Gold Schemes: Which is the Best Gold Saving scheme?

By Team Gullak

Nov 13, 2024

6 min read

Gold schemes have been gaining immense popularity among many gold investors. This is mainly due to their flexible approach to buying gold. In today's article, we will discuss what gold schemes are, compare multiple gold saving schemes & ultimately empower you to choose the right gold scheme for yourself.

What are Gold schemes?

A gold scheme or gold saving scheme offers a flexible approach to buying gold for future purposes. These schemes typically last for a tenure of 10-11 months, where you’d have to make monthly deposits and at the end of the term you can buy jewellery of your choice from the jeweller. These schemes also provide investors with some discounts on making charges or VA on your jewellery purchase.

What are the different gold saving schemes in India?

There are a plethora of gold schemes in India. In this section, we will discuss the most popular schemes and help you choose the best gold saving scheme for yourself:

Tanishq Golden Harvest

The Tanishq Golden Harvest is a 10 month long gold saving scheme that allows you to save for gold jewellery purchase. Under this gold scheme, you will have to pay monthly advances for a period of 10 months and at the end of the tenure, you will be eligible to buy jewellery of your choice from Tanishq’s gold stores.

Benefit- After the tenure, Tanishq provides you a discount of up to 7.5% on the 1st advance paid.

GRT Jewellery Purchase Plan

GRT jewellers provide popular 11 month gold schemes. These schemes fundamentally work in a similar manner. Basically, you have to pay monthly advances for a tenure of 11 months and after the end of the tenure, you can buy jewellery of your choice from GRT jewellers.

Benefit- 50% discount on VA up to 18% wastage charge

Malabar Golden Bloom Plan

The Malabar gold scheme is a 11 month gold saving scheme that allows you to save in periodic intervals to buy gold with the accumulated amount at the end of the tenure.

Benefit- Up to 18% off on VA(wastage charges)

Gullak Gold+

Gullak Gold+ is a gold scheme that allows you to grow your gold quantity by 5% every year. So, 100 gms invested in this gold saving scheme would become 105 gms in 1 year and 148 gms in 8 years. This gold scheme doesn’t have any tenure, so you can withdraw anytime or keep saving. When you wish to withdraw, you have the option to withdraw your savings as cash or gold or redeem jewellery at Gullak’s partner stores like Caratlane by Tanishq.

Benefits-

1. Only gold scheme where your gold quantity grows by 5% every year

2. When redeeming jewellery, you also get to claim a flat 5% off on gold price

How do the different Gold schemes compare against each other?

In this section, we will compare the different gold saving schemes from the above section under different parameters:

Table: Different Gold schemes compared against each other

How is Gullak Gold+ different from other Gold schemes?

There are 3 main differences between Gullak Gold+ and other gold schemes:

1. Gold quantity increase: Gullak Gold+ is the only gold scheme where your gold quantity increases by 5% pa. This allows an immense increase in gold quantity.

2. Flexibility: You can deposit daily/weekly/monthly in Gullak Gold+. Pause or withdraw your investments anytime.

3. Real gold gets purchased at your SIP intervals: Most gold schemes facilitate monthly advances but these advances do not get invested in gold until the end of tenure(typically 11 months). This leads to you buying a lesser quantity of gold compared to what you would have if it were invested at the same time. However, with Gullak Gold+, your gold gets bought at your chosen intervals.

Concluding thoughts on Gold schemes

Gold schemes are an amazing way to save for future gold purchases. It is important to consider a variety of factors before investing in them like benefits, lock-in etc. The extra gold every year with Gullak Gold+ can give you an edge over most other gold schemes. However, at the end of the day, the decision lies with you as to which is the best gold saving scheme for your needs.