1. Fixed Deposits (FD)

This serves as one of the safest savings options available that allows you to contribute any amount as per your choice. Moreover, you can get a higher interest rate when compared to the one offered by savings accounts of banks.

• Features of Fixed Deposits Scheme
  • Duration: 7 days to 10 years
  • Rate of Interest:  Between 3.5% p.a. and 6.8% p.a.
  • Minimum Amount Contributable: ₹500
  • Maximum Amount Contributable: No limit
  • Taxability of the Returns: You will have to pay a TDS of 40% on amounts above ₹40,000.

2. Equity-Linked Savings Scheme (ELSS)

This savings scheme is linked with the money market, where you decide between investing in equity funds or debt funds. If you invest in mutual funds, you can get higher returns. Alternatively, debt funds are less volatile and hence safer than equity funds.

• Features of Equity-Linked Savings Scheme
  • Duration: 3 years
  • Rate of Interest: Varies with the type of fund
  • Minimum Amount Contributable: ₹100
  • Maximum Amount Contributable: No limit
  • Taxability of the Returns: You will have to pay a 10% tax on dividends from ELSS and an additional 10% tax on your long-term capital gains.

3. Public Provident Funds (PPF)

This is a government-launched savings scheme that is free of tax. There is a fixed lock-in period of six years beyond which you can partially withdraw money without having to pay additional charges. 

• Features of the Public Provident Funds Scheme
  • Duration: 15 years
  • Rate of Interest: 7.1% p.a.
  • Minimum Amount Contributable: ₹500
  • Maximum Amount Contributable: ₹1.5 Lakhs
  • Taxability of the Returns: You will not have to pay any taxes on the interest incurred on your deposits.

4. Post Office Monthly Income Scheme

This is somewhat similar to a savings account where you can earn a fixed interest on your investment. This can serve as an additional monthly source of income. Moreover, it allows joint account holders to invest up to ₹9 Lakhs in this scheme. 

• Features of Post Office Monthly Income Scheme
  • Duration: 5 years
  • Rate of Interest: 6.6%
  • Minimum Amount Contributable: ₹1,500
  • Maximum Amount Contributable: ₹4.5 Lakhs
  • Taxability of the Returns: You can pay taxes on the interest as per the regular income tax slab rates.

5. National Savings Certificate (NSC)

This, too, is a government-backed scheme, where you can deposit your money at the nearest post office. Furthermore, the government revises the interest rates for this scheme every year keeping in mind the benefit of investors. 

• Features of the National Savings Certificate Scheme
  • Duration: 5 years
  • Rate of Interest: 6.8% p.a.
  • Minimum Amount Contributable: ₹100 per annum
  • Maximum Amount Contributable: No limit
  • Taxability of the Returns: Taxes on interests are payable as per the regular income tax slab rates.

6. Senior Citizens Savings Scheme (SCSS)

This is beneficial for individuals who are looking towards investment to plan a financially stable retirement. So, if your age is between 50 and 60, you can think of investing in this scheme.

• Features of the Senior Citizens Savings Scheme
  • Duration: 5 years
  • Rate of Interest: 7.4% p.a.
  • Minimum Amount Contributable: ₹1,000
  • Maximum Amount Contributable: ₹15 Lakhs
  • Taxability of the Returns: You will have to pay a tax on the interest earned. However, you can earn a deduction of up to ₹50,000.

7. Sukanya Samruddhi Yojana (SSY)

The government launched this scheme with the aim of financially securing the future of the girl child. However, you should note that one can open two accounts at a maximum, one for each of your children. 

• Features of Sukanya Samruddhi Yojana
  • Duration: 15 years
  • Rate of Interest: 7.6% p.a.
  • Minimum Amount Contributable: ₹250
  • Maximum Amount Contributable: ₹1.5 Lakhs
  • Taxability of the Returns: You will not have to pay any tax on the interests earned.

8. Kisan Vikas Patra (KVP)

This is a small-scale savings scheme which offers a fixed rate of interest. There are chances of doubling your investment by the end of the tenure. Additionally, there is no upper limit to investment so you can invest as much money as you want.

• Features of Kisan Vikas Patra Scheme
  • Duration: 10 years and 4 months
  • Rate of Interest: 6.9% p.a.
  • Minimum Amount Contributable: ₹1,000
  • Maximum Amount Contributable: No limit
  • Taxability of the Returns: You will have to pay tax on the interests earned.

9. Atal Pension Yojana (APY)

This scheme is beneficial for people belonging to weaker sections of society. Individuals with ages ranging between 18 and 40 can contribute to this scheme. You can easily decide the monthly premium based on your age and the amount of money you are keeping aside.  

• Features of Atal Pension Yojana
  • Duration: 20 years
  • Rate of Interest: N/A
  • Minimum Amount Contributable: ₹1,000
  • Maximum Amount Contributable: ₹5,000
  • Taxability of the Returns: Returns are not taxable.

10. Employees Provident Fund (EPF)

According to the EPFO guidelines, an employee and their employer will have to mandatorily contribute to the provident fund of an employee. This is beneficial as employees can easily transfer this account from one employer to another. Furthermore, it serves as a robust retirement plan for working people. 

• Features of the Employees Provident Fund Scheme
  • Duration: 5 years
  • Rate of Interest: 8.5% p.a.
  • Amount Contributable: 12% of the basic salary
  • Taxability of the Returns: You will not have to pay any tax after the completion of the lock-in period.

11. National Pension System (NPS)

This scheme, too, was introduced with the aim of financially securing the post-retirement life of both central and state government employees. Any person between the age of 18 and 60 are eligible for this scheme. Accordingly, both the employer and employee will have to contribute equally to it.

• Features of the National Pension System Scheme
  • Duration: Until the age of 60 years
  • Rate of Interest: Between 5% p.a. and 8% p.a.
  • Minimum Amount Contributable: ₹1,000
  • Maximum Amount Contributable: No limit
  • Taxability of the Returns: 60% of the deposit money is tax-free. However, you will have to pay interest on the remaining 40%.

12. Pradhan Mantri Jan Dhan Yojana

This is a tailor-made scheme, introduced by the government, for individuals below the poverty line. It is beneficial for them as there is no minimum amount that they will have to contribute to this scheme. Also, they can earn interest on their deposits, which is advantageous for them. For added benefits, the government has introduced a mobile banking facility to make it more user-friendly.

• Features of Pradhan Mantri Jan Dhan Yojana Scheme
  • Duration: N/A
  • Rate of Interest: 4%
  • Minimum Amount Contributable: No limit
  • Maximum Amount Contributable: No limit
  • Taxability of the Returns: You will not have to pay any tax on the interests.

13. Voluntary Provident Fund (VPF)

A salaried employee can contribute in this scheme up to 100% of their basic salary. However, you should note that your employer will not make any contributions to this scheme, unlike the PPF scheme. 

• Features of the Voluntary Provident Fund Scheme
  • Duration: 5 years
  • Rate of Interest: 8.5% p.a.
  • Amount Contributable: Between 12% EPF contribution and 100% of the basic salary
  • Taxability of the Returns: You will not have to pay any tax on the returns.

14. Deposit Scheme for Retiring Government Employees

Only retiring government employees are eligible for deposit money in this scheme. However, they will have to open an account for it in a bank or post office within three months of their retirement. Additionally, they can receive the interest on a half-yearly basis, which can add to the profit. 

• Features of Deposit Scheme for Retiring Government Employees
  • Duration: N/A
  • Rate of Interest: 9% p.a.
  • Minimum Amount Contributable: ₹1,000
  • Maximum Amount Contributable: Any amount below total retirement benefits
  • Taxability of the Returns: You will not have to pay any tax on the interests.

Knowing the best saving schemes in India is essential to limit your options. This will ultimately reduce confusion and aid you in making the best decision to maximise your profits. Additionally, you can easily plan your retirement, such that you do not have to stay financially dependent.