Everyone wants to save money for their future—be it for retirement, emergencies, or their child’s education.
But with so many investment options available, it’s easy to get confused about where to put your money.
Some prefer traditional savings plans, while others look for market-linked options.
To make things easier, here are five reliable and government-backed investment schemes that can help you secure your financial future.
Employee Provident Fund (EPF): Retirement Savings Made Easy
The Employee Provident Fund (EPF) is one of the most popular savings schemes for salaried employees. Both you and your employer contribute 12% of your basic salary every month.
Out of this, 3.67% goes into your EPF savings and 8.33% into the Employee Pension Scheme (EPS) for your post-retirement pension.
It’s a great long-term option as it builds a retirement corpus while ensuring a steady pension after you stop working.
Public Provident Fund (PPF): Safe and Tax-Free Returns
The Public Provident Fund (PPF) is perfect for those looking for a safe and long-term investment.
It comes with a 15-year lock-in period, and you can even extend it for another five years.
You can invest as little as Rs 500 or as much as Rs 1.5 lakh annually.
The interest rate, decided by the government, is tax-free and revised every year—making it one of the most trusted small savings schemes in India.
National Pension System (NPS): Build Your Retirement Fund
If you’re planning for retirement, the National Pension System (NPS) is a smart choice.
Managed by the Pension Fund Regulatory and Development Authority (PFRDA), it allows you to invest regularly and build a retirement corpus.
There are two types of accounts—Tier-I (retirement-focused with tax benefits) and Tier-II (flexible savings).
Contributions can start from as low as Rs 500.
NPS investments also offer additional tax deductions under Section 80CCD.
National Savings Certificate (NSC): Steady Returns with Tax Benefits
The National Savings Certificate (NSC) is a low-risk, fixed-income scheme with a five-year lock-in period.
It provides a fixed interest rate, compounded annually, and your reinvested interest also qualifies for tax deductions under Section 80C.
It’s a good option for conservative investors who prefer guaranteed returns.
Sukanya Samriddhi Yojana (SSY): Secure Your Daughter’s Future
The Sukanya Samriddhi Yojana (SSY) is a special scheme for parents of a girl child.
It offers one of the highest interest rates among small savings schemes—currently 8.2% (as of July 2024).
It’s a safe, government-backed plan that provides full tax benefits under Section 80C and helps parents build a strong financial foundation for their daughter’s education and future.
Final Thoughts
If you’re planning your investments, these five government-backed schemes are reliable, safe, and suitable for different financial goals.
You can even consult a financial advisor to decide which one best fits your needs.
Start early, invest regularly, and secure a financially stable future.
