A plain, step by step explanation of what a monthly gold saving scheme actually does with your money, how gold gets booked in your name, and what you receive at the end. Reviewed 5 July 2026 by the Londe Jewellers team.
Short answer: A monthly gold saving scheme in Nagpur works by letting you pay a small fixed or flexible amount every month for a set tenure, and each payment is recorded as real gold in your name at that day's live rate rather than sitting as idle cash. Because you buy a little every month, your average buying rate is smoothed across high and low rate days. At maturity you redeem the accumulated gold as jewellery or coins, and a good scheme rewards you with either a bonus month or waived making charges. Londe Jewellers Gold & Diamonds runs two such schemes directly, the Golden Tree and the Golden Locker, with no third party agent, backed by 37+ years of trust since 1989. Compare both on the gold saving schemes hub.
Every genuine jeweller run gold saving scheme follows the same five steps. The mechanics below are what makes it different from simply keeping money in a savings account.
| Step | What happens | Why it matters |
|---|---|---|
| 1. Enrol | You open a scheme account at the store with ID and address proof, and choose a fixed or flexible monthly amount. | The account is opened in your name, so every deposit is tracked against you. |
| 2. Pay monthly | You deposit your chosen amount each month for the scheme tenure, in store or online. | A small regular habit builds a real gold holding without a single large outlay. |
| 3. Gold gets booked | Each deposit is recorded as gold weight or value at that day's live Nagpur rate. | Your money becomes gold immediately, not idle cash that loses value to inflation. |
| 4. Rate averaging | Because you buy across many months, your effective buying rate is the average of high and low rate days. | You are protected from buying everything on one expensive day. |
| 5. Redeem at maturity | At the end of the tenure you take your accumulated gold as jewellery or coins, plus the scheme benefit. | You get a bonus month or waived making charges as the reward for saving with discipline. |
You pay only the monthly amount you commit to at enrolment, nothing more. There is no hidden charge for joining a jeweller run scheme when it is operated directly by the jeweller. In the Golden Tree you choose a fixed monthly amount and pay the same figure each month. In the Golden Locker you can vary the amount from month to month, starting from as little as Rs 1,000, up to a total of Rs 2,00,000 across the 11 month tenure. In both cases the money is not a deposit that earns interest in cash, it is converted into gold, which is the whole point of a gold saving scheme.
This is the step that separates a real scheme from a simple cash saving. In the Golden Locker, every deposit buys 22K BIS hallmarked gold at the live Nagpur rate on the day you pay, and that gold weight is recorded against your account. So if the rate is lower one month you get slightly more weight for the same rupees, and if it is higher you get slightly less. Over 11 months these differences even out into a smoothed average rate. The Golden Tree instead accumulates your fixed monthly value and rewards you with a bonus contribution at the end. Either way, what you are building is gold booked in your name, not a loose promise, which is why you should only ever join a scheme run by an established jeweller with physical stores you can walk into.
The single biggest reason a monthly scheme beats one large purchase is rate averaging. Nobody can reliably guess whether gold will be cheaper next month or next year. By buying a small amount every month, you automatically buy some gold on cheaper days and some on costlier days, and your average cost lands in the middle. This is the same idea as a mutual fund SIP, applied to gold, which is why a flexible plan like the Golden Locker is effectively a gold SIP. Read the full gold SIP guide to see the averaging worked out with numbers.
At maturity you redeem your accumulated gold, and the scheme benefit is what makes the saving worthwhile. In the Golden Tree you receive a bonus month on top of what you paid, so your effective gold works out to more than your deposits alone. In the Golden Locker you pay 0% making charges on the accumulated 22K weight if you redeem in the full benefit window, Day 331 to Day 365, so you pay only the gold value plus 3% GST when you convert it into jewellery. Redeeming earlier gives a reduced benefit, and the Golden Locker deposits are not returned as cash, they are meant to be taken as gold. To pick the plan that fits your goal, read the Golden Tree vs Golden Locker decision guide.
A gold saving scheme is safe when three things are true. First, it is run directly by the jeweller with no third party agent collecting your money. Second, the jeweller has physical stores you can visit and a long track record, so you are not trusting a name you cannot find. Third, every deposit is recorded against your account and every redemption comes with a proper hallmark bill. Londe Jewellers Gold & Diamonds meets all three, running both schemes itself from 4 stores in Nagpur with 37+ years of trust since 1989. Always avoid any scheme where a middleman, not the jeweller, holds your instalments.
You can open the Golden Tree or the Golden Locker at all four Londe Jewellers Gold & Diamonds showrooms in Nagpur. Our flagship store is at Sitabuldi, in the heart of the main market and a short walk from Sarafa Bazar, open 11 AM to 8:30 PM every day. You can also visit Gokulpeth near West High Court Road, Manish Nagar, or Nandanvan. Bring a valid ID proof and address proof to open a scheme account, or message us on WhatsApp at +91 89562 91529 and the team will walk you through the scheme document, the tenure, and today's live rate before you commit a single rupee.
Londe Jewellers Gold & Diamonds has served Nagpur and Vidarbha since 1989, with 37+ years of trust and 5 lakh families. Every gram is BIS hallmarked, both schemes are run directly by Londe with no third party agent, and every deposit is recorded in your name with a proper bill.
You pay a small fixed or flexible amount every month for a set tenure, and each payment is recorded as real gold in your name at that day's live Nagpur rate. Because you buy a little every month, your average buying rate is smoothed. At maturity you redeem the accumulated gold as jewellery or coins with a bonus month or waived making charges. Londe Jewellers runs the Golden Tree and Golden Locker directly at all 4 Nagpur stores.
Only the monthly amount you commit to at enrolment, with no hidden joining charge when the scheme is run directly by the jeweller. The Golden Tree uses a fixed monthly amount. The Golden Locker lets you vary the amount from Rs 1,000 upward, up to a total of Rs 2,00,000 across the 11 month tenure. The money is converted into gold, not held as cash.
In the Golden Locker each deposit buys 22K BIS hallmarked gold at the live rate on the day you pay, and that weight is recorded against your account, so a lower rate month gets you slightly more weight. The Golden Tree accumulates your fixed monthly value and adds a bonus at the end. Either way the gold is booked in your name, which is why you should only join a scheme run by an established jeweller with physical stores.
You redeem your accumulated gold plus the scheme benefit. The Golden Tree gives a bonus month on top of your deposits. The Golden Locker gives 0% making charges on your accumulated 22K weight if you redeem in the full benefit window, Day 331 to 365, so you pay only the gold value plus 3% GST. Redeeming earlier gives a reduced benefit.
It is safe when it is run directly by the jeweller with no third party agent, when the jeweller has physical stores and a long track record, and when every deposit is recorded and every redemption comes with a hallmark bill. Londe Jewellers Gold & Diamonds meets all three, running both schemes itself from 4 Nagpur stores with 37+ years of trust since 1989.
