GDA has various meanings in the Banking category. Discover the full forms, definitions, and usage contexts of GDA in Banking.
A Gold Deposit Account (GDA) is a specialized banking product that allows customers to deposit gold in the form of coins or bars into a secure account, similar to a traditional savings account but with gold as the asset instead of currency. This type of account is particularly appealing to investors looking to diversify their portfolio or hedge against inflation and currency fluctuations. The bank holds the gold in safekeeping, and the account holder can earn interest based on the current market value of gold, making it a unique blend of investment and savings.
In the banking sector, GDAs are regulated under specific financial guidelines to ensure the security and authenticity of the gold deposited. Customers can typically withdraw their gold in physical form or sell it back to the bank at prevailing market rates. This flexibility, combined with the intrinsic value of gold, makes GDAs a popular choice among both individual and institutional investors. The process of opening a GDA is straightforward, requiring standard identification and compliance with anti-money laundering regulations, making it accessible to a wide range of customers.
BankingLast updated: