Why invest in gold saving schemes?
Gold saving schemes from jewellers come in handy, when you are planning to save money for an ocassion like a marriage, wedding anniversary or christening. It allows you to plan for and acts like a recurring deposit, where you build money for an important ocassion. There are various gold schemes from jewellers and you need to pick and choose your own one, before you take a decision.
GRT Golden Eleven Flexi Plan
This is one of the best plans in recent times. In this scheme, different slabs start from Rs. 500. This is a eleven months scheme and you need to select a plan for opening this scheme. There are two options: one is value based scheme and the other is gold weight based option.
Gold value based option is where you will be paying a fixed amount and as per the gold rate on that day. That amount of gold would be credited into your account.
Gold weight based option is where you will be paying the installments based upon the weight of the gold. For example you can plan to buy 1 gram per month and should pay for 1 gram every month as an installment.
Both the plans don't have a specific date to pay the payment. Better check the gold rates every day and pay the amount when the gold rate is down so that you can get more benefits.
Golden Harvest from Tanishq
Under the gold Harvest scheme from Tanishq, you pay for 10 months and after end of the 10th month the company will offer you a discount which will vary from 55 per cent to 75 per cent of the first installment. It is pertinent to note that customers can still get Golden Harvest proportionate discount after completion of six months and six installments payment. You can begin by investing in small amounts of Rs 2,000 and in multiples of Rs 1,000 thereafter. The scheme will close within 421 days from the date of opening the account. This is a popular jewellers gold saving scheme.
The Tamanna monthly gold saving scheme allows you to pay in installments and "Get Benefited at the End". You pay 12 monthly installments and get 2 months installment free on diamond jewellery and 1 month on gold jewellery.
PC Jeweller’s 'Jewels for less'
You need to pay 12 installments while PC Jeweller pays the next two installments. So if you have invested Rs. 1,000 per month for 12 months, PC Jeweller would pay 2 installments of Rs 1,000. You can buy gold and diamond jewellery from PC Jeweller for an amount equivalent to 14 installments, immediately after paying the 12th installment. In terms of returns this comes to more than 25% per annum.
Jos Alukkas’ Swarnanidhi
Under Jos Alukkas 'Swarnanidhi' on completion of 18 months, the subscriber gets invested amount plus twice the subscribed amount added to the total and can buy BIS 916 Hallmarked gold for the same.
New subscribers get a special gift equal to the subscribed amount at the first payment itself. This simple and convenient scheme is highly beneficial for house wives and college students.
Prince Jewel Plus Scheme
Here you need to make 11 advance payments to purchase the gold of your choice once the scheme matures. The minimum investment for this scheme is Rs. 1000 and after that one increase their investment amount in terms of Rs 500. This is a fixed scheme for one year.
Khazana Wastage Scheme
Khazana Jewelries has come up with a good offer called the Khazana Wastage Scheme. The duration of the scheme is 1 to 11 months. Here a customer needs to deposit the money with in one month period. The customer can pay between Rs 1,000 to Rs 1 lakh, as the scheme starts with this amount. Once the customer pays 11 installments he can buy gold off the cost he paid as per the gold rates on that day. For example, if a customer pays Rs 1,000 per month for 11 months then eleven thousand will be in his bag, and he can buy a plain gold worth Rs 11,000 but as per the gold rates on that day. In short, your gold rates are not locked on the day you deposit money in the scheme. So, on the day of purchase if gold prices are down, you are blessed with lower rates.
GST Rules Change For Gold Saving Schemes With Jewellers
The new changes to the GST implication in respect of gold saving schemes will augur well both for the consumers as well as gold jewelers.
Earlier gold saving schemes in which the jewelllers mops up installments for 11 months and pay the 12th EMI on their own and allow redemption of accumulated amount with cash was taken off but now it is being made more profitable for the consumer.
The Council has allowed consumers to pay an upfront 3% GST on redemption of such amount instead of 3% charge towards each of the installment.
So, now the pre-GST era and post GST rules are at par with GST implications on the advances received for providing goods or services.
Gold saving schemes are good for those looking to accumulate gold for buying physical gold for a later purpose. We suggest that you invest in these schemes, not as an investment, but, only if you want to buy physical gold.