SBI’s Revamped Gold Deposit Scheme

Invest and earn in SBI’s Revamped Gold Deposit Scheme, you need to deposit at least 30 grams of gold

  • By investing in it you will get interest up to 2.50% per annum
  • Under the scheme, the customer has to deposit at least 30 grams of gold

There are many people who have amassed a lot of gold by investing in gold. People take a locker in the bank to keep this gold safe. It costs you more. But suppose you get interest on gold kept at home. This is the special thing about the gold monetization scheme. By depositing gold in the bank under this scheme, you can save money as well as save money from locker expenses. Under this scheme, State Bank of India (SBI), the largest bank in the country, runs a revamped gold deposit scheme.

There are 3 categories


SBI has created three categories under this scheme. In the first category gold is deposited for 1-3 years. This is called a short term bank deposit (STBD). The second category is called Medium Turn Bank Deposit (MTGD), with a maturity period of 5 to 7 years. Also, gold can be fixed for 12-15 years under the Long Term Government Deposit (LTGD) category.

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At least 30 grams of gold must be deposited

Under the Revamped Gold Deposit Scheme, the customer has to deposit at least 30 grams of gold. However, no maximum limit has been set for gold deposits. This means that interest can be earned on any amount of gold deposited. Under this scheme, 995 pure gold can be kept in the bank.

Interest can also be taken in gold

After the maturity period of the FD, the customer has two options to withdraw his gold with interest. Either he can take back his own gold or he can take cash equal to the current price of gold. However, withdrawals in the form of gold will be subject to an administrative charge of 0.20%.

Lock-in period remains

There is a lock in period of one year under STBD category. Penalties will be levied on interest rates for withdrawals before the stipulated time after this period. Also, investors under MTGD category can opt out of the scheme at any time after 3 years. However, interest rate penalty will be levied on breaking the scheme before maturity period. Apart from this, gold can be withdrawn after 5 years under LTGD category. There will also be penalties on interest rates.

Under this scheme, the customer does not have to pay property tax on FD gold. Also, loans can be taken on the basis of this FD if required.

Who can invest?

Trusts and companies such as Indian individuals registered with SEBI, proprietorship firms, Hindu Undivided Family (HUF), Mutual Funds / Exchange Traded Funds can invest under this scheme. Gold can only be fixed deposit. Under this scheme, fixed deposit of gold can be made only in selected branches of State Bank at present. These branches include PB Branch New Delhi, SME Branch Chandni Chowk Delhi, Coimbatore Branch, Hyderabad Main Branch, Tyagarai Nagar Branch Chennai, Bullion Branch Mumbai and Bangalore Main Branch.

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The scheme was launched in 2015

The government launched the scheme in 2015. Its purpose is to bring out the gold kept in homes and institutions and make better use of it. Under the Gold Monetization Scheme, the bank will pay you a fixed rate of interest on whatever you deposit in the bank.


Under this scheme, so much gold was collected in the last financial year

SBI had collected 13,212 kg of family and institutional gold by March 2020 through this scheme. According to the report, the country’s largest bank has collected 3,973 kg of gold in the financial year 2019-20.

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