SBI Gold Deposit Scheme

SBI Gold Deposit Scheme: Interest Rate, Tenure and Other Detail

If we talk about a gold deposit scheme that has created quite a buzz, we should mention the SBI gold deposit scheme introduced by the State Bank of India. Are you curious about this Gold Deposit Scheme? If yes, then we are here to let you know more about the scheme here in this blog. Let’s get started then!

What is SBI Gold Deposit Scheme?

The State Bank of India has come with the Revamped Gold Deposit Scheme( R-GDS), a Fixed Deposit scheme in Gold. In this Gold Deposit Scheme, the customers can deposit their idle Gold to earn interest from the bank.

The bank will provide safety and interest earnings to the customers. The bank will accept Gold in gold bars, coins, and jewelry that excludes metals and stones. With the help of the scheme, you can mobilize the idle Gold and use it productively for earning.

Customers interested in the SBI Gold Deposit Scheme can submit application forms along with address proof, identity proof, and inventory form.

What are the Eligibility Criteria?

If you are wondering that what is the criteria eligibility for the SBI gold deposit scheme, then here are a few points associated with eligibility criteria that you need to know:

  • A Resident of India of categories such as proprietorship partnership firms and individuals can apply for the scheme.
  • Hindu undivided families can apply for the scheme.
  • Trusts with SEBI regulations registered Mutual Funds or exchange-traded funds, and companies can also apply for R-GDS.

Types of Deposit under the SBI Gold Deposit Scheme:

SBI has introduced three types of gold deposit schemes under the SBI’s R-GDS. They are:

Short Term Bank deposit:

STBD is a type of deposit that tenures for about a minimum of one year to a maximum of three years. In terms of premature withdrawal, this type of deposit allows you to opt for sudden withdrawal after one year of the lock-in period. You can withdraw the amount at an applicable interest rate.

Medium Term Government Deposit:

In MTGD, the minimum tenure is about five years to a maximum of 7 years. The bank accepts the deposit on behalf of the central government. In terms of premature withdrawal, this type of deposit allows you to opt for premature withdrawal after three years with a penalty on the interest.

Long Term Government Deposit:

LTGD is a type of Gold Deposit Scheme. It has a minimum tenure of about 12 years for a maximum of 15 years—the Bank deposit on behalf of the central government. In terms of premature withdrawal, this type of deposit allows you to opt-out of the early withdrawal after five years with the penalty on interest as per RBI rules and regulations.

Let us throw some light on different points of the SBI Gold Deposit Scheme here:


So how much Gold should one deposit get the benefit out of the Gold Deposit Scheme? As per the rules and regulations of SBI, a customer should deposit a minimum of about 30 grams of 995 finesse Gold. Customers can deposit the Gold in the form of jewelry, gold bars, or gold coins.

When it comes to the limit of depositing the Gold, then there is no maximum limit for the deposit. You should keep in mind to exclude stones and other metals jewelry as these types of jewelry are not accepted under the scheme.


Rate of Interest and payment under the scheme:

The most important part of the scheme is knowing about the rate of interest and the payment you will receive.

  • Under the Short Term Bank deposit, you will get an interest of about 0.50 % per annum for a year. Similarly, the scheme offers a rate of interest of about 0.55 % for two years and 0.60 % for three years.
  • Under the Medium Term Government Deposit, you will get an interest of 2.25 % per annum for 5-7 years tenure.
  • Under the Long Term Government Deposit, you will get an interest of 2.50 % per annum for 12 to 15 years of tenure.

The scheme’s interest shall be paid in rupees why the principle of the amount will be denominated in Gold. The interest rate shall be paid annually or cumulative interest on the maturity of the scheme.


 So now the question is: What are the minimum and maximum tenure of the SBI Gold Deposit Scheme? It is quite a flexible scheme for tenure as it is short, medium, and long-term.

The minimum duration of the tenure starts from 1 year to a maximum of 15 years. You can choose a deposit scheme as per your requirements.

Premature Payment and Repayment:

The most important question that you might be asking yourself that how are you going to get paid? Under the scheme, it has two options of repayment of principal: in Gold or equivalent rupees on the scheme’s maturity.

Under the Medium-Term Gold Deposit and Long Term Gold Deposit, you will get paid in Gold or rupees equivalent to the value of the Gold that you have deposited and then the prevailing price of Gold. However, the bank may charge 0.20% administrative charges in case of redemption in Gold.

When it comes to premature withdrawal, the bank may charge a penalty on interest after three years and five years in the MTGD and LTGD, respectively. However, in STBD, the bank allows premature payment after a lock-in period of one year with a penalty. The penalty applies to the applicable interest rates.


If you are curious about the nominations facility of this gold deposit scheme, then the scheme allows the nomination facility. The nominee for the account in a single name is for an individual capacity.

So here we are at the end of this blog; we hope that you have enough information about the SBI Gold Deposit Scheme by now. The scheme is similar to the Fixed deposit scheme in Gold, and you can earn fixed interest on the gold assets you have with the help of the scheme. If you are interested in the, you can visit the SBI website or bank for further details.

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