Diwali/Dhanteras special: All about gold savings schemes from jewellers

Looking to buy gold this Diwali? Then, you should check out these gold savings schemes that might help you accumulate a large sum for gold purchase and save on costs

Kavya Balaji Oct 22, 2019

Gold jewellery savings schemesEveryone in India seems to love gold. Be it a wedding, festival or party, gold is a fashion statement. Most Indians think gold is a good investment and buy gold coins and bars apart from jewellery. This is one investment that is placed way above deposits, mutual funds, stocks and other such assets that one might need. Moreover, gold is a defensive investment option whenever there is a global financial turmoil – which we keep encountering now more often than what it used to be.

Now, ahead of Diwali, gold prices have dipped to Rs 3,398 per gram from Rs. 3,500. If gold is your first love, then we are sure you would like to save some money when you get that precious metal home. Most of the times, you might be investing in gold jewellery. You need to pay making charges, wastage and other charges for jewellery. If you want to save money on your gold purchases, you could look at gold savings’ schemes offered by jewellers across the country.

How they work

There are different types of schemes. Some jewellers ask you to deposit a specific amount every month for a chosen tenure. At the end of the tenure, you can buy gold jewellery for the maturity amount plus a bonus given by the jeweller. Then, there are jewellers that don’t give you any bonus but allow you to purchase gold jewellery without any making charges or wastage.

There are jewellers who offer online discounts for those who are members of their gold savings schemes. Customers can buy gold jewellery on discount after paying the money for the gold savings scheme.

Here are some of the most popular gold savings schemes that you might want to try out.

Tanishq Golden Harvest Scheme

Tanishq’s Golden Harvest is for a tenure of 10 months and the minimum instalment for the scheme is Rs. 2,000. You can increase this in multiples of Rs. 1,000.  From the end of the 10th month you will be eligible for a special discount which could vary from 55% to 75% of one of your instalments.

However, you can get the Golden Harvest proportionate discount after completion of 6 months too. This will be applicable after you have completed instalment payments. Tanishq requires you to mandatorily close the gold savings account within 421 days from the date of opening the account.

As a Golden Harvest account holder, you can take advantage of any ongoing offer at Tanishq showrooms and combine the gold savings scheme benefit with the ongoing offer to get both the discounts. You will have to redeem the amount within 421 days from the date you enrol for the scheme. Tanishq has introduced the auto-debit facility for the Golden Harvest scheme. You can also use your debit card, credit card, net banking or cash for making payments.

Malabar Gold Smart Buy

Malabar Gold and Diamonds offers a savings scheme where you can get discounts for placing orders for any jewellery design. You can choose from items that are in stock and items that are ‘out of Stock’ which can be manufactured on request. You need to plan your jewellery purchases in advance and will need to make upfront payment to complete this process. Once order process is completed all the products will be manufactured and delivered by the delivery date.

The Smart Buy scheme is available only for the products on the Malabar Gold and Diamond website. You can avail the scheme in case of products like earrings, pendants and necklaces which does not require sizing. Some products such as rings, bangles, chains, and bracelets will have the Smart Buy plus customise option.

Malabar Gold and Diamonds offers flexible online payment options including credit cards, debit cards, net banking and fund transfer. But they do not accept Cash On Delivery orders for Smart Buy products.

GRT Golden Eleven Flexi Plan

GRT Jewellers’ savings plan helps you select an amount of your choice as monthly advance payment. Monthly advance payment slabs start from Rs 500. GRT will give you a pass book to keep track of your monthly payments. You need to make eleven equal monthly advance payments. After you make the advance payment for the 12th month, you can buy the jewellery of your choice without wastage / Value addition (VA) charges. Note that special items like platinum, emerald, diamond, ruby, ethnic and vintage jewellery are excluded from the scheme.

If you do not purchase jewellery in the 12th month from the date of enrolment, GRT could opt to refund the total advance amount paid without any benefits. They will send it directly to your registered address by cheque or get it transferred online to your bank account. So, be sure to avail the offer in the 12th month.

This gold savings scheme provides you with the option to save based on either the weight of the jewellery or the value of the jewellery. So, you can buy jewellery for the maturity amount that is equivalent to the weight of the jewellery or the value of the jewellery.

Jos Alukkas Easy Buy Gold Scheme

This plan from Jos Alukkas starts from Rs 1,000 and you can save in multiples of Rs 1,000. The scheme allows you to plan for gold jewellery purchases up to 10 months in advance while offering the prevailing gold rate. You can make the purchase without paying making charges and wastage. After regular remittance of monthly installments, you can purchase jewellery after paying the last instalment.

It is mandatory to pay one installment every month and you can make the payment online or at the stores. You can avail one or more purchase schemes. On maturity of the scheme, you can purchase jewellery from either Jos Alukkas website or any of the Jos Alukkas showrooms.

Caveat Emptor

Note that these schemes do not come under the purview of any of the government laws and regulations. These schemes should come under the Banning of Unregulated Deposit Scheme Ordinance where your money will be protected. However, jewellers like Tanishq say “Tanishq Golden Harvest Plan is exempted from the said notification issued by Government of India. We confirm that our company is a public limited Company and listed with SEBI and other regulators and we are complying with all required compliance as per law”. Given the situation, it is prudent to choose reputed jewellers and keep all your scheme documents safely in case there are any issues with redemption.

You can save up, using fixed deposits and mutual funds before buying gold. This will help you get interest/profit for the money invested and also redemption will be easy. Buying gold coins and bars will help you get the maximum out of your gold purchase without you paying wastage or making charges. You can even try gold Exchange Traded Funds (ETF).

Read the article Why Investing In Gold Through Exchange Traded Funds Is A Good Idea for more information.

Want details on mutual funds? Check out our MF data section. You can get details on the performance of all mutual funds.

Kavya Balaji

Kavya Balaji is a senior contributing writer with RupeeIQ. With more than 14 years of experience in the finance space, Kavya loves everything to do with personal finance. She feels financial literacy is important for every household and likes to stick to simple language for explaining personal finance stories. She is a consultant with investment management companies. In spare time, she reads murder mysteries.

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