Have idle gold: Can earn extra bucks this way

This offer from PNB varies from a duration of one year to 15 years

Have idle gold: Can earn extra bucks this way
However, the interest shall be paid in rupees annually on March 31 or cumulative interest on maturity.

If you have some idle gold lying at home of the vault of a bank, you have an option of earning a decent income from it. The second largest public sector bank of the country Punjab National Bank (PNB) is offering a gold monetisation scheme where one can keep his/her idle gold and earn a steady income.

The scheme

Any individual can deposit a minimum of 10 grams of gold in any form with the bank and earn a regular income. This scheme is for short, medium and long term and varies from one year to 15 years.

Resident Indians are eligible to make deposits. Joint deposits of two or more eligible depositors are also allowed under the scheme and the deposit in such case shall be credited to the joint deposit account opened in the name of such depositors.

Duration of the deposit

There are three types of deposits which PNB is currently offering – short-term that varies between one and three years, medium-term deposit for tenures between five and seven years and long-term deposit for tenures between 12 and 15 years.

Interest rate

For short-term deposit: For a period of one year the rate of interest per annum is 0.50%, for above one year up to two years it is 0.60% and for above two years and up to three years the interest rate is 0.75%.

The principal on short-term deposit shall be denominated in gold and interest shall be calculated in Indian rupees.

For medium term deposit the interest rate is 2.25% while for long-term deposit it is 2.50% per annum.

In the case of medium and long term, the principal will be denominated in gold. However, the interest shall be paid in rupees annually on March 31 or cumulative interest on maturity.

The depositor will have option to receive payment of simple interest annually or cumulative interest, which is compounding annually on maturity. The option is to be selected at the time of deposit.


For all three deposit options, PNB will pay the principal amount and interest at maturity. The payment will be either in gold or in monetary medium equivalent of the deposited gold and accrued interest based on the price of gold prevailing at the time of redemption.

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