD) Tenure 12-15 years. 
5. Minimum deposit requirement is 30 gms (gross) while there is no limit for maximum quantity. 
6. Nomination Facility available for deposits in single names in individual capacity. 

For STBD the current interest rates are as under: 

1. For 1-year interest rate is at 0.5 per cent p.a. 

2. Above 1 year and up to 2 years interest rate is 0.55 per cent p.a. 

3) Above 2 years and up to 3 years interest rate is 0.60 per cent p.a. 

Non-Cumulative (on 31st March) every year or Cumulative (On Maturity) interest on maturity. The principal and interest on STBD shall be denominated in gold. On maturity interest for broken period will also be paid. 

For MTGD the current interest rates is at 2.25 per cent p.a. 

In the case of MTGD and LTGD, the principal will be denominated in gold. However, the interest shall be paid in INR 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. 

What Expert says: 

Unused jewellery which is very old is not useful and will not give the desired return, so this scheme can be utilised, Jitendra Solanki, expert on Personal Finance matters said. 

He however cautioned that Gold in the form of coin or bar would not give as high returns if utilised under the GMS scheme.  

He said that this scheme has a lock-in period, so one has to factor the time period for which the unused gold is deposited with the bank. 

He said that this scheme is largely applicable for those who have large amounts of Gold worth several crores. For such people the interest income could look more tangible.