Last time when I wrote article on Religare Easy Gold Plan, I never knew that this fever would spread like anything in near future. Few days ago my mom was having a casual chat with my aunt, when she came to know that there are several options similar to Religare easy gold plan.
She asked me to enquire about such plans and check whether they are good investments or not. Few days later when I was in the process of searching various schemes, she told me to look into Gold Harvest Scheme (GHS) which is offered by Tanishq of TATA. Actually this plan was active with Tanishq long back but came to lime light recently because of their massive marketing campaign one ad can be found below.
Tanishq Golden Harvest Scheme (GHS) advertisement
Unlike Religare which is offering 24K gold bars or coins, With Tanishq one can buy 22K ready to wear jewellery both gold (including white gold) and Diamond (which any one can see on their offerings) by paying equated monthly installments (EMI’s).
Tanishq Golden Harvest Scheme (GHS) options
11 +1 months Scheme
Under this scheme the person can opt for a particular amount ranging from Rs. 500 to any multiples of Rs. 500 thereafter for 11 months after which Tanishq will pay the 12 th Installment at the end of the term.
For Example: Suppose Ms. Rajan enters into the scheme and would like to pay Rs. 1, 00,000 per month, therefore at the end of 11 months Ms. Rajan would have paid 11, 00,000 on which at the end of the period Tanishq would add Rs 1, 00,000 thus resulting in a total of Rs. 12, 00,000 money which she is entitled to buy the jewellery worth off.
18 Months scheme
Under this scheme the person can pay any amount as per his or her convenience for 18 months (the amount has to be greater than Rs. 500) and at the end of 18 months the total amount paid plus a maturity bonus is what he or she would get.
For Example: Ms. Rajan enters into 18 months plan and pays regular installments of Rs 1, 00,000. At the end of 18 months she would get Rs. 18,00,000 plus a maturity bonus of Rs. 1,30,000 (maturity bonus on fixed installment in 130% of the installments) which totals to 19,30,000.
Or if she is not able to pay Rs. 1, 00,000 for the whole term, then under this scheme Ms. Rajan can pay any amount she likes (should be more than Rs. 500). In month one the installment can be Rs. 500 than in other month the installment can be Rs. 2, 00,000 and so on. In this case as per Tanishq the maturity bonus (which was 130% of installment in case of fixed installments) would be calculated by a mathematical formula used by their system (from unofficial sources I came to know that the system would average out the total installments paid and will calculate the maturity bonus on it).
All said and done it looks nice that we pay 11 installments and the company would pay the 12 th one or we pay 18 installments the company would give a 130% of installments as maturity bonus. But here are some important points which one should consider before entering into the plan.
Calculations for Tanishq Golden Harvest Scheme (GHS)
The first and the foremost mistake that Tanishq did is that it called the Gold harvest scheme as an investment. I would not term it as an investment rather I would term it as saving, Please do find my workings below for the rationale.
Second after the maturity the beneficiary can purchase the gold within six months post which the account would be suspended for redemption to get it reactivated the subscriber of the scheme has to go to Tanishq store along with a valid photo ID to reactivate it.
Third if there is any delay in paying the installments then the subscriber has to pay other installment in advance.(For example: If you delayed for 2 months you have to pay the delayed month installments and as well as next 2 months installments well in advance to make up the delay months installment, so that you will get the complete benefits at the end of maturity, If not some deduction would happen from your benefits(I.e. Scheme Benefits at the end of maturity) or if a subscriber is not able to pay any installments going forward or would like to close his or her account then he or she is entitled to buy the gold only for the sum they have deposited.
The subscriber has the option to change the store as per his or her convenience till 15 days before the maturity. The amount can be only used to buy jewellery , it cannot be redeemed for gold coins or any other cash or cash equivalents. At the time of redemption if Tanishq is running any other discount then the subscriber can club both the offers.
How to enroll for Tanishq Golden harvest scheme (GHS) online
To enroll under this scheme one can walk into Tanishq store along with a valid photo ID, fill a small form and get the passbook and pay his or her EMI’s on time by walking into the store or by visiting Tanishq.co.in > Invest online (Right hand corner of website).
The mode of payments accepted are cash (in case of offline payments), credit and debit cards (for online and offline)
One might be thinking that on one hand I am criticizing the plan on the other I have enrolled myself in to plan, the reason being it’s been long since I have added gold into my family portfolio. I have been buying coins on Akshaya Tritiya or Diwali or Dhanteras but they were not solving my purpose. So in order to procure a large sum at one is the reason for my enrollment. As mentioned earlier in case of Religare easy gold review. If you are an investor you can skip or if you want to stock gold then you can opt for it. At the same time do check the PP jewelers scheme I think they are offering two installments against one of Tanishq.