This scheme allows you to earn income from gold lying idle in home

According to Bankbazaar, GMS offers security to the gold by not only storing it but also returning it in the form of money or physical gold when the plan attains maturity.

The minimum deposit one can make in GMS is 30 grams of any purity. There is no maximum limit, according to Bankbazaar.

There are 3 term deposit plans available under the GMS:

Short term: 1 to 3 years.

Medium term: 5 to 7 years.

Long term: 12 to 15 years.

For a product that usually remains idle in homes and lockers, the precious metal earns between 0.5 percent to 2.5 percent interest depending on the period of deposit. Short-term deposit rates are decided by the banks concerned, while the medium and long-term deposit interest rates are decided by the government.

One can withdraw the deposit before the end of the tenure by paying a small penalty.

The earnings on the GMS are exempted from capital gains tax, wealth tax, and income tax. Even when the value of the gold deposit appreciates, capital gains tax will not be levied on it or on the interest one earns from it, as per Paisabazaar.