diff --git a/packages/backend/app/db/savings_schema.sql b/packages/backend/app/db/savings_schema.sql
new file mode 100644
index 000000000..fd638be1f
--- /dev/null
+++ b/packages/backend/app/db/savings_schema.sql
@@ -0,0 +1,39 @@
+-- FinMind Savings Goals Database Schema
+DO $$ BEGIN
+    CREATE TYPE goal_status AS ENUM ('active', 'completed', 'cancelled');
+EXCEPTION WHEN duplicate_object THEN NULL;
+END $$;
+
+CREATE TABLE IF NOT EXISTS savings_goals (
+    id SERIAL PRIMARY KEY,
+    user_id INT NOT NULL REFERENCES users(id) ON DELETE CASCADE,
+    name VARCHAR(200) NOT NULL,
+    target_amount NUMERIC(12, 2) NOT NULL CHECK (target_amount > 0),
+    current_amount NUMERIC(12, 2) NOT NULL DEFAULT 0 CHECK (current_amount >= 0),
+    currency VARCHAR(10) NOT NULL DEFAULT 'INR',
+    deadline DATE,
+    status goal_status NOT NULL DEFAULT 'active',
+    description VARCHAR(500),
+    created_at TIMESTAMP NOT NULL DEFAULT NOW(),
+    updated_at TIMESTAMP NOT NULL DEFAULT NOW()
+);
+CREATE INDEX IF NOT EXISTS idx_savings_goals_user_status ON savings_goals(user_id, status);
+CREATE INDEX IF NOT EXISTS idx_savings_goals_user_deadline ON savings_goals(user_id, deadline);
+
+CREATE TABLE IF NOT EXISTS savings_contributions (
+    id SERIAL PRIMARY KEY,
+    goal_id INT NOT NULL REFERENCES savings_goals(id) ON DELETE CASCADE,
+    amount NUMERIC(12, 2) NOT NULL CHECK (amount > 0),
+    currency VARCHAR(10) NOT NULL DEFAULT 'INR',
+    note VARCHAR(500),
+    created_at TIMESTAMP NOT NULL DEFAULT NOW()
+);
+CREATE INDEX IF NOT EXISTS idx_contributions_goal_created ON savings_contributions(goal_id, created_at DESC);
+
+CREATE TABLE IF NOT EXISTS savings_milestones (
+    id SERIAL PRIMARY KEY,
+    goal_id INT NOT NULL REFERENCES savings_goals(id) ON DELETE CASCADE,
+    percentage INT NOT NULL CHECK (percentage IN (25, 50, 75, 100)),
+    achieved_at TIMESTAMP
+);
+CREATE INDEX IF NOT EXISTS idx_milestones_goal_pct ON savings_milestones(goal_id, percentage);
diff --git a/packages/backend/app/models.py b/packages/backend/app/models.py
index 64d448104..56b5d941b 100644
--- a/packages/backend/app/models.py
+++ b/packages/backend/app/models.py
@@ -133,3 +133,149 @@ class AuditLog(db.Model):
     user_id = db.Column(db.Integer, db.ForeignKey("users.id"), nullable=True)
     action = db.Column(db.String(100), nullable=False)
     created_at = db.Column(db.DateTime, default=datetime.utcnow, nullable=False)
+
+
+# ============== Savings Goal Models ==============
+from datetime import datetime
+from enum import Enum
+from decimal import Decimal
+from sqlalchemy import Enum as SAEnum, Index, CheckConstraint
+from .extensions import db
+
+
+class GoalStatus(str, Enum):
+    ACTIVE = "active"
+    COMPLETED = "completed"
+    CANCELLED = "cancelled"
+
+
+class SavingsGoal(db.Model):
+    """User savings goal"""
+    __tablename__ = "savings_goals"
+
+    id = db.Column(db.Integer, primary_key=True)
+    user_id = db.Column(db.Integer, db.ForeignKey("users.id"), nullable=False)
+    name = db.Column(db.String(200), nullable=False)
+    target_amount = db.Column(db.Numeric(12, 2), nullable=False)
+    current_amount = db.Column(db.Numeric(12, 2), default=Decimal("0"), nullable=False)
+    currency = db.Column(db.String(10), default="INR", nullable=False)
+    deadline = db.Column(db.Date, nullable=True)
+    status = db.Column(SAEnum(GoalStatus), default=GoalStatus.ACTIVE, nullable=False)
+    description = db.Column(db.String(500), nullable=True)
+    created_at = db.Column(db.DateTime, default=datetime.utcnow, nullable=False)
+    updated_at = db.Column(db.DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False)
+
+    contributions = db.relationship("SavingsContribution", back_populates="goal", lazy="dynamic", cascade="all, delete-orphan")
+    milestones = db.relationship("SavingsMilestone", back_populates="goal", lazy="dynamic", cascade="all, delete-orphan")
+
+    __table_args__ = (
+        Index("idx_savings_goals_user_status", "user_id", "status"),
+        Index("idx_savings_goals_user_deadline", "user_id", "deadline"),
+        CheckConstraint("target_amount > 0", name="ck_savings_goal_target_positive"),
+        CheckConstraint("current_amount >= 0", name="ck_savings_goal_current_non_negative"),
+    )
+
+    @property
+    def progress_percentage(self) -> float:
+        if self.target_amount <= 0:
+            return 0.0
+        pct = float(self.current_amount / self.target_amount * 100)
+        return min(pct, 100.0)
+
+    @property
+    def remaining_amount(self) -> Decimal:
+        remaining = self.target_amount - self.current_amount
+        return max(remaining, Decimal("0"))
+
+    @property
+    def is_overdue(self) -> bool:
+        if not self.deadline:
+            return False
+        from datetime import date
+        return self.deadline < date.today() and self.status == GoalStatus.ACTIVE
+
+    def is_completed(self) -> bool:
+        return self.current_amount >= self.target_amount
+
+    def check_milestones(self) -> list:
+        achieved = []
+        existing = {m.percentage: m for m in self.milestones.all()}
+        for pct in [25, 50, 75, 100]:
+            if self.progress_percentage >= pct:
+                if pct not in existing:
+                    milestone = SavingsMilestone(goal_id=self.id, percentage=pct, achieved_at=datetime.utcnow())
+                    db.session.add(milestone)
+                    achieved.append(pct)
+                elif not existing[pct].achieved_at:
+                    existing[pct].achieved_at = datetime.utcnow()
+                    achieved.append(pct)
+        return achieved
+
+    def to_dict(self) -> dict:
+        return {
+            "id": self.id,
+            "user_id": self.user_id,
+            "name": self.name,
+            "target_amount": float(self.target_amount),
+            "current_amount": float(self.current_amount),
+            "remaining_amount": float(self.remaining_amount),
+            "progress_percentage": round(self.progress_percentage, 2),
+            "currency": self.currency,
+            "deadline": self.deadline.isoformat() if self.deadline else None,
+            "status": self.status.value,
+            "description": self.description,
+            "is_overdue": self.is_overdue,
+            "created_at": self.created_at.isoformat() if self.created_at else None,
+            "updated_at": self.updated_at.isoformat() if self.updated_at else None,
+        }
+
+
+class SavingsContribution(db.Model):
+    __tablename__ = "savings_contributions"
+
+    id = db.Column(db.Integer, primary_key=True)
+    goal_id = db.Column(db.Integer, db.ForeignKey("savings_goals.id"), nullable=False)
+    amount = db.Column(db.Numeric(12, 2), nullable=False)
+    currency = db.Column(db.String(10), default="INR", nullable=False)
+    note = db.Column(db.String(500), nullable=True)
+    created_at = db.Column(db.DateTime, default=datetime.utcnow, nullable=False)
+
+    goal = db.relationship("SavingsGoal", back_populates="contributions")
+
+    __table_args__ = (
+        Index("idx_contributions_goal_created", "goal_id", "created_at"),
+        CheckConstraint("amount > 0", name="ck_contribution_positive"),
+    )
+
+    def to_dict(self) -> dict:
+        return {
+            "id": self.id,
+            "goal_id": self.goal_id,
+            "amount": float(self.amount),
+            "currency": self.currency,
+            "note": self.note,
+            "created_at": self.created_at.isoformat() if self.created_at else None,
+        }
+
+
+class SavingsMilestone(db.Model):
+    __tablename__ = "savings_milestones"
+
+    id = db.Column(db.Integer, primary_key=True)
+    goal_id = db.Column(db.Integer, db.ForeignKey("savings_goals.id"), nullable=False)
+    percentage = db.Column(db.Integer, nullable=False)
+    achieved_at = db.Column(db.DateTime, nullable=True)
+
+    goal = db.relationship("SavingsGoal", back_populates="milestones")
+
+    __table_args__ = (
+        Index("idx_milestones_goal_pct", "goal_id", "percentage"),
+    )
+
+    def to_dict(self) -> dict:
+        return {
+            "id": self.id,
+            "goal_id": self.goal_id,
+            "percentage": self.percentage,
+            "achieved_at": self.achieved_at.isoformat() if self.achieved_at else None,
+        }
diff --git a/packages/backend/app/routes/__init__.py b/packages/backend/app/routes/__init__.py
index f13b0f897..932ee4008 100644
--- a/packages/backend/app/routes/__init__.py
+++ b/packages/backend/app/routes/__init__.py
@@ -18,3 +18,5 @@ def register_routes(app: Flask):
     app.register_blueprint(categories_bp, url_prefix="/categories")
     app.register_blueprint(docs_bp, url_prefix="/docs")
     app.register_blueprint(dashboard_bp, url_prefix="/dashboard")
+
+from .savings import bp as savings_bp
diff --git a/packages/backend/app/routes/savings.py b/packages/backend/app/routes/savings.py
new file mode 100644
index 000000000..d7c866c8a
--- /dev/null
+++ b/packages/backend/app/routes/savings.py
@@ -0,0 +1,177 @@
+"""Savings goals API routes"""
+from datetime import date
+from decimal import Decimal, InvalidOperation
+from flask import Blueprint, jsonify, request
+from flask_jwt_extended import jwt_required, get_jwt_identity
+from ..extensions import db
+from ..models import SavingsGoal, SavingsContribution, SavingsMilestone, GoalStatus, User
+
+bp = Blueprint("savings", __name__)
+
+
+@bp.get("/goals")
+@jwt_required()
+def list_goals():
+    uid = int(get_jwt_identity())
+    status = request.args.get("status")
+    q = db.session.query(SavingsGoal).filter_by(user_id=uid)
+    if status:
+        try:
+            q = q.filter_by(status=GoalStatus(status))
+        except ValueError:
+            pass
+    goals = q.order_by(SavingsGoal.created_at.desc()).all()
+    return jsonify([g.to_dict() for g in goals])
+
+
+@bp.get("/goals/<int:goal_id>")
+@jwt_required()
+def get_goal(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="goal not found"), 404
+    result = goal.to_dict()
+    result["milestones"] = [m.to_dict() for m in goal.milestones.all()]
+    return jsonify(result)
+
+
+@bp.post("/goals")
+@jwt_required()
+def create_goal():
+    uid = int(get_jwt_identity())
+    user = db.session.get(User, uid)
+    data = request.get_json() or {}
+    name = (data.get("name") or "").strip()
+    if not name:
+        return jsonify(error="name is required"), 400
+    try:
+        target_amount = Decimal(str(data.get("target_amount", 0)))
+        if target_amount <= 0:
+            return jsonify(error="target_amount must be positive"), 400
+    except (InvalidOperation, ValueError, TypeError):
+        return jsonify(error="invalid target_amount"), 400
+    deadline = None
+    if data.get("deadline"):
+        try:
+            deadline = date.fromisoformat(data["deadline"])
+        except ValueError:
+            return jsonify(error="invalid deadline format"), 400
+    goal = SavingsGoal(
+        user_id=uid, name=name, target_amount=target_amount,
+        currency=data.get("currency") or (user.preferred_currency if user else "INR"),
+        deadline=deadline, description=(data.get("description") or "").strip()[:500],
+    )
+    db.session.add(goal)
+    db.session.commit()
+    return jsonify(goal.to_dict()), 201
+
+
+@bp.patch("/goals/<int:goal_id>")
+@jwt_required()
+def update_goal(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="goal not found"), 404
+    data = request.get_json() or {}
+    if "name" in data:
+        goal.name = (data["name"] or "").strip()[:200]
+    if "target_amount" in data:
+        try:
+            goal.target_amount = Decimal(str(data["target_amount"]))
+        except (InvalidOperation, ValueError):
+            return jsonify(error="invalid target_amount"), 400
+    if "deadline" in data:
+        goal.deadline = date.fromisoformat(data["deadline"]) if data["deadline"] else None
+    if "description" in data:
+        goal.description = (data["description"] or "")[:500]
+    if "status" in data:
+        goal.status = GoalStatus(data["status"])
+    db.session.commit()
+    return jsonify(goal.to_dict())
+
+
+@bp.delete("/goals/<int:goal_id>")
+@jwt_required()
+def delete_goal(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="goal not found"), 404
+    db.session.delete(goal)
+    db.session.commit()
+    return jsonify(message="goal deleted"), 200
+
+
+@bp.post("/goals/<int:goal_id>/contributions")
+@jwt_required()
+def add_contribution(goal_id: int):
+    uid = int(get_jwt_identity())
+    # Use row lock to prevent concurrent issues
+    goal = db.session.query(SavingsGoal).filter_by(id=goal_id).with_for_update().first()
+    if not goal or goal.user_id != uid:
+        return jsonify(error="goal not found"), 404
+    if goal.status != GoalStatus.ACTIVE:
+        return jsonify(error="cannot contribute to inactive goal"), 400
+    data = request.get_json() or {}
+    try:
+        amount = Decimal(str(data.get("amount", 0)))
+        if amount <= 0:
+            return jsonify(error="amount must be positive"), 400
+    except (InvalidOperation, ValueError, TypeError):
+        return jsonify(error="invalid amount"), 400
+    new_amount = min(goal.current_amount + amount, goal.target_amount)
+    actual_contribution = new_amount - goal.current_amount
+    goal.current_amount = new_amount
+    if goal.is_completed():
+        goal.status = GoalStatus.COMPLETED
+    contribution = SavingsContribution(
+        goal_id=goal_id, amount=actual_contribution, currency=goal.currency,
+        note=(data.get("note") or "").strip()[:500],
+    )
+    db.session.add(contribution)
+    achieved = goal.check_milestones()
+    db.session.commit()
+    result = goal.to_dict()
+    result["contribution"] = contribution.to_dict()
+    result["achieved_milestones"] = achieved
+    return jsonify(result), 201
+
+
+@bp.get("/goals/<int:goal_id>/contributions")
+@jwt_required()
+def list_contributions(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="goal not found"), 404
+    page = max(1, int(request.args.get("page", "1")))
+    page_size = min(100, max(1, int(request.args.get("page_size", "50"))))
+    contributions = db.session.query(SavingsContribution).filter_by(goal_id=goal_id).order_by(
+        SavingsContribution.created_at.desc()).offset((page-1)*page_size).limit(page_size).all()
+    return jsonify({"contributions": [c.to_dict() for c in contributions], "total": goal.contributions.count(), "page": page, "page_size": page_size})
+
+
+@bp.get("/goals/<int:goal_id>/milestones")
+@jwt_required()
+def list_milestones(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="goal not found"), 404
+    return jsonify([m.to_dict() for m in goal.milestones.order_by(SavingsMilestone.percentage).all()])
+
+
+@bp.post("/goals/<int:goal_id>/cancel")
+@jwt_required()
+def cancel_goal(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="goal not found"), 404
+    if goal.status != GoalStatus.ACTIVE:
+        return jsonify(error="goal is not active"), 400
+    goal.status = GoalStatus.CANCELLED
+    db.session.commit()
+    return jsonify(goal.to_dict())
diff --git a/packages/backend/tests/test_savings.py b/packages/backend/tests/test_savings.py
new file mode 100644
index 000000000..068744cb9
--- /dev/null
+++ b/packages/backend/tests/test_savings.py
@@ -0,0 +1,83 @@
+"""Savings goals unit tests"""
+import pytest
+from datetime import date, datetime, timedelta
+from decimal import Decimal
+
+
+class TestSavingsGoalModel:
+    def test_create_goal(self, app, test_user, db):
+        from packages.backend.app.models import SavingsGoal, GoalStatus
+        with app.app_context():
+            goal = SavingsGoal(user_id=test_user["id"], name="Vacation Fund", target_amount=Decimal("10000.00"))
+            db.session.add(goal)
+            db.session.commit()
+            assert goal.id is not None
+            assert goal.progress_percentage == 0.0
+
+    def test_progress_percentage(self, app, test_user, db):
+        from packages.backend.app.models import SavingsGoal
+        with app.app_context():
+            goal = SavingsGoal(user_id=test_user["id"], name="Test", target_amount=Decimal("10000.00"), current_amount=Decimal("2500.00"))
+            db.session.add(goal)
+            db.session.commit()
+            assert goal.progress_percentage == 25.0
+
+    def test_is_completed(self, app, test_user, db):
+        from packages.backend.app.models import SavingsGoal
+        with app.app_context():
+            goal = SavingsGoal(user_id=test_user["id"], name="Done", target_amount=Decimal("10000.00"), current_amount=Decimal("10000.00"))
+            db.session.add(goal)
+            db.session.commit()
+            assert goal.is_completed() is True
+
+
+class TestSavingsContribution:
+    def test_create_contribution(self, app, test_user, db):
+        from packages.backend.app.models import SavingsGoal, SavingsContribution
+        with app.app_context():
+            goal = SavingsGoal(user_id=test_user["id"], name="Test", target_amount=Decimal("10000.00"))
+            db.session.add(goal)
+            db.session.commit()
+            contrib = SavingsContribution(goal_id=goal.id, amount=Decimal("1000.00"), note="First")
+            db.session.add(contrib)
+            db.session.commit()
+            assert contrib.id is not None
+
+
+@pytest.fixture
+def app():
+    from packages.backend.app import create_app
+    app = create_app(TestSettings())
+    app.config["TESTING"] = True
+    return app
+
+
+@pytest.fixture
+def test_user(app):
+    from packages.backend.app.extensions import db
+    from packages.backend.app.models import User
+    with app.app_context():
+        user = User(email="test@example.com", password_hash="hash", preferred_currency="INR")
+        db.session.add(user)
+        db.session.commit()
+        yield {"id": user.id}
+
+
+@pytest.fixture
+def db(app):
+    from packages.backend.app.extensions import db as _db
+    return _db
+
+
+class TestSettings:
+    database_url = "sqlite:///:memory:"
+    jwt_secret = "test"
+    jwt_access_minutes = 30
+    jwt_refresh_hours = 24
+    openai_api_key = ""
+    gemini_api_key = ""
+    gemini_model = "gemini-1.5-flash"
+    twilio_account_sid = ""
+    twilio_auth_token = ""
+    twilio_whatsapp_from = ""
+    email_from = "test@example.com"