What is a Gold Locker and What Are Its Charges?

27 November, 2024

Synopsis

• Bank lockers offer secure storage with advanced security measures and easy access.

• They allow leveraging stored gold for loans at lower interest rates with flexible terms.

• Consider locker charges and other fees based on bank locker size and location.
  
  

For those seeking a secure place to store their valuable assets, a gold locker in a bank offers a reliable solution. HDFC Bank provides this locker facility across its branches, ensuring the safety of your precious belongings. This article will guide you through everything you need to know about bank locker options, including the charges, usage and key details for gold locker in bank.

What are Gold Lockers?

Gold lockers, also known as bank lockers, are secure storage solutions offered by banks where you can safely keep valuable items like gold jewelry, gemstones, precious items, and important documents. Designed with robust security features, these lockers provide a trusted way to protect your assets from theft or loss, allowing you peace of mind. This article explores the various benefits, usage, and charges associated with gold lockers to help you make an informed decision about securing your valuables."

How Safe Is It to Store Gold in Bank Lockers?

Storing gold in gold lockers (bank locker) can be one of the safest options available. Banks like HDFC Bank utilise advanced security measures, such as CCTV surveillance and reinforced vaults, to ensure that your valuables are well-protected. However, it’s important to note that while your gold is safe, it won’t earn any interest in the locker facility.

How Can You Use the Gold Kept in Gold Lockers/Bank Lockers?

Using a gold locker in a bank secures your gold and allows you to leverage it for financial needs. This makes gold lockers an attractive option for funding education, expanding a business, or handling unexpected emergencies.

Steps on How to Keep Gold in Bank Lockers

To store gold in a gold locker at HDFC Bank, follow these steps:

1. Fill out the Application: Visit your nearest branch and complete the application form with your photograph.

• For existing bank customers:

            >Since KYC is already done, only photographs of the locker holders are required.

            >If PAN details are not available in the bank’s records, submit Form 60.

• For non-HDFC Bank customers:

             >Complete the full KYC process, including identity and address verification.

2. Locker Agreement, Documentation and Allocation: Once a locker is allocated, sign the locker agreement, submit the required documents, and pay the locker rent to use the gold locker. Along with the locker agreement, franking/stamp paper (as per state regulations) must be obtained and signed by all locker holders. All holders must be present during the locker allotment at the branch. For non-individual entities who are existing HDFC Bank customers, the locker will be given in the name of Entity and the following documents are also needed:

   • Board Resolution, Copy of Bye Laws, Letter on the Firm's letterhead mentioning the persons authorized to access the locker and the mode of operation

   • ID proof & photographs of the authorised signatory
     
     

Steps on How to Keep Gold in Bank Lockers

To store gold in a gold locker at HDFC Bank, follow these steps:

1. Fill Out the Application: Visit your nearest branch and complete the application form. Ensure you have a locker agreement in place.

2. Choose the Locker Tenure: Select the tenure for which you need the gold locker. Regular access is recommended to avoid the bank sealing it due to inactivity.

3. Allocation of the Locker: Once a locker is allocated, sign the locker agreement, submit the required documents, and pay the locker rent to use the gold locker.
   
   

Charges

When considering a gold locker in a bank, knowing the charges is crucial. These charges vary depending on the bank locker size and the branch location. A fixed deposit may be required as security (as per RBI guidelines) during locker allotment, with a lien marked on it. The lien amount typically includes:

• Three years of locker rent.

• ₹6,000 to cover break-opening charges, plus applicable taxes (18% GST).

With HDFC Bank, locker charges start from:

Charges can vary across locations and branches. GST will be additional.

Final note

A gold locker provides a secure way to store your gold, protecting it from theft and loss. However, be sure to consider the associated gold locker charges and other locker fees before deciding.

Frequently Asked Questions (FAQs)

What are the benefits of keeping gold in lockers?

Storing gold in gold lockers (also known as bank lockers) provides security and the option to use the stored gold to obtain loans at lower interest rates.

How much gold can I keep in the Locker?

The amount of gold you can store depends on your bank locker size.

Is Gold insured in Bank Locker?

While gold lockers provide relatively high security, it's advisable to check with your bank for specific terms. At HDFC Bank, no insurance is provided on lockers.

What is the Tenure for which I can get a Bank Locker?

Lockers do not have a fixed tenure and are generally let out for a default maximum period of up to 99 years.

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.