Gold Savings Scheme: Explore the Top Gold Investment Schemes by Jewelers and Banks in India

Home » Personal Finance » Gold Savings Scheme: Explore the Top Gold Investment Schemes by Jewelers and Banks in India

Gold is a popular investment in India because it’s easy to sell and stays valuable even when the economy isn’t doing well. But buying gold can be tough for most of the people. Thus comes the gold savings scheme.

A lot of jewellery stores in India offer gold investment schemes. Their goal is to make it easier and more affordable for people to buy gold. In this blog, we’ll look into the concept of the gold savings scheme in India, compare the gold investment schemes by banks and jewellery stores, and see how these best gold savings schemes make getting gold more affordable for everyone.

What is Gold Savings Scheme?

Gold Savings Scheme is one of the most attractive gold investment choices in India. The core idea centres around a consistent gold monthly investment. By engaging in gold savings schemes, your ongoing monthly investments gradually accumulate. As the year concludes, the sum of these investments enables you to purchase the gold of your choice, aligning with the total accumulated amount.

A gold savings scheme works like a monthly savings plan but with a slight twist – instead of getting interest, you get to buy gold in the end. You spend a certain amount of money every month for a set time. When that time is up, you can use the total amount to buy gold from the jeweller. But unlike regular savings, you don’t earn interest. To make up for that, the jeweller often gives you a bonus, which can be either way, they might give you a discount on the total bill or waive off your last month’s instalment.

Exploring Top Gold Schemes in India 

These schemes allow you to save money in the form of gold, either by buying physical gold or investing in gold-related instruments. Here are some of the best gold schemes in India:

Gold Schemes by Jewellers

1.     Tanishq Golden Harvest

2.     Kalyan Jewellers Yearly Gold Savings Scheme

3.     Malabar Gold Investment Scheme

4.     Bhima Jewellery’s Golden Key EMA Plan

5.     Jos Alukkas’ Easy Buy Gold Purchase Plan

Gold Schemes by Banks

1.     Gold Monetisation Scheme (GMS)

2.     Sovereign Gold Bond Scheme

3.     Gold Coin and Bullion Scheme

Gold Investment Schemes By Jewellers

Tanishq Golden Harvest

Tanishq Golden Harvest is a smart, secure, and convenient gold savings scheme that allows you to own the Tanishq jewellery you desire. This plan enables you to buy more than what you pay for, as Tanishq adds a special discount upon maturity.

With the Golden Harvest – 10 Months plan, you can open an account online through the website or app or by visiting your nearest Tanishq showroom. Payment options include monthly instalments through cash, card, online banking (using SI or ACH), or post-dated cheque facilities.

For 10 months, you need to pay a fixed instalment amount on the due date, with a minimum value of INR 2000, and it can go up to multiples of INR 1000.

After 10 months, you become qualified for an impressive discount of up to 75% of the first instalment value paid. This makes Tanishq Golden Harvest a great gold investment scheme by a jeweller.

Kalyan Jewellers Yearly Gold Savings Scheme

This 12-month gold monthly investment scheme plan allows you to buy gold or even diamond jewellery by making monthly payments for a period of 12 months. The monthly instalment can be worth any amount between Rs. 500 to Rs. 40000, depending on the jewellery chosen at the beginning of the scheme.

Malabar Gold Investment Scheme

Malabar Gold and Diamonds, a prominent jewellery manufacturing company in India, has introduced the Smart Gold investment scheme. This unique scheme empowers customers to place an order for their desired ornament, whether it’s in stock or out of stock, by paying a nominal advance amount.

Here are some of the gold saving scheme plans offered: 

Malabar Golden Bloom Buy Plan 

Make 11 easy instalments and, in the end, purchase the gold of your choice with an exemption on making charges up to 18 per cent.

Malabar Golden Bliss Advance Gold Purchase Plan

Secure your golden future with the Golden Bliss Advance Gold Purchase Plan! Book jewellery 11 months in advance, pay no making charges on final purchase and enjoy exemptions up to 18%. 

Malabar Golden Golden Glow 

With Golden Glow, pay 11 easy instalments, accumulate gold, and purchase jewellery equal to the accumulated weight without making charges, with exemptions up to 14%.

Bhima Jewellery’s New Gold Savings Schemes

One of the top gold savings schemes in India, here you can enroll for 11 months. You can join the Golden Key EMA plan by paying a minimum of Rs. 5,000 every month. You can choose to contribute more in multiples of a thousand. At the end of the 11th month, you can redeem the total amount on and enjoy full benefits. Plus, for every Rs. 8,000 enrollment, you get a free gold coin.

This gold monthly investment scheme lets you buy BIS Hallmarked 22-karat Gold Jewellery or Gold Coins with the added benefit of no extra charges. Remember, GST is applicable.

Note: This exclusive Jewellery Purchase Plan is an online gold savings scheme. You can enrol and redeem through

  • You can choose from a wide range of options on their website and have your jewellery securely shipped to your home. 
  • Alternatively, you can opt for video shopping, where their experts guide you through a collection based on your preferences and help you securely redeem your scheme.

Jos Alukkas’ Easy Buy Gold Purchase Plan

It is an online gold savings scheme. To join, you need to sign up for the plan and make your payments online, ranging from Rs. 1000 to Rs. 1 lakh. Subscribers have to make 12 monthly payments before they can purchase the gold, following the scheme’s rules. After completing all 12 instalments, individuals become eligible for a scheme promotion discount, which is an extra incentive for the plan.

How do Gold Schemes by Jewellers in India Work?

Jewellers in India provide diverse gold-saving schemes, each offering unique benefits:

  1. Make Fixed Monthly Payment Scheme: Pay a fixed amount every month, and the jeweller adds an extra instalment. At the scheme’s end, use the accumulated money to buy gold jewellery from the same jeweller.
  2. Gold Coin Purchase Scheme: The invested amount can be used to buy gold coins, but cash redemption is not an option under this scheme.
  3. Benefit from Discount Schemes: Some jewellers offer discounts on making charges, wastage, or even a complete waiver as part of their gold-saving schemes.

Things to Remember While Choosing Gold Savings Scheme By Jeweller

You must consider these factors:

1. Select a reputable jeweller, and make sure to read their reviews and market reputation. 

2. Ensure you check the gold jewellery that could be bought at the expiration of your gold savings scheme.

3. Understand the scheme thoroughly to uncover hidden advantages and be aware of exit clauses in case you need to opt-out before maturity without losses.

4. Always invest in hallmarked jewellery to ensure purity as promised. 

Choosing the right jeweller and understanding the details of the gold investment scheme details are crucial steps in making the most of your chosen gold-saving scheme.

Gold Schemes by Banks in India

In 2015, Gold Schemes were introduced in the budget to encourage people to save or deposit their unused gold in banks. This gold could then be lent to jewellers or used for other purposes, reducing the need to spend foreign reserves on gold imports.

Narendra Modi, India’s Prime Minister, introduced three gold saving schemes: the Gold Monetisation Scheme (GMS), the Sovereign Gold Bond Scheme, and the Gold Coin and Bullion Scheme.

Gold Monetisation Scheme (GMS)

The Gold Monetization Scheme is a government initiative motivating individuals, households, and institutions to deposit idle gold with authorised banks. Deposited gold is lent to jewellers, and depositors earn interest on their gold holdings. This scheme provides an appealing alternative to storing gold idly, enabling individuals to earn returns on their gold investments without selling the precious metal. 

Types of Gold Deposit under the Gold Monetization Scheme

Short-term Bank Deposit (STBD):

STBD allows individuals to deposit gold for 1 to 3 years. The deposited gold addresses temporary jewellery demand. At the deposit’s end, depositors receive their gold in bars or coins with accrued interest. STBD interest rates, set by banks, may vary based on the deposit duration.

Medium- and Long-Term Government Deposit (MLTGD):

MLTGD lets individuals deposit gold for 5 to 7 or 12 to 15 years. Gold in MLTGD fulfils the country’s domestic gold needs, including jewellery. Government-fixed interest rates for MLTGD are subject to periodic revisions.

PNB Gold Schemes 

These schemes are offered by Punjab National Bank, one of the largest public sector banks in India. These schemes include PNB Gold Loan Scheme, PNB Gold Deposit Scheme, and PNB Gold Card Scheme. 

  • The PNB Gold Loan Scheme allows you to avail of a loan against your gold jewellery or coins at attractive interest rates and flexible repayment options. 
  • The PNB Gold Deposit Scheme allows you to deposit your gold with PNB and earn interest on it. The interest rate varies depending on the tenure of the deposit, which can range from six months to seven years. The interest is paid in the form of cash or gold. 
  • The PNB Gold Card Scheme allows you to get a gold credit card from PNB that offers various benefits and discounts on gold purchases.

Sovereign Gold Bond Scheme

RBI issues gold bonds denominated in grams on behalf of the Indian government. The bond tenure is up to 8 years, with an option to exit in the 5th year. 

The Bond requires a minimum investment of one gram, and there are subscription limits of 4 kilos for individuals, 4 kilos for Hindu Undivided Family (HUF), and 20 kilos for trusts and such similar entities, as notified by the government on a fiscal year basis (April – March).

ICICI Sovereign Gold Bonds Savings Scheme (SGBs)

These are a great way to invest in gold without buying physical gold. These bonds, issued by the Indian government, let you make money as the value of the bonds increases and also earn interest each year. They help avoid risks linked with physical gold.

For tax, if you sell these bonds, you won’t pay capital gains tax. Long-term gains from selling the bond also get benefits. You can trade these bonds on the stock exchange soon after they are issued, as directed by the RBI. 

The latest tranche of SGBs (2023-24 Series II) was open for subscription from September 11 to September 15, 2023. The issue price per gram of gold is Rs. 5,923 for offline applications and Rs. 5,873 for online applications. 

  • The bonds last for eight years, but you can choose to exit after the fifth year. 
  • They offer a fixed interest rate of 2.5% per year on your initial investment, and when the bonds mature, the value is based on the current gold price. 
  • Plus, these bonds come with tax benefits under the Income Tax Act.

SBI Gold Savings Scheme

SBI gold sovereign bond scheme is a way of investing in gold without buying physical gold. It is a part of the sovereign gold bond scheme issued by the Reserve Bank of India on behalf of the Government of India. 

SBI offers the following benefits and features to its customers who want to invest in this scheme. Notably, this scheme provides tax exemptions on both the interest income and capital gains from the gold deposit.

  • Applicants eligible for this scheme include individuals, including minors with a guardian, HUFs, Trusts, Universities, and Charitable Institutions. 
  • The application process involves standard KYC documentation such as Voter ID, Aadhaar card/PAN or TAN/Passport. 
  • The bonds are denominated in grams, with the smallest unit being 1 gram, and have a tenure of eight years, with the option to exit in the 5th year.

Gold Coin and Bullion Scheme

The government issues gold coins initially in 5g & 10g and later in 20g bars. These are the first-ever national gold coins with the Ashok Chakra engraved on them.

How do Gold Scheme by Banks Work in India

  1. Depositors get approval for the gold they want to deposit from certified collection centres.
  2. The approved gold is deposited after verification of its purity.
  3. Collection centres send the deposited gold to refineries for melting, with customer consent.
  4. A certificate for the deposited gold is issued, which can be provided to the bank to open a Gold Savings Account.
  5. Refineries store the gold at a mutually agreed fee with the bank, with no charges for customers.

Gold Scheme Benefits

Gold savings schemes allow you to save money in the form of gold, either by buying physical gold or investing in gold-related instruments. 

•  Gold saving schemes help you in portfolio diversification and protect your investments during times of inflation and currency fluctuations. This is possible because gold is a valuable and durable asset that can withstand economic shocks and crises.

•  Gold investment schemes by jewellers allow you to buy gold jewellery or coins at a discounted rate, depending on your chosen scheme. 

•  You can avail of the tax benefits on some gold saving schemes, such as the Sovereign Gold Bond Scheme and the Gold Monetisation Scheme, which provide tax exemptions on the interest income and the capital gains from the investment.

•  They provide flexibility and convenience, as you can choose the amount, tenure, and mode of payment as per your preference and budget

 FAQs| Gold Schemes in India

Which one is the best gold-saving scheme?

Selecting the best gold-saving scheme depends on individual preferences. You must take into account factors like minimum contribution, scheme tenure, discounts, flexibility, and gold quality.

What is the government’s gold-saving scheme?

The government of India offers three gold-saving schemes:
– Sovereign Gold Bond Scheme: Government-issued bonds with fixed interest.
– Gold Monetisation Scheme: Deposit idle gold for interest or gold returns.
– Gold Coin and Bullion Scheme: Purchase government-issued coins and bullions for investment.

What is the GRT 11 month gold scheme?

GRT Jewellers’ 11-month gold scheme allows a minimum monthly contribution of Rs. 500 for 11 months. In the 12th month, the accumulated amount can be used to purchase jewellery. A full refund is provided if no jewellery is purchased at the end of the tenure.

What is gold savings?

Gold savings involve saving money in gold through physical or gold-related instruments. It helps diversify portfolios, hedge against inflation, and preserve wealth for long-term goals like education, home buying, or retirement planning.

Do gold savings schemes have tax benefits?

Yes, some gold savings schemes offer tax benefits. For example, the Sovereign Gold Bond Scheme exempts interest income and capital gains. The Gold Monetisation Scheme also offers tax benefits. However, consulting a tax expert is crucial, as not all gold savings schemes may provide such benefits.


Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.