How monthly gold schemes at jewellery shops work, what the 'bonus' really is, and the questions to ask before you join one.
Many jewellery shops run monthly savings schemes: you pay a fixed amount every month, and at the end you buy jewellery with the total plus a little extra from the shop. They can help with planning a big purchase, but the details differ a lot from shop to shop.
How a typical scheme works
- You choose a monthly amount, for example ₹5,000.
- You pay it every month for a fixed period, often 10 or 11 months.
- At the end, the shop adds a benefit, often equal to one month's payment, or a discount on making charges.
- You use the total to buy jewellery from that shop. Most schemes do not pay out cash.
Two common types
| Type | How it works | What to know |
|---|---|---|
| Amount scheme | Your payments are added up in rupees | At the end, you buy at that day's gold rate. If prices rose, your money buys less gold. |
| Weight scheme | Each payment is turned into grams of gold at that day's rate | Your grams are fixed. Rising prices don't reduce what you get, but falling prices don't help either. |
Is the "bonus" really free?
The extra month or making-charge discount is real, but compare it with:
- The shop's making charges on the designs you'll actually choose. A high making charge can cancel out the bonus.
- The gold rate the shop uses on the day you buy.
- Whether you lose the bonus if you miss a payment or stop early.
Questions to ask before joining
- What exactly is the benefit at the end, and is it written in the scheme terms?
- What happens if I miss a month, or want to stop early?
- Can I use the amount for coins, or only for jewellery? Any designs excluded?
- Can I use it at any branch of the shop?
- Do I get a receipt for every payment? (Always keep them.)
Staying safe
- Prefer well-established shops with a long track record.
- Pay by UPI, card or bank transfer so there is a record, and keep every receipt.
- Be careful with schemes that promise unusually high returns, cash payouts or "double your gold". Unregulated deposit schemes are banned in India, and people have lost money in them.
Alternatives
Some people prefer to save in a bank recurring deposit and buy jewellery at the end, keeping the freedom to choose any shop. Others buy small gold coins over time. See ways to own gold. This page explains how schemes work; it is not advice to join or avoid any particular scheme.
A worked example
Say you pay ₹5,000 a month for 11 months, and the shop adds one month as a bonus at the end:
| Your payments: ₹5,000 × 11 | ₹55,000 |
| Shop's bonus | ₹5,000 |
| Amount to spend | ₹60,000 |
If 22K gold is ₹13,000 a gram on the day you buy, making charges are 12% and GST is 3%, each gram of jewellery costs about ₹13,000 × 1.12 × 1.03 ≈ ₹14,997. So ₹60,000 buys about 4 grams of jewellery.
Without the scheme, your own ₹55,000 at a shop with 8% making charges would buy about 3.8 grams, so in this example the scheme gives you more. But if the scheme shop charged 18% making instead of 12%, the same ₹60,000 would also buy only about 3.8 grams, and the bonus would be cancelled out. That's why comparing making charges matters as much as the bonus.
Use the calculator on your city's rate page to try your own numbers.
This guide is general information for buyers. Rules and tax rates can change; check with your jeweller, bank or a qualified adviser before big decisions.