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Immediate Income Option
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Save tax up to 46,800/-15
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What are Saving Schemes?
As discussed, saving schemes are government-backed products tailored to assist individuals in accumulating wealth safely by contributing small amounts periodically over a long time. They work on the principle of recurring contributions, monthly or quarterly, towards a fixed tenure, at the end of which the investor gets a lump sum that includes both the principal and the accrued interest.
Such schemes generally offer returns that range anywhere between 6.5% and 8.5%, though the rate might differ based on certain factors. These factors are the scheme chosen, the duration of investment and in some cases, the investor's age. Popular examples are Public Provident Fund (PPF), Recurring Deposits (RD), National Savings Certificate (NSC), Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY).
Each of these options endows predictable returns, with many also offering tax benefits, i.e., contributions can qualify for deductions under Old Tax Regime as per Section 80C upto overall ceiling limit of ₹1.5 lakh per financial year, interest on these savings schemes is taxable, however in some schemes like PPF, it may be exempt subject to certain prescribed conditions as per the Income Tax Act, 19611. Due to their low-risk nature and assured returns, savings schemes are a preferred choice for conservative investors.
They are particularly suitable for individuals who want to create funds for essential milestones such as a child’s education, marriage, retirement or for maintaining a financial cushion during emergencies. Zeroing in on the correct saving scheme assists in balancing out security with steady wealth creation.
Best Saving Schemes in India
Saving Schemes |
Interest Rate offered |
Tax Saving Fixed Deposit |
6.50% - 8%a |
Unit-Linked Investment Plan (ULIP) |
13.80% - 27.50%b |
Equity Linked Savings Scheme (ELSS) |
10% - 12%c |
National Savings Certificate (NSC) |
7.7%d |
Senior Citizen Saving Scheme (SCSS) |
8.2%e |
Recurring Deposit (RD) |
2.50% - 8.50%a |
Post Office Monthly Income Scheme (POMIS) |
7.40% f |
Public Provident Fund (PPF) |
7.10%g |
Employees Provident Fund (EPF) |
8.25% h |
National Pension Scheme (NPS) |
9% - 12%i |
Sukanya Samriddhi Yojana (SSY) |
8.2% j |
Kisan Vikas Patra (KVP) |
7.5% k |
Pradhan Mantri Vaya Vandhana Yojana (PMVVY) |
7.4%l |
Types of Saving Schemes in India
1. Tax Saving1 Fixed Deposits (FD)
Tax-saving Fixed deposits like Post-Office Time Deposits, Fixed Term Deposits (as notifed), etc is a type of fixed deposit that allows you to claim tax deductions under the Section 80C of the Income Tax Act of 19611. You can claim up to ₹1.5 lakh deduction per annum by investing in this scheme. You can choose these deposits if you want to get returns from your investment along with tax benefits.
Check out the Features
These are the features of Tax Saving1 Fixed Deposit schemes –
The first account holder can use the amount of investment in this scheme to claim tax deductions. Under Section 80C of the Income Tax Act, 19611 you can claim up to ₹1.5 lakh deduction every financial year.
This savings scheme has zero risk and offers a fixed rate of interest. Additionally, it offers better interest rates if you are a senior citizen.
The maximum investment amount is ₹1.5 lakh in every fiscal year. On the other hand, the minimum investment amount is ₹100.
It has a five-year lock-in period. During the lock-in period, you cannot leverage some facilities such as premature withdrawal, loans or overdraft facilities
2. Unit Linked Insurance Plan (ULIP)
ULIP is a financial instrument that is a combination of both investment and life insurance. You can get both insurance cover and investment benefits by investing in this scheme. Using an online ULIP Calculator, you can figure out the potential returns depending on your investment amount and chosen fund options.
Check out the Features
Some key features to consider for the best savings scheme are -
Unit Linked Insurance Plan (ULIP) offers life insurance coverage for the policyholder. If the policyholder dies, the nominee will receive the sum assured as per the policy terms.
It allows you to invest your amount in various asset classes such as debt, equity, etc. Throughout the investment period, you have the flexibility to choose your fund preferences.
The risk of ULIP depends on the asset class, and the returns can vary based on market fluctuations.
There is a lock-in period of five years. You have to pay the exit fee if you want to withdraw your investment during this period.
It has various charges such as fund management charges, premium allocation charges, mortality charges, administration charges, etc.
By investing in ULIP, you can get tax benefits under 80C, 80CCC, 80D, and Section 10 (10D) of the Income Tax Act 19611.
3. Equity Linked Savings Scheme (ELSS)
ELSS is a type of investment plan that allows investors to invest in equities and provides tax benefits1. It primarily invests in equity or equity-linked financial components, which allows you to get high returns.
Check out the Features
Here are the features of this savings scheme in India –
Equity Linked Savings Scheme (ELSS) invests the major portion of your investment amount in market-linked instruments such as equity or equity-related components.
As per Section 80C of the Income Tax Act 19611, you can claim up to ₹1.5 lakh tax deduction.
You have the flexibility to choose between a lump sum or a Systematic Investment Plan (SIP) as per your choice and financial condition.
It has a three-year lock-in period, and during this, no premature withdrawal is allowed. Once your investment matures, you can reinvest your funds after maturity.
After maturity, you have to pay the long-term capital gains tax, which is 12.50% of the gain. However, if the income from your investment is less than ₹1.25 lakh, you don’t have to pay this tax.
By investing in an ELSS scheme, you can get tax benefits1. It provides better returns as compared to other savings schemes like PPF, NPS, RD, endowment policy, etc.
4. National Saving Certificate (NSC)
The NSC is one of the well know and a good savings schemes that is backed by the Government. This scheme is a good investment option for low and middle-income investors, and anyone can open it easily by visiting the nearest post office.
Check out the Featuress
Here are its benefits and features -
The National Savings Certificate (NSC) is a low-risk investment option as it is a government-backed investment scheme.
An individual can claim tax deductions of up to ₹1.5 lakh in a financial year as per Section 80C of the Income Tax Act of 19611 by investing in this scheme.
The minimum investment amount is only ₹1,000, or you can invest a multiple of 100, allowing you to start with a minimum amount.
The interest rate changes every quarter and gives your investment compounded returns annually. But it is payable only at the time of maturity.
NSC has a maturity period of five years, and you can use loan collateral to get secured loans.
5. Senior Citizen saving Scheme (SCSS)
SCSS is an ideal investment option in India for senior citizens (Age>=60). It offers a fixed interest rate, and you can invest in this scheme by contacting your nearest bank or post office.
Check out the Features
Below are the features of this savings scheme -
The Senior Citizen Saving Scheme (SCSS) offers a fixed interest rate, which changes every quarter. For Q1 FY 2024-25, the rate is 8.2% per annum.
The minimum investment amount is ₹1000, and the maximum amount is ₹30 lakhs. (multiples of 1000).
This savings scheme has a tenure of five years, and further extension is possible in multiple blocks of three years.
A tax deduction of up to ₹1.5 lakh is allowed under Section 80C of the Income Tax Act 19611 if you invest in this scheme.
You will get interest payouts quarterly on your investment amount. Therefore, you will see the reflection on the first date of April, July, October and January.
This savings scheme has low risk and is beneficial for senior citizens. If your age does not match the eligibility criteria, you cannot open this account.
6. Recurring Deposits (RD)
Recurring Deposits (RD) is another best savings scheme, which is usually offered by post offices and banks. It allows you to earn interest on your investment by investing a fixed amount every month.
Check out the Features
Read the following features and benefits of RD -
Recurring Deposits (RD) allow you to start your monthly deposit with as low as ₹10.
The minimum investment tenure is six months, and the maximum tenure is 10 years.
The interest rate of recurring deposits usually varies between 6% and 9% (depending on the bank).
The interest is credited quarterly to your RD account with your principal amount, and you will get compounded returns.
You cannot make a premature or partial withdrawal in this savings scheme. You have to close your RD account before maturity to get back your amount. However, a penalty amount will be deducted if you close it before maturity.
If you fall under the Senior Citizen category (Age>=60 years), you will get a higher interest on your investment amount.
If your age is 60 or above, you can get tax benefits by investing in a recurring deposit.
By filling out the 15G/15H form, you can request the bank or post office not to deduct TDS from your interest.
7. Post Office Monthly Income Scheme (POMIS)
POMIS is a small savings scheme backed by the Indian Government. It offers risk-free returns to investors, and you receive interest every month in your savings account.
Check out the Features
Here are the benefits to consider for this best savings scheme –
Post Office Monthly Income Scheme (POMIS) is a low-risk investment option that offers a fixed interest rate on your investment. Currently, the interest rate is 7.4% per annum.
The maturity period is 60 months (five years) from the date of your account opening. At this time, you cannot withdraw your funds as your investment is under a lock-in period.
The minimum investment amount is ₹1,000 and the maximum investment amount is ₹3 lakhs (for a minor account), ₹9 lakh (for a single account) and ₹15 lakhs (for a joint account).
Your investment in POMIS is transferable in case you change your residential address to a different city. Therefore, your investment amount and interest will be transferred to a new post office.
8. Public Provident Fund (PPF)
PPF is one of the most popular long-term investment-cum-savings options which helps to secure your future. This saving scheme is an ideal option for investors who want to get high but stable returns.
Check out the Features
Here are its features and importance -
Public Provident Fund (PPF) has an interest rate of 7.1% per annum and offers risk-free guaranteed** returns.
The minimum deposit amount is ₹500, and the maximum deposit amount is ₹1.5 lakh in every fiscal year.
By investing in this savings scheme, you can claim up to ₹1.5 lakh as a tax deduction under the 80C section of the Income Tax Act.
The scheme has a lock-in period of 15 years, during which you cannot withdraw the whole amount. Once the lock-in ends, you can extend it by five years.
A loan facility is available for between three years and six years from the date of opening. Before or after this duration, you cannot avail a loan using your PPF account.
In certain conditions, a partial withdrawal is allowed from the seventh year onwards.
9. Employees Provident Fund (EPF)
EPF is a retirement savings scheme that is available to every salaried employee in India. This best savings scheme was introduced by the Employees Provident Fund (EPFO), which is a part of the Ministry of Labour and Employment.
Check out the Features
Take a look at the list of features stated below –
1. In the Employees Provident Fund (EPF), both the employee and the employer contribute 12% of the basic salary and Dearness Allowance (DA).
2. Currently, the rate of interest is 8.15% per annum, and there are some additional benefits such as insurance, pension, and a lump sum return on retirement.
3. An individual can claim a tax deduction under section 80C of the Income Tax Act 19611 (up to ₹1.5 lakh per annum) by investing in the Employees Provident Fund (EPF).
4. Every month, your EPF is deducted from your salary. Therefore, a one-time payment or manual payments are not required.
10. National Pension Scheme (NPS)
NPS is a pension program scheme launched by the Central Government of India. Any employee from the private, public or unorganised sector can invest in this scheme. However, an employee from the armed forces sector cannot invest in this savings scheme.
Check out the Features
Here are the features of this popular savings scheme in India –
The National Pension Scheme (NPS) is available to all citizens in India. But earlier, it was only available for employees under the Central Government.
This scheme cannot offer guaranteed** returns as it is a market-linked investment scheme. But it offers much higher returns compared to PPF.
Traditionally, this savings scheme offers an annual return between 9% and 12% based on the market situation. You can use a savings calculator to know the actual returns.
A certain portion of your investment amount goes under equity investment (50% - 75% of your invested amount).
You can get tax benefits under Sections 80C and 80CCD under the Income Tax Act of 19611 by investing in this.
Every investor gets a Permanent Retirement Account Number (PRAN) from NPS. It ensures seamless portability across jobs and locations.
NPS is one of the lowest-cost pension schemes, which helps to build an adequate retirement corpus as well as offer tax benefits.
11. Sukanya Samriddhi Yojana (SSY)
SSY is a government-related savings scheme created specifically to benefit any girl child under the initiative named "Beti Bachao – Beti Padhao”. Parents of any girl child aged 10 years or younger are eligible to open an account under this scheme.
Check out the Features
Here are the detailed features of the Sukanya Samriddhi Yojana (SSY):
This scheme provides high rates of interest in comparison with other schemes offered by the Government.
SSY is a beneficial scheme to save money for your girl child. A minimum account balance of ₹250 is sufficient for maintaining an SSY account.
This savings scheme guarantees high returns for your child upon maturity.
The account holder of this scheme can claim tax deductions under Section 80C1. Also, the interest earned from this scheme is exempt from taxes.
12. Kisan Vikas Patra (KVP)
KVP is a small savings certificate scheme, which is backed by the Government of India and made available via post offices across the country. Initially launched to encourage farmers to save, hence the name. The scheme is now open to all eligible Indians. It is best matched for those who prefer guaranteed** and risk-free returns over the long term, making it a dependable option for conservative investors.
Check out the Features
Here are the detailed features of the Kisan Vikas Patra (KVP):
Guaranteed** doubling of the invested amount over the notified tenure (currently 115 months).
Minimum investment starts at ₹1,000, with no upper limit on the amount.
Certificates can be purchased individually, jointly, or by a guardian on behalf of a minor.
Premature encashment is permitted post 2.5 years from the investment date.
Returns are fully taxable and do not qualify for deductions as per Section 80C.
13. Pradhan Mantri Vaya Vandhana Yojana (PMVVY)
PMVVY is a pension scheme, introduced by the Indian Government, designed for senior citizens aged 60 years and above. It guarantees fixed pension payouts, i.e., monthly, quarterly, half-yearly or annually, for a period of 10 years, providing financial stability as well as independence post-retirement.
Check out the Features
Here are the detailed features of the Pradhan Mantri Vaya Vandhana Yojana (PMVVY):
Assured return of approximately 7.4% per annum, paid as a regular pension.
The maximum investment permitted is ₹15 lakh per senior citizen.
Fixed policy term of 10 years, with flexible payout options.
Return of the purchase price is provided at maturity.
- The scheme is exempt from GST, but investments do not qualify for tax deductions under Section 80C1.
Importance of Saving Schemes in India
Investing in savings schemes is an essential goal for various reasons.
Achieving Long-Term Goals
Savings schemes leverage the compounding effect, which enables individuals to earn interest on their principal and accumulated interest over a long time period. These matured returns can assist individuals in attaining their financial goals.
As the interest rate is determined at the outset, individuals can plan out their investment amount and duration to match their objectives. The investment period can differ between five and 60 years.
Many money-saving schemes offer the dual benefit of wealth accumulation and life insurance coverage, providing a financial safety net for both you and your loved ones.
...Read More
Planning for Retirement:
Besides meeting future goals, one of the basic reasons to invest in savings schemes is to accumulate a corpus for retirement years. Planning for retirement is very important to maintain a comfortable lifestyle post-employment without compromising on the current living standards.
Retirement and pension plans tend to include life insurance options, which enable you to build a secure financial future while safeguarding your loved ones.
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Financial Safety
Saving schemes come across as one of the safest ways to grow money without exposing it to market risks. Many popular options are PPF, NSC and SCSS. All such options are backed by the Government and offer fixed returns that remain unaffected by stock market volatility.
This makes them particularly suitable for risk-averse investors who want to preserve their capital while still earning steady interest. For retirees or families managing long-term goals, these schemes endow a predictable income that can be relied upon for expenditures such as education, medical needs or daily living. They even serve as a financial buffer in the course of uncertain economic times, offering much-needed mental peace.
Because of their assured returns and low risk, savings schemes are often chosen to build contingency funds or to secure future family needs, making them an essential foundation of safe financial planning.
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Managing Personal Finances
Accumulating funds for the future and minimising unnecessary expenses is crucial for personal financial management. Investing in financial products such as monthly income schemes and other savings schemes in India is necessary to simplify personal financial management. By planning their month-on-month budget depending on income and expenditures, creating a long-term financial plan and selecting a suitable and affordable money saving scheme based on their financial needs, investors can ease their financial management.
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Tax Savings
Many saving schemes come with enticing tax benefits. This makes them even more rewarding. Options such as PPF, NSC, ELSS and life insurance plans qualify for deductions as per Section 80C, reducing your taxable income.
Some schemes even provide tax-free maturity benefits as per Section 10(10D) 1, adding extra value to your savings. These advantages not just encourage disciplined investments but also help balance financial growth with smart tax planning.
By reducing today’s tax burden, tax-saving schemes support both short- and long-term goals with ease.
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Easy Access and Flexibility
Saving schemes are becoming more accessible owing to online services. This permits investors to browse distinct products, compare them and zero in on the most suitable savings scheme. Also, some saving schemes are customisable, considering factors such as investment period, withdrawal features, etc.
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Encouraging Regular Savings
Saving schemes are built to encourage regular saving by requiring fixed monthly or yearly contributions. This structure helps you stay committed to your financial goals and slowly build wealth over time.
For first-time investors or those looking to develop financial discipline, these schemes act as a steady guide. The consistency also works in your favour, i.e., regular contributions accumulate over time and, through compounding, can deliver stronger returns while ensuring financial stability for the future.
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Suitable for All Income Groups
One of the major strengths of saving schemes is that they are accessible to people across income levels. Most schemes come with low entry points. For instance, you can begin an SSY investment with just a meagre amount of ₹250, a PPF with ₹500 or a KVP with ₹1,000.
Tailored to include both urban and rural populations, these schemes make it possible for anyone to begin saving without straining their finances, which ensures financial security is within everyone’s reach.
HDFC Life offers various savings schemes that combine both life insurance and savings-oriented investment options. By investing in these schemes, you can get life insurance, tax-saving benefits, etc.
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HDFC Life Savings Schemes Plans
HDFC Life offers various savings schemes that combine both life insurance and savings-oriented investment options. By investing in these schemes, you can get life insurance, tax-saving benefits 1, etc. A detailed discussion of the types of savings plans is provided below.
Why Choose HDFC Life Click 2 Achieve Savings Plan?
Guaranteed** Returns
HDFC Click 2 Achieve offers guaranteed** returns. You can choose the payout mode based on your preferences. You can choose regular income, money back policy options, or a lump sum payment option with the assurance of guaranteed** returns.
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Flexibility
The savings scheme gives you the flexibility to choose among different options such as premium payment terms, policy terms, benefit structures, death benefits, etc.
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Regular Income
The plan offers you an option to receive a regular income which also increases by 10% every year.
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Survival benefit
Additionally, you can offset your future premium payments against the survival benefit payouts.
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Tax Benefits
By paying your premiums towards this scheme, you can get a tax deduction of up to Rs. 1.5 lakh per annum under Section 80C of the Income Tax Act 19611. Also, you can get tax benefits1 under Section 10(10D) on the final amount you receive after maturity.
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Why Choose HDFC Life Sanchay Plus Savings Plan?
Guaranteed** Benefits
HDFC Life Sanchay Plus plan offers to claim guaranteed** benefits in the form of regular income or a lump sum payment of the maturity amount.
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Long-term income alternative
The savings scheme can be a long-term income alternative where the individual can get a guaranteed** income option for a fixed term of 25 - 30 years.
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Guaranteed income
By investing in this savings scheme, you will receive guaranteed1 income until your age becomes 99 years.
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Assured returns
This scheme is not linked to the market. Therefore, it has a low risk and the guarantee of assured returns. If you are a low-risk investor, you can choose this plan to invest your money.
...Read More
Tax benefits
The amount you are investing in this scheme is eligible for tax deduction under Section 80C of the Income Tax Act. Also, you can get tax benefits under Section 10(10D)1 on the final amount you receive after maturity.
...Read More
Types of Saving Schemes
Even though you have an idea of what the features and benefits of the best savings schemes in India are, read the table below to get a better understanding of their difference. This will help you make an informed decision regarding your investment.
Saving Schemes |
Eligibility |
Investment Tenure |
Investment Amount |
Tax Savings |
Tax Saving Fixed Deposits |
Indian Citizens (NRIs not eligible) |
Fixed: 5 years |
Min: ₹100 per annum Max: ₹1.50 lakh per annum |
Eligible for deduction as per Section 80C |
Unit Linked Insurance Plan (ULIP) |
Indian Citizens & NRIs |
Min: 5 years Max: No limit |
Min: ₹1,500 per annum; No fixed maximum limit (but Section 80C1 deduction capped at ₹1.5 lakh) |
Eligible for Section 80C1; maturity proceeds exempt under Section 10(10D)1, subject to conditions (premium ≤10% of sum assured for policies issued after 2012, else taxable) |
Equity Linked Savings Scheme (ELSS) |
Indian Citizens & NRIs |
Lock-in: 3 years |
Min: ₹500 (per SIP or lump sum); No maximum, but Section 80C1 capped at ₹1.5 lakh |
Investment eligible under Section 80C1; Long Term Capital Gain (LTCG) of above ₹1.25 lakh per year taxable at 12.5% (tax-free up to ₹1.25 lakh) |
National Saving Certificate (NSC) |
Indian Citizens (NRIs not eligible) |
Fixed: 5 years |
Min: ₹1000 Max: No limit |
Investment eligible under Section 80C1; annual accrued interest is also eligible under Section 80C (except final year) |
Senior Citizen Saving Scheme (SCSS) |
Indian Citizens aged 60+ (55–60 for VRS/retired civilians, 50–60 for retired defence employees) |
Fixed: 5 years, extendable by 3 years |
Min: ₹1000 Max: ₹30 lakh |
Eligible for Section 80C1; interest fully taxable, but up to ₹50,000 deductible as per Section 80TTB |
Recurring Deposits (RD) |
Indian Citizens (NRIs have separate NRE/NRO RDs) |
Min: 6 months Max: 10 years |
Min: ₹100 Max: No limit |
No Section 80C1 benefit; only senior citizens get interest deduction under Section 80TTB1 up to ₹50,000 |
Post Office Monthly Income Scheme (POMIS) |
Indian Citizens (NRIs not eligible) |
Fixed: 5 years |
Min: ₹1000 Max: ₹9 lakh (For single account), ₹15 lakh (For joint account) |
No tax benefit; interest is fully taxable |
Public Provident Fund (PPF) |
Indian Citizens (According to the latest PPF rules, NRIs cannot open new PPF accounts. However, if the account was started while the individual was a resident Indian, contributions can continue until maturity. In short, NRIs cannot open fresh accounts but can maintain and invest in their existing ones.) |
Fixed: 15 years, extendable in blocks of 5 years |
Min: ₹500 per annum Max: ₹1.50 lakh per annum |
Exempt-Exempt-Exempt (EEE) benefit (Investment, Interest, and Maturity all exempt as per Section 80C1 & 10(11)) 1 |
Employees Provident Fund (EPF) |
Salaried employees in India |
Till retirement age (minimum 5 years for tax benefits) |
12% of basic salary + DA (mandatory employee contribution) |
EEE benefit (subject to conditions: interest >₹2.5 lakh taxable if no employer contribution, >₹5 lakh if employer contributes) |
National Pension Scheme (NPS) |
Indian Citizens aged between 18 and 70 |
Till retirement |
Min: ₹500 per annum Max: No limit |
Section 80C1 (₹1.5 lakh) + additional 80CCD(1B) 1 benefit up to ₹50,000. At maturity, 60% corpus is tax-free; 40% used for annuity (taxable as per the income slab). |
Now that you know about some of the best saving schemes, it’s important to choose the one that best matches your needs. You don’t always have to invest in high-risk funds; government-backed saving schemes offer security along with stable and regular returns, making them an excellent option for building your retirement corpus.
Difference between Saving Schemes, Investment Plans and Saving Plans
Get to know the about the major points of distinction in saving schemes, investment plans, and savings plans as each serves unique financial goals, offers differing risk levels and endows distinct types of returns and benefits.
Feature |
Saving Schemes |
Investment Plans |
Saving Plans |
Capital Protection |
Yes (Government guaranteed** or fixed return) |
No (subject to market risk) |
Partial (depends on plan structure) |
Returns |
Fixed and predictable (e.g., 6–8% approx.) |
Market-linked, can be high or low |
Moderate; may combine fixed + bonus/market-linked returns |
Risk Level |
Low (safe, non-market linked) |
High to moderate (depends on asset class) |
Low to moderate |
Tax Benefits |
Eligible under Section 80C1 and others (depending on the scheme) |
Available in select plans like ELSS, ULIPs |
Often eligible under Section 80C1 and 10(10D)1 |
Goal Suitability |
Best for capital safety, retirement, and family needs |
Best for long-term wealth creation |
Best for disciplined savings with added insurance/returns |
Liquidity |
Limited (lock-in or tenure restrictions) |
Higher flexibility, but subject to market fluctuations |
Moderate, depends on plan terms and lock-in period |
How to Choose the Best Saving Scheme for Investment?
Choosing the best savings scheme for investment is crucial to reaching an informed decision and meeting your financial goals and objectives. Thus, read the factors stated below that you should follow to choose the best scheme for investment:
Know Your Purpose
The first and foremost step is to understand the purpose behind your investment. A proper understanding of your investment purpose is important to meet your financial goals. Raise the following questions to find out your answer:
a) How much are you willing to invest?
b) When are you expecting to get the returns?
c) Is there a need for tax benefits on the money saved?
Choose the Saving Schemes that Match Your Goals
Begin shortlisting necessary savings schemes once your amount for investment and time frame for receiving the money are decided. Make sure to choose a scheme aligning with your financial objectives. Choose a single scheme to let your invested amount grow over time.
Staying consistent is the best way to reduce risks, particularly in market-linked investments. In some schemes, you invest once and wait until maturity to get your returns, like in NSC or FDs. In others, like PPF or SIPs, you need to put in money regularly to stay on track.
Strive for Maximum Growth
Considering the time and your risk appetite, you can continue investing in either equity or fixed-income schemes. However, if you have adequate time before getting the invested amount, go for equity schemes investment to get higher returns. On the other hand, if you are a risk-averse individual with preferences in financial stability, a fixed-income scheme will be ideal.
If your priority is tax saving, invest in schemes providing tax benefits on the invested amount that include PPF, ELSS, NSC and others. However, some exceptions, such as KVP or POMIS, exist that don't offer tax benefits.
Evaluate Liquidity Needs
Liquidity is the process of how quickly and easily you can get hold of your invested money with zero need to pay penalties. Some saving schemes, such as PPF, NSC and SCSS, have a lock-in attached and have limited withdrawal options, which makes them less flexible for immediate needs.
If you anticipate short-term expenditures or exigencies, it is better to go for more liquid avenues like savings accounts, recurring deposits or liquid mutual funds. Always line up your savings scheme with your financial timeline and cash flow needs for better flexibility.
FAQs on Saving Schemes
Which is the best savings scheme for me?
Deciding the best saving scheme depends on distinct factors like your age, income, financial goals and risk appetite level. Consider factors such as investment tenure, expected returns, tax benefits and liquidity before making a decision. Popular options are Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY) and Senior Citizens Savings Scheme (SCSS).
What is a government saving scheme?
A government savings scheme is offered by the Government to encourage savings. Such schemes provide a secure platform for individuals to grow their money with enticing interest rates. Government savings schemes often come with tax benefits as well, and are considered low-risk investments.
Which post office scheme gives 8% interest?
Currently, the Senior Citizen Savings Scheme (SCSS) offered by the post office provides an interest rate of 8.2%e. This scheme is specifically designed for individuals aged 60 and above. It offers a secure investment option with regular interest payouts.
Which scheme gives more return?
The return on an investment scheme depends on various factors like investment horizon, risk appetite, and market conditions. Some schemes like equity mutual funds have the potential to generate high returns but also carry higher risk.
On the other hand, schemes like the Public Provident Fund (PPF) offer steady returns with lower risk. It is essential to assess your financial goals and risk tolerance before choosing a scheme.
Which scheme has the highest interest?
The interest rate on savings schemes in India varies. Currently, Sukanya Samriddhi Yojana (SSY) offers good interest rates. However, it is designed specifically for a girl child's future.
For other investors, options like the Senior Citizens' Saving Scheme (SCSS) and Public Provident Fund (PPF) often provide attractive interest rates.
How to buy Kisan Vikas Patra?
To purchase a Kisan Vikas Patra (KVP), you can visit your nearest post office or authorised bank. Obtain a KVP application form (Form A) and fill in the required details.
The completed form must be submitted along with the necessary documents, like identity proof and address proof. Then make the payment as specified, and you will receive the KVP certificate.
What is a small saving scheme?
Small Savings Schemes are investment options offered by the Indian Government. These schemes encourage saving habits among people and provide steady returns. They are known for their safety and stability, making them suitable for risk-averse investors.
Popular schemes include the Public Provident Fund (PPF), National Savings Certificates (NSC), and Sukanya Samriddhi Yojana.
What is the government savings scheme for ladies?
The Government of India offers savings schemes for women, such as the Sukanya Samriddhi Yojana (SSY) for the girl child.
Both provide secure, government-backed returns, tax benefits1, and encourage financial independence through disciplined savings, making them ideal for long-term security.
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1. Tax Laws are subject to change from time to time. Customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the prevalent Tax laws
HDFC Life Click 2 Achieve (UIN: 101N186V06) A Non-Linked, Non-Participating, Individual, Savings Life Insurance Plan Life Insurance Coverage is available in this product.
HDFC Life Sanchay Plus (UIN:101N134V26) is a non-participating, non-linked savings insurance plan. Life insurance coverage is available in this product.
** Provided all due premiums have been paid and the policy is in force.
2. As per Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.
15. Save 46,800 on taxes if the insurance premium amount is Rs.1.5 lakh per annum and you are a Regular Individual, Fall under 30% income tax slab having taxable income less than Rs. 50 lakh and Opt for Old tax regime.
HDFC Life Click 2 Achieve (UIN: 101N186V05) A Non-Linked, Non-Participating, Individual, Savings Life Insurance Plan Life Insurance Coverage is available in this product.
HDFC Life Sanchay Plus (101N134V24) is a non-participating, non-linked savings insurance plan. Life Insurance Coverage is available in this product.
a. Interest Rate for varies Bank to Bank.
b. Rate of Interest for stocks/funds may vary depending on the market value
c. Returns vary as per the performance of underlying assets. Depends on Equity Market.
d. https://www.nsiindia.gov.in/(S(dig1wpnemg5uhcadaa44gtrf))/InternalPage.aspx?Id_Pk=182
e. https://www.nsiindia.gov.in/(S(5aa02f55d10whxigo1v0vr55))/InternalPage.aspx?Id_Pk=181
f. https://www.myscheme.gov.in/schemes/pomis
g. https://www.nsiindia.gov.in/(S(xtipmgvtru5mqyadqbe14iyr))/InternalPage.aspx?Id_Pk=178
h. https://www.epfindia.gov.in/site_docs/PDFs/MiscPDFs/InterestRate_OnPFAccumulationsSince1952.pdf
i. https://npscra.nsdl.co.in/download/NEW_WELCOME_KIT396945283.pdf
j. https://cleartax.in/s/sukanya-samriddhi-yojana
k. https://www.nsiindia.gov.in/(S(3y4aiu5553dmcgzdnhmna455))/InternalPage.aspx?Id_Pk=180
l. https://myinvestmentideas.com/pm-vaya-vandana-yojana-pension-plan-features-benefits/
The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.
Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. HDFC Life Insurance Company Limited is only the name of the Insurance Company, The name of the company, name of the contract does not in any way indicate the quality of the contract, its future prospects or ss. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
ARN - ED/09/25/26625
