Neil Sonawala, Managing Director, Zen Diamond India, said customer preferences have shifted towards solutions that make fine jewellery more accessible, flexible and value-driven rather than limiting purchases to occasions such as weddings and festivals.
According to Sonawala, jewellery savings schemes help customers save systematically, manage price fluctuations and get additional value at the time of redemption.Most recently, Bengaluru-based C Krishniah Chetty launched MoneyPenny, an app-based jewellery savings plan that allows customers to start with as little as ₹100 and make flexible contributions.
While every jeweller has its own terms, most schemes follow a broadly similar model. Here’s what buyers should know.
What is a jewellery savings plan?
A jewellery savings plan is a retailer-run scheme under which customers deposit money periodically for a fixed tenure. At maturity, the accumulated amount, along with any benefit offered by the jeweller, can be used to purchase jewellery from that brand.
These plans are designed primarily for consumers planning future jewellery purchases rather than those looking to invest in gold as a financial asset.
Zen Diamond India, for instance, offers the My Gold Multiplier Plan, under which customers can accumulate 999 fine hallmarked gold through monthly contributions. According to the company, customers can redeem the accumulated gold for jewellery at maturity and receive additional rewards, subject to the scheme terms.
How do leading jewellers structure these plans?
Most major jewellery chains have their own versions.
Tanishq’s Golden Harvest allows customers to make monthly instalments for a fixed tenure, after which Tanishq contributes a bonus amount that can be redeemed on eligible jewellery purchases, subject to the scheme’s terms.
Kalyan Jewellers offers gold purchase plans with monthly instalments and maturity benefits, which may include bonus contributions or concessions on making charges depending on the selected scheme.Malabar Gold & Diamonds operates savings schemes under its Smart Buy programme, allowing customers to save over a fixed period before redeeming the amount for jewellery.
Joyalukkas and Senco Gold & Diamonds also offer jewellery purchase plans with varying tenures, instalment amounts and maturity benefits.
C Krishniah Chetty’s MoneyPenny, launched this month, differs from many traditional plans by allowing flexible contributions through a mobile app instead of fixed monthly instalments. According to the company, purchases are settled based on the lower of the average accumulated price or the prevailing market price of eligible precious metals over an 11-month period, subject to the scheme’s terms.
Are these the same as investing in gold?
No.
Jewellery savings plans are meant to help customers buy jewellery from a particular retailer. They are different from financial products such as gold ETFs, gold mutual funds or sovereign gold bonds, which are investment products that track the value of gold.
In most jewellery savings schemes, redemption is typically limited to purchases from the issuing jeweller, and the benefits depend on the retailer’s terms and conditions.
What benefits do these schemes typically offer?
Although benefits vary across brands, jewellery savings plans may include:
- Bonus contributions by the jeweller at maturity.
- Discounts or waivers on making charges for eligible jewellery.
- Flexible contribution options.
- Digital tracking through mobile apps.
- Price-related benefits under select schemes.
The exact benefits differ from one retailer to another and may change over time.
What should buyers check before joining?
Before enrolling in any jewellery savings plan, consumers should read the scheme document carefully and check:
- Whether deposits are fixed or flexible.
- The tenure and lock-in period.
- What maturity benefits are offered and under what conditions.
- Which jewellery categories are eligible for redemption.
- Whether making charges, GST or other costs still apply.
- The rules for missed instalments, cancellations or early exits.
