March 27, 2026

Best Gold Savings Schemes in India 2023 by Banks & Jewellery

Gold is one of the most preferred investment vehicles for investors in the country. This is due to reasons such as high liquidity and the ability to withstand economic upheavals such as inflation. However, it can be difficult for most individuals to possess large amount of gold at once. This is why gold savings scheme can be beneficial.
These gold schemes are usually offered by various banks and jewellers.

What Is a Gold Savings Scheme?

A gold savings scheme works in a simple manner. You deposit a certain amount of money at regular intervals to a jeweller. At the end of tenure, you get to buy an amount of gold that is equal to the money accumulated in that period.
However, you won’t get any interest on this accumulated amount. To make up for this, the jewellers offer some discount such as the waiving off the last instalment. They might also pay off the last instalment as a bonus or cash incentive.
Let’s understand this with the help of the following illustration:
Suppose Mrs. Verma makes a monthly deposit of ₹5000 towards a gold savings scheme. The scheme has a tenure of 12 months. As per the bank’s policy, it will give a 100% discount on the last instalment.
So, the total amount Mrs. Verma has to pay will be, (5000X11)= ₹55,000.
However, the bank will pay the last instalment, making the total investment worth ₹ 60,000. Now she can purchase gold worth ₹60,000 from the jeweller while she actually deposited ₹55,000.

Gold Schemes Offered by Banks

The Indian Government launched three gold deposit schemes in the Union Budget of 2015. This was aimed at increasing deposit of gold that is lying idle. You can deposit unused gold to banks and they will offer an interest to you.
With these schemes, you can deposit and invest in gold easily. The three gold schemes include SGB or Sovereign Gold Bond, Gold Monetisation Scheme and Gold Coin and Bullion Scheme.

What Are the Features & Benefits of Gold Schemes?

Following are the features and benefits of a gold savings scheme:
  • The deposit period can be 3, 4, or 5 years
  • You can start investing with a minimum of 500gm. There is no cap on the upper limit.
  • You can deposit gold in any form such as gold bar, coins or jewellery.
  • You will receive a Gold Deposit Certificate from the Nodal Branch after the Indian Government melt, assay and mint it.
  • One individual can possess a maximum of 5 such certificates issued.
  • You will receive the Gold Deposit Certificate within 90 days from the deposit.
  • Depositors have the nomination facility available in single names.
  • If you want to transfer your scheme, it can be done by endorsement or delivery. You need to notify the Nodal Branch about this transfer.
  • You can either take repayment of the principal amount or equivalent gold as applicable on the day of maturity.
  • Premature withdrawal is applicable after the lock-in period of 1 year. However, a penalty will be applicable.
  • You can renew the scheme after its maturity.
  • You can avail loan facility of 75% of the notional value of gold at any SBI branch.
  • There are tax benefits available under Income Tax, Capital Gains Tax and Wealth Tax for this scheme.

What Are the Eligibility Criteria for Gold Savings Scheme?

In order to be eligible for gold savings scheme, you have to satisfy the following criteria:
  • You have to be a resident of India
  • You need to belong to a HUF (Hindu Undivided Family)
  • Any trust, company or individual can opt for this scheme.

What Are Some of the Top Gold Savings Schemes in India?

Here are some of the top gold savings schemes in India you can consider choosing from for investing:

Tanishq Golden Harvest Scheme

Under the Tanishq Golden Harvest Scheme, you can invest money for a period of 6 to 10 months. After maturity, you can use this amount to purchase gold jewellery of the same amount with a discount of up to 75%.

Kalyan Jewellers Gold Schemes

You can start investing in Kalyan Jewellers Gold Schemes with a minimum amount of ₹500, which can go up to ₹40,000. This instalment amount depends on the jewellery chosen at the beginning of the scheme. Deposit tenure is of 12 months and you can close the scheme by purchasing the jewellery selected. You can also invest in behalf of minors.

Malabar Gold & Diamonds Smart Buy Scheme

Malabar Gold & Diamonds Smart Buy Scheme allows depositors to save money while purchasing jewellery at a discounted rate. You can choose from the products which are available as well as from out-of-stock products. For out-of-stock orders, you need to place orders for a pre-decided date. You can also place orders for customised products with Smart Buy + Customize Option. Moreover, you can opt for 14 days return policy for available and ready to deliver products.

ICICI Gold Monetization Scheme

Under this scheme, you can earn interest on gold you have deposited to bank. The minimum deposit tenure can be of 3 years, which can be extended up to 15 years. The minimum gold deposit limit is 30gm. You need to be above 18 years of age to invest in this scheme.

SBI Gold Coins

Investors can purchase SBI Gold Coins at any SBI branch. Denominations are available from 2 to 50 grams. Any individual or organisation can invest in SBI Gold Coins Scheme.

RBI Sovereign Gold Bond Scheme 2018

This RBI Scheme enables any individual or organisation to invest in gold in multiples of 1 gram. However, the maximum limit of investment for HUFs is 4kg and for organisations, it is 20kgs. You can invest for a maximum period of 8 years with a lock-in period of 5 years. The applicable interest rate is 2.5% per annum.

Final Word

Gold savings schemes are like recurring deposits but in gold. These schemes are aimed at mobilising idle gold present in the country and reducing dependency on foreign gold imports.

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