Top 10 Savings Schemes in India: Secure Your Financial Future


A film poet once wrote a wonderful song: “Money is the source of everything – understanding the value of this money is human dharma.” This sentiment resonates deeply in real life.

Saving money enables you to live comfortably and avoid financial difficulties in the future. It also helps you achieve your financial goals more easily. In light of this, let’s explore India’s top 10 savings schemes on this World Savings Day (October 30).

Fixed Deposits: Fixed deposits are a reliable choice for those looking to earn good returns without the risk of losing their capital. Under Section 80C of the Income Tax Act, you can receive a tax deduction of up to ₹1.5 lakh on fixed deposits.

ULIP (Unit Linked Insurance Plans): ULIPs combine insurance and investment. A portion of your investment goes toward life insurance, while the remaining amount is invested in equity or debt mutual funds. These funds offer good long-term returns along with insurance coverage.

Equity Linked Savings Scheme (ELSS): This equity-linked savings scheme functions like a mutual fund, with a lock-in period of just 3 years. Approximately 80% of your investment is allocated to equities, which can lead to high returns and provide tax benefits.

National Pension Scheme (NPS): The National Pension Scheme is an excellent option for those who wish to receive a monthly pension after retirement.

Senior Citizen Savings Scheme (SCSS): SCSS accounts are available at banks and post offices for individuals over 60. These accounts provide guaranteed income through interest payments.

Government Savings Schemes in India

Sukanya Samriddhi Yojana: This government scheme is designed specifically for girl children under 10 years old. Parents or guardians can open two separate accounts for a maximum of two girls. Funds can be withdrawn after 21 years of account opening or when the girl reaches 18 for marriage expenses.

Pradhan Mantri Vaya Vandana Yojana (PMVVY): Introduced by the Life Insurance Corporation of India (LIC), this scheme provides pensions to seniors over 60.

The pension amount is calculated at an interest rate of 8% per annum, and payment options are monthly, quarterly, half-yearly, or annual.

Public Provident Fund (PPF): PPF is one of India’s most popular savings schemes, offering an annual interest rate of 7.1%. It also provides tax exemptions under Section 80C, covering the principal and interest earned.

National Savings Certificate (NSC): The NSC suits those seeking good returns without risk. You can invest in this scheme at any post office across the country, and it also offers tax exemptions on the income generated.

Post Office Savings Schemes: Unlike bank fixed deposits, which generally have strict withdrawal terms, post office schemes allow for partial or complete withdrawals with short notice.

Here are some of the best post office savings options currently available:

  • Post Office Savings Account (SB)
  • Public Provident Fund Account (PPF)
  • Senior Citizens Savings Scheme Account (SCSS)
  • Sukanya Samriddhi Account (SSA)
  • Kisan Vikas Patra (KVP)
  • Mahila Samman Savings Certificate
  • PM Cares for Children Scheme, 2021

Understanding these savings options can contribute to a more secure financial future.

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