Gold Deposit Schemes


The Rates of Interest on Gold Deposit Schemes w.e.f 10.03.2016 are as under:

 

Parameters/Schemes

Short Term Bank Deposit Scheme (STBD)

Medium Term Govt Deposit Scheme (MTGD)

Long Term Govt Deposit Scheme (LTGD)

Maturity Period

1-3years

5-7 years

12-15 years

Denomination of Principal

In grams of Gold denominated up to 3 decimal points

Denomination of Interest

In grams of Gold denominated up to 3 decimal points

INR on the value of Gold in INR at the time of the deposit

INR on the value of Gold in INR at the time of the deposit

Rate of Interest

0.25 % per annum (for 1 to 3 Years)

To be compounded on annual basis for deposits for more than 1 year

2.25% p.a

2.50% p.a.

Payment of Interest

At the time of redemption of deposit either at maturity or premature withdrawal as per the scheme.

Minimum Lock-in Period

1 Year

3 Years

5 Years


Penalty on Premature Redemption
:


 

Type of Deposit

Lock-in period Years

Interest /Penalty

STBD

1 year

1.Premature withdrawal after the initial lock-in period would be entertained in cash equivalent to the price of the gold as per conversion rate calculated as per RBI guidelines.

2.No Interest will be paid for premature withdrawal.

3.In case of pre-mature encashment after the lock-in period but before 2 years, besides no interest as indicated above, swap charges and assaying & refining charges will be recovered from the depositor, at the discretion of the bank.

 

Type of Deposit

Lock-in period Years

Actual period for which deposit has run years

 

 

> 3 and < 5

=5 and < 7

MTGD

3 years

Applicable Rate for MTGD at the time of deposit minus 0.375%

Applicable Rate for MTGD at the time of deposit minus 0.25%

Type of Deposit

Lock-in period Years

Actual period for which deposit has run years

 

 

> 5 and < 7

=7 and < 12

=12 and < 15

LTGD

5 years

Applicable Rate for LTGD at the time of deposit minus 0.25%

Applicable Rate for LTGD at the time of deposit minus 0.375%

Applicable Rate for LTGD at the time of deposit minus 0.25%