The more developed a country, the better is its financial sector likely to be. With the economy growing and India slowly becoming a global force, its financial markets are constantly reinventing themselves. This, therefore, is a very good time to take advantage of the boom and invest your money in some wonderful saving schemes.

Here’s a look at some of the best savings schemes available in India and why you should be considering them for your investments.

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Fixed Deposits (FD):

Most banks and non-banking financial companies (NBFCs) offer a wide variety of fixed deposit (FD) schemes that you can invest in… You can choose cumulative fixed deposits, non-cumulative fixed deposits, flexi-fixed deposits, tax-saver fixed deposits and callable fixed deposits among others. FDs are known to be safe and stable and are thus a popular form of investment.

Unit Linked Insurance Plans Unit Linked Insurance Plans (ULIPs) are savings schemes attached with life insurance. Here, a part of the money you invest is locked away in a safe, non-fluctuating insurance fund, while the remaining amount is invested in a mix of equity and debt markets. ULIPs may give you periodic dividends and can be used as a secondary source of income. Usually, the minimum period of investment in a ULIP is five years, but the maximum tenure depends on the age of the investor. The returns earned from a ULIP are taxable.

Employee Provident Fund (EPF)

Employee Provident Fund (EPF) is a saving scheme that is mandatory for the salaried class in India. It is mandatory for organizations with 20 or more employees to have an EPF provision in their pay structure. As a rule, the employee has to pay a minimum of 12% of his/her annual salary. The employer on the other hand matches this contribution to the EPF. The idea of this savings scheme is to build a corpus for the employees’ future.

National Pension Scheme (NPS)

The National Pension Scheme (NPS) is a savings scheme available to every citizen, irrespective of their employment type. The NPS is aimed at building up a retirement corpus for the investors. Here, a deduction of 10% is made from the salary of a person each month. The government matches the amount and puts in into the investor’s NPS account.

Post Office Saving Schemes:

There are some very useful savings schemes offered by the Indian Post Offices. Some of them are:

  1. Public Provident Fund (PPF)

One of the most popular and profitable saving schemes of India, PPF is also a safe option to invest your money in. The government oversees and sets the interest rates offered by the PPF. Currently, you can can earn an interest of around 8%. After a term of 15 years, you can get back a tax-free maturity benefit. It also helps you reduce your income tax liability. Minimum investment: Rs 500

Maximum investment: Rs 1.5 lakh

Interest rate: 8.1%

  1. National Savings Certificate:

The National Savings Certificates (NSC) are issued by the Post Offices in India. They are regulated by the government and therefore are considered to be secured investment tools. You can take these certificates for terms of five or ten years. You stand to earn 8.8% interest on the NSC. Every Indian citizen, including minors, can invest in the Nation Savings Certificate.

Minimum investment: Rs 500

Maximum investment: No cap

Interest rate: 8.8%

  1. Sukanya Samridhi Yojna:

This is a new investment scheme launched in India to aid the futures of young girls in the country. The age of the girl cannot be more than 10 years at the time of opening the account. An interest rate of 8.1% is applicable here. The account will remain functional for 21 years from the date of opening or till the girl gets married (after the age of 18). The maturity benefit is completely tax free.

Minimum investment: Rs 1,000

Maximum investment: Rs 1.5 lakh

Interest rate: 8.1%

  1. Kisan Vikas Patra:

 This is one of the most popular investment schemes of India. The biggest and the most attractive feature of the KVP is that your investment doubles in 100 months, which is roughly about eight years.
Minimum investment: Rs 1,00

Maximum investment: No cap

Interest rate: NA

Additional Read : How is Fixed Deposit better than any other Investment?

The Bottom Line:

There are a number of attractive savings schemes available in India. If you have some money to put away, invest wisely. Before you decide, evaluate every option based on the amount of return you get for a certain amount of risk. Also, consider whether it will help you meet your goals at the right time and also help you save taxes. These factors will help you find the best possible saving scheme for yourself.


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