SBI Gold Deposit Scheme: Get Regular Income From Your Gold

SBI Gold deposit Scheme is there to give you recurring income while original gold will remain intact. Of course from this income you can buy more gold as well. In either words when you put your gold in this scheme it starts to grow. The SBI gold deposit scheme is superseded by the Gold Monetization scheme. This scheme is more flexible and gives better interest.

SBI Gold Deposit scheme accepts all types of gold whether it is jewelry or bullion. The scheme will give interest on the pure gold irrespective of the form

Should I Deposit The Jewelry?

You can deposit the gold jewelry in Gold deposit scheme, But you should beaware that the gold deposited to this scheme is subjected to the melting. Hence, it is not advisable to deposit those jewelry which are used. Instead, you should deposit the idle gold. You can deposit those jewelry which are old fashioned and kept as an asset.

Must Read: Gold Bond Gives more Profit than physical gold

Why Should I Deposit in SBI Gold Deposit Scheme?

Depositing your idle jewelry in SBI Gold Deposit Scheme will give you many benefits.

  • Peace of mind. You need not to be concerned about its safety. Not threat of burglary or stealing.
  • You will get the interest for nothing.
  • Your gold will get tested and you will get pure gold after that. No melting assaying charge.
  • You will save the locker charge.
  • You will serve the nation by reducing the import bill.

Tax Benefits of SBI Gold Deposit Scheme

  • No income tax on the interest from this scheme
  • No capital gain tax if you take back cash instead of the gold after the maturity.
  • You will not be charged wealth tax for the deposited gold.

Will Your Gold Stay Safe?

Your gold deposit will be as safe as your money in the bank. Actually banks do not put all the gold in its safe instead major chunk of the gold is given to jewelers as loan or it remains in RBI mint. Bank gets interest over it and pays the majority of this to the depositor.

What interest rate will I earn?

Interest rate is not very lucrative in SBI Gold Deposit Scheme. It is from 0.75% to 1%. Don’t frown; you get nothing when you keep your gold in home. As well this interest is in gold currency. This simply means that if you deposit 1 Kg Gold the bank will give price of 10 gram gold (1% of 1 Kg) after one year. Assume gold price doubles in one year then effectively you are getting 2% interest rate.

Also don’t forget to add your expense of locker.

Why Interest Rate is so low?

Gold do not produce anything itself such as farm land.

People don’t take gold jewelry on rent such as property.

You will get your whole gold with all the appreciated value.

What are the restrictions?

 Now government has eased the restrictions from SBI Gold Deposit Scheme. The most important is the reduction of minimum tenure. Now you can deposit your gold for 6 months as well. Earlier the minimum tenure was 3 years.

You have to deposit more than 500 gram of the gold for this scheme. This is a major deterrent. Hopefully government will give some relaxation in weight also. The Gold Monetization Scheme has the minimum limit of 30 gram only.

What will I do if I need fund for exigency?

You can take loan from any branch of the SBI by mortgaging your gold deposit certificate. It same as you take loan by depositing your FD certificate. Loan can be taken up to the 75% of the gold value. Interest rate will be lower than the personal loan.

Where should I Deposit My Gold ?

Not all banks provide Gold Deposit Scheme. Till now only SBI this scheme and at the designated branches only. But now RBI has given permission to the banks to start Gold Deposit scheme on its own. Banks do not need prior permission. So in future You can expect that more banks will start this scheme.

What is the procedure of SBI Gold Deposit Scheme?

Go to your nearest branch with your ornaments or gold bar biscuits etc. Bank will take the gold and give you the provisional certificate. Bank will send the gold to the reserve bank gold mint. Purity of the gold will be determined there and it is melted. According to the purity the weight of the gold will be fixed. After that Bank will give you the Final certificate. You can demand standard certificates of 500 gm, 1000 gm or 2000 gm also. Either you can opt for statement or passbook also. Note often it may happen that actual weight of the gold becomes less because of impurity. Don’t fret, you must rely on RBI.

How Will I Get Back My Gold?

After Completion of the tenure you can claim your gold with the interest. For the Interest you have the option of cumulative and non cumulative.

Either you can take the cash instead of the gold. No capital gain tax will be charged in this amount.

How can I check that Gold returned is pure?

Gold returned will 0.999 finesse pure, certified by RBI Mint.  It is the purest form of the gold. It will be in bar form.

How Gold Deposit Scheme Works

Banks give your gold to the jewelers on loan. Bank earns interest on it. Major part of the interest is given to the customer.SBI gold deposit scheme flowchart


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  • Divya Chandran

    Hi Chandrakant,500 gms of minimum gold, is this should be the weight of ornament or for the melted gold?Is there any chance that SBI will reduce the minimum quantity from 500gm?

    • Chandrakant Mishra

      Hi Divya

      Please Wait for some weeks. Government is coming with new gold monetisation scheme. It has relaxed norms.


  • John

    Now I heard that the minimum amount to be deposited is 30 fm

    • Chandrakant Mishra

      Thank Nil Rudra

  • jubila fernando

    What is the minimum amt of gold deposit?

    • Chandrakant Mishra

      Hi Jubila

      You have to deposit gold of more than 500 grams.


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    • shikha gupta

      dear i think u don’t read the above para clearly it should be 500g (1kg)

    • Kathirvel

      30 grams of gold minimum