Gold Savings Scheme
Written by Mariyam Sara
3 min read | Updated on October 17, 2025, 13:24 IST
What is a Gold Savings Scheme?
Types of Gold Savings Schemes and how they work.
Difference between Jeweler and Financial Gold Savings Scheme
How to Choose the Right Gold Savings Scheme
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For centuries, Indians have bought gold in the form of jewellery, coins, bars, and artefacts, but today you can buy gold digitally and physically. The government launched the Gold Savings Scheme plan in 2015 to promote investments in gold. The Scheme opened doors to a new and innovative way of investing in gold.
In this blog, you will understand what the Gold Savings Scheme is all about, how it works, and its types.
What is a Gold Savings Scheme?
The Gold Savings Scheme is a financial plan that allows you to buy gold or invest in gold by paying small amounts regularly over a fixed period of time. Earlier, if you wanted to buy gold, you’d have to pay a lump sum amount. This scheme provides a systematic payment approach that lessens your financial burden of buying gold.
Types of Gold Savings Schemes and how they work.
There are two types of Gold Savings Schemes,
Jeweler Gold Schemes
This scheme is designed for customers planning to purchase gold jewellery in the future. Under this scheme, you pay a fixed amount every month to the jeweler for a fixed period of time. At maturity, you can use the total amount deposited with the jeweler to buy gold jewellery or coins.
The jeweler might offer some incentives to customers, such as a bonus instalment, reduced making charges, or discounts on the purchase.
Financial Gold Scheme
Financial Gold Schemes are regulated by the Reserve Bank of India (RBI) and Securities Board of India (SEBI) and allow you to invest in gold digitally. You can invest in the following securities,
- Sovereign Gold Bonds (SGBs)
SGBs are issued by the government via the RBI, which allows investors to buy bonds in the denomination of grams of gold. The bond certificates represent grams of gold. You need to have a minimum investment equivalent to one gram of gold, and you earn interest on the investment as well as enjoy capital appreciation as gold prices rise.
- Gold ETFs
Gold ETFs, Exchange Traded Fund, are a type of mutual fund that invests specifically in gold, gold futures contracts, and companies involved in gold production. Gold ETFs are regulated by the Securities Exchange Board of India.
- Gold Mutual Funds
Gold Mutual funds are a fund of funds that pool the investor’s money and invest in Gold ETFs, backed by physical gold. You can invest in Gold Mutual funds through a Systematic Investment Plan (SIP).
Difference between Jeweler and Financial Gold Savings Scheme
Here are the key differences between Jeweler and Financial Gold Savings Schemes,
| Features | Jeweler Savings Scheme | Financial Savings Scheme |
|---|---|---|
| Regulated by | Not regulated by any authority | Regulated by RBI and SEBI |
| Interest | No interest earned on investments | Interest earned only on SGBs; capital appreciation from SGBs, Gold ETFs, Mutual Funds |
| Form | Physical gold (jewellery or coins) | Digital/paper form (SGBs, Gold ETFs, Gold Mutual Funds) |
| Purpose | To purchase jewellery | Capital appreciation and returns from gold investments |
How to Choose the Right Gold Savings Scheme
Factors to consider when choosing the right Gold Savings Scheme for you,
- Purpose
Before selecting a scheme, first decide whether you want to possess gold in physical form, like coins or jewellery, or prefer to have it in digital form.
- Liquidity
Gold, Gold Mutual funds and Gold ETFs can be easily converted to cash, but SGBs have a lock-in period of 5 Years. So pick a scheme that meets your liquidity requirements.
- Credibility of the provider
Select a scheme where you are assured of the provider’s credibility.
- Hidden charges
Compare additional charges and taxes applicable to the scheme to make a sound investment decision.
Understanding different gold savings schemes helps you make informed investment decisions based on your end goals.
To learn more about sovereign gold bonds, Gold ETFs and Gold Mutual funds, sign up on UpLearn by Upstox today!
About Author
Mariyam Sara
Sub-Editor
holds an MBA in Finance and is a true Finance Fanatic. She writes extensively on all things finance whether it’s stock trading, personal finance, or insurance, chances are she’s covered it. When she’s not writing, she’s busy pursuing NISM certifications, experimenting with new baking recipes.
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