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Can Digital Gold Replace Your Savings Account?

With rising inflation and volatile markets, savers are now rethinking where to park their money. Savings accounts have long been the go-to safe haven. But with digital innovation, digital gold is fast becoming a compelling alternative.

But can it replace a savings account? Or should it only complement one? Let’s explore.

What is Digital Gold?

Digital gold is 24K gold purchased and stored online, backed by real gold in insured vaults. Unlike physical gold, there’s no hassle of storage or purity checks. 

What is a Traditional Savings Account?

A savings account is a deposit facility offered by banks that provides:

  • Safe storage of money

  • Interest income (typically 2.5–4%)

  • Government-backed deposit insurance up to ₹5 lakh (in India)

Digital Gold vs. Savings Account

Feature Savings Account Digital Gold
Returns 2.5–4% (fixed) Market-driven (linked to gold prices)
Inflation Impact May lose value in high inflation Historically acts as an inflation hedge
Liquidity Instant withdrawals Sell or redeem online instantly
Minimum Amount Usually ₹1,000+ As low as ₹10 on InCred Money
Risk Very low (bank regulated) Market volatility; platform dependent
Insurance ₹5 lakh by DICGC (India) Insured physical storage by vault providers
Taxation Interest is taxable LTCG (>3 yrs) taxed at 20% with indexation

 

 

Why is Digital Gold Gaining Popularity?

  • Start Small: Begin investing with as little as ₹10

  • Purity Assured: 24K gold (99.5%+ purity) from verified sources

  • Flexibility: Buy, sell, or convert to jewellery

  • No Locker Fees: Stored in government-certified vaults

  • Anytime Access: 24/7 from your phone or laptop via InCred Money

 A Balanced Approach

Ideal Portfolio Strategy with InCred Money:

  • Keep emergency and short-term funds in a high-interest savings account

  • Allocate 10–20% of surplus savings into digital gold

  • Use InCred Money to automate gold investing monthly, like an SIP

  • Use vault-backed platforms with transparent audit policies

Final Thoughts

Digital gold isn’t a complete replacement for savings accounts but it’s a powerful addition to protect your wealth from inflation, diversify your holdings, and gradually build long-term value.

Save smart. Invest smarter

Ready to go for gold? Start your digital gold journey today on InCred Money.

 

Sources:

 

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