A clear guide to gold savings schemes in Tamil Nadu. Learn how they work, what benefits they offer, and the hidden conditions that can affect your savings.
How Gold Savings Schemes Work
Jewellers in Tamil Nadu offer gold savings plans to attract regular buyers.
You pay a fixed amount every month.
After a set period, usually 11 months, the jeweller adds a bonus equal to one installment.
You can then buy gold jewellery for the total value.
It looks simple. But you need to read the fine print.
Benefits You Get
- Builds discipline in saving for jewellery purchases
- Helps during wedding or festival seasons when gold demand is high
- Bonus installment acts like a small return on your savings
- Keeps you protected from gold price fluctuations if the plan allows rate locking
What to Watch Closely
Not all schemes are the same. Each jeweller sets different rules.
- Making Charges: Many schemes cover only the gold value. You may still pay extra making charges when buying jewellery.
- Purity of Gold: Some jewellers restrict purchases to 22K ornaments only.
- Time Limits: If you miss an installment, you may lose the bonus.
- No Cash Withdrawal: Your savings can usually be used only to buy jewellery, not taken out as cash.
- Price Lock Conditions: Some plans let you fix the price each month. Others give you only the prevailing rate at maturity.
A Real Example
If you pay ₹5,000 every month for 11 months, you invest ₹55,000.
The jeweller adds ₹5,000 as the 12th installment.
You get jewellery worth ₹60,000.
Sounds attractive. But if making charges are 10%, you end up paying ₹6,000 more.
Your benefit can get offset quickly.
Should You Join One?
Ask yourself a few questions:
- Do you plan to buy jewellery in the near future?
- Are you okay with jewellery restrictions and making charges?
- Would you earn better returns by putting money in a bank RD or mutual fund instead?
If your goal is only to buy ornaments, these schemes can work.
If you are thinking of investment, you have better options.
An overview of gold savings schemes in Tamil Nadu. Explains how they operate, their real benefits, and the terms buyers must watch closely before joining.