Under SBI's R-GDS, nomination facility is available for deposits in single names in individual capacity.SBI (State Bank of India) offers a number of fixed deposit schemes.
A fixed deposit is a financial instrument provided by banks which provides investors a higher rate of interest than a regular savings account, until the given maturity date, as mentioned on the official website of SBI.
SBI offers Revamped Gold Deposit Scheme (R- GDS), which is in the nature of a fixed deposit in gold.
The customers can deposit their idle gold under R- GDS which will provide them safety, interest earnings, said the country's largest lender on its website -- sbi.co.in.: SBI Bank Fixed Deposit (FD) Reinvestment Option: Rate Of Interest, Tenure And Other DetailsSBI's Revamped Gold Deposit Scheme in detail:Eligibility: Any resident Indian of the following categories: Individuals, proprietorship and partnership firms, HUFs, trusts including mutual funds/exchange traded funds registered under Sebi (mutual fund) and companies are eligible to invest.Minimum quantity: One needs to deposit a minimum of 30 gms (gross) of gold to avail the scheme.
However, there is no upper limit for deposit.Types of deposit: There are two types of deposits under SBI's R-GDS:Short term bank deposit (STBD): Tenure for STBD ranges from a minimum of 1 to a maximum of 3 years.
The redemption will be either in rupee equivalent or gold.Medium and long term government deposit (MLTGD): Tenure for MLTGD is between 5-7 years and 12-15 years.
The deposit will be accepted by the bank on behalf of the central government.
Redemption of the deposit will be only in rupee equivalent of the value of gold as per then prevailing price of gold.Rate of interest and payment:STBD:The interest rates under STBD are, 0.50 per cent p.a.
for 1 year, 0.55 per cent for 2 years and 0.60 per cent for 3 years.Option for interest payment under STBD for non-cumulative will be on March 31, every year or cumulative on maturity.MLTGD:The interest rates under MLTGD for 5-7 years are, 2.25 per cent p.a., for 12-15 years are, 2.50 per cent p.a.The principal and interest on STBD shall be denominated in gold.
In the case of MLTGD, the principal will be denominated in gold.
However, the interest on MLTGD shall be calculated in rupees with reference to the value of gold at the time of the deposit.Effective date: Interest on deposits under the scheme will start accruing from the date of conversion of gold deposited into tradable gold bars after refinement or 30 days after the receipt of gold whichever is earlier.Nomination: Under SBI's R-GDS, nomination facility is available for deposits in single names in individual capacity.Repayment:Under STBD, one has the option to take repayment of principal, either in gold or equivalent rupees as on the date of maturity.Under MLTGD, redemption of the deposit will be in gold or rupees equivalent of the value of gold as per then prevailing price of gold.
However, 0.20 per cent administrative charges will be levied in case of redemption in gold.Premature payment:Under STBD, premature payment is permitted after a lock-in period of 1 year with a penalty on applicable interest rate.However, a Medium Term Government Deposit (MTGD) is allowed to be withdrawn any time after 3 years and a Long Term Government Deposit (LTGD) after 5 years.
Premature penalty will be as per RBI Notification dated Januray 21, 2016.For the latest Election Results Live Updates from Karnataka log on to TheIndianSubcontinent.com.
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