If you have gold in the form of jewellery or bars you can surrender it under the SBI Gold Deposit Scheme and earn interest and tax breaks. SBI will arrange to melt your jewellery or gold and convert into bars and depending on the purity of the gold you deposited and will send you a gold deposit certificate within 90 days. You will get a temporary provisional certificate though. When the deposit period is over, after three, four or five years you can get the principal along with the interest, either in the form of gold gold (0.999 purity) or cash equivalent of gold as on that day.
Here are 6 benefits of the SBI Gold Deposit scheme.
If you have gold and jewellery up to a specified amount, you are liable to pay wealth tax. However, there is no wealth tax, capital gains tax or income tax payable on SBI Gold Deposit Schemes.
If prices of gold rise, you can stand to gain
When your gold deposit scheme matures, you get to redeem at the current rates, which means if gold prices rise, you stand to gain. Add to it the interest that you would not have got when the gold was in the locker.
You can avail of rupee loans at any branch of State Bank of India up to 75 per cent of the notional value of gold.
No locker costs and theft worries
You need not worry about locker costs to store your gold and jewellery and also there are no worries of theft. Certificates issued are extremely safe.
No upper limit
There is no upper limit on the deposit, while the minimum limit is of 500 grames.