SBI Gold Deposit Scheme: Is it worth it?

By Team Gullak

Nov 21, 2024

3 min read

As of 2023, Indian households are estimated to hold around 21,000 tonnes of gold, surpassing the gold reserves of the World Bank. Despite its appreciating value, much of this gold remains idle in households. To address this, the government introduced the Gold Deposit Scheme to mobilise this dormant wealth. In this article, we will explore the SBI Gold Deposit Scheme, offered by one of India’s leading banks, the State Bank of India (SBI).

SBI Gold Deposit Scheme Overview

SBI Gold Deposit Scheme is basically a Fixed Deposit in Gold. Under the scheme, you can submit the gold in your house, like gold bars or jewellery to SBI and get interest on it. Let’s understand more about the scheme in the sections below:

Who is eligible for the SBI Gold Deposit Scheme?

The below categories are eligible for the SBI Gold Deposit Scheme:

Individuals, singly or jointly
Proprietorship & Partnership firms.
HUFs
Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations
Companies
Charitable institutions
Central Government
State Government or any other entity owned by Central Government or State Government

SBI Gold Deposit Scheme: Returns and Tenure

The SBI Gold Deposit Scheme comes in 3 types:

Short Term Bank Deposit (STBD)-

Tenure: 1 to 3 years

Interest Rate:

For 1 year : 0.50% p.a.

Above 1 year up to 2 years : 0.55% p.a.

Above 2 years up to 3 years : 0.60% p.a.

Medium Term Government Deposit (MTGD)-

Tenure: 5-7 years

Interest Rate: 2.25% p.a.

Long Term Government Deposit (LTGD)-

Tenure: 12-15 years

Interest Rate: 2.50% p.a.

Note: Minimum Deposit for the scheme is of 10 gms

Gullak Gold+: A Way to earn Higher Returns on your Gold

While the Extra 2.5%pa is great, what if there’s a way to earn even higher Returns on your Gold? This is possible with Gullak Gold+!

Gullak Gold+ provides a unique way to earn extra gold on top of your gold’s returns. Basically, you get Extra 5% gold every year with this scheme. Let’s take an example, if you invest 100 gms in Gullak Gold+, in a year it’ll become 105 gms and in 8 years it’ll become 148 gms. All the 148 gms benefit from Gold price increase as well.

Get Extra 5% Gold pa

Invest in Gullak Gold+

Key Features of Gullak Gold+:

Only place you get Extra 5% Gold pa
Highest Returns on Gold: ~18%pa(Gold’s average returns+extra 5%)
Extra gets compounded every year
No tenures & No lock-in periods
One-time investments as well as daily/weekly/monthly SIPs available
Deposits can be withdrawn as cash or gold coins or be redeemed as jewellery in popular jewellery shops

Now that we have a clear understanding of both, Gullak Gold+ and SBI Gold Deposit Scheme, let’s compare the both in the next section.

Table: Gullak Gold+ vs SBI Gold Deposit Scheme

Parameter	Gullak Gold+	SBI Gold Deposit Scheme
Returns	Gold price increase + extra 5% pa	Gold price increase + extra 2.5% pa
Type of Extra Interest	Compound interest	Simple interest
Form of Extra Interest	Gold grams	INR
Lock-in	None	1-7 years or 5-7 years or 12-15 years, depending on the scheme that you choose
Withdraw options	Cash or gold or redeem jewellery at Gullak’s partner stores	Cash or gold

Get Higher Returns than Gold Deposit Schemes

Explore Gullak Gold+

Concluding thoughts on SBI Gold Deposit Scheme

While both SBI Gold Deposit Scheme and Gullak Gold+ are both great ways of investing in Gold, Gullak Gold+ takes Gold investment one step further with the extra 5% Gold pa.

That being said, investors must do their due diligence before choosing any investment decision.

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