Top 10 Savings Schemes in India

When you invest with the best savings policy, you can conveniently turn your savings into investments. These schemes allow you to channel your income towards investments by investing regularly, even in small amounts.

As a result of choosing the best savings plan in India, you can also lower your annual tax liability. Bank deposits, post office deposits, and investments such as NSC, KVP, and Sukanya Samriddhi Yojana are all the best savings schemes.

Keep reading to learn about India's top ten saving schemes.

• Senior Citizens Savings Scheme
• National Savings Certificate
• Public Provident Fund
• Recurring Deposit
• Post Office Monthly Income Scheme
• Kisan Vikas Patra
• Sukanya Samriddhi Yojana
• Atal Pension Yojana
• Employee Provident Fund
• Pradhan Mantri Jan Dhan Yojana

Top 10 Saving Schemes in India 2024

1. Senior Citizens Savings Scheme

   Senior Citizens Savings Scheme (SCSS) is designed for Indian seniors over sixty years old. The scheme is also available to people between 55 and 60 who have retired early or opted for VRS. Here are the features of this scheme:
   • The minimum investment limit is ₹1000, and the maximum is ₹15 lakhs.
   • It is a 5-year investment but can be extended by three years if necessary. You can close your account after one year without penalty.
   • Invested funds will earn interest every quarter on the last day of the quarter.
   • You can deduct the amount you invest in SCSS, but you will be taxed on the interest you earn. TDS is applied to interest if the amount received exceeds ₹10,000 annually.

2. Public Provident Fund

   • One of India's most popular savings schemes and one of the first retirement savings schemes for self-employed people is the PPF.
   • Anyone can open a PPF account, regardless of their age. PPF accounts are limited to one per individual investor. NRIs and HUFs cannot open PPF accounts.
   • You may withdraw the total amount after 15 years or a five-year extension period allowed following 15 years.
   • The total amount can be withdrawn after five years for medical expenses or education of the child.
   • Partial withdrawals are possible starting in the 6th year of account ownership (counted as Financial Years).
   • Once a year, you may withdraw up to 50% of your available balance at the beginning of one financial year.
   • The investment of money qualifies for a tax deduction under section 80C. PPF maturity values and partial withdrawals are tax-free.

3. National Savings Certificate

   NSC is a government-backed savings product that offers guaranteed returns and tax savings. A 5-year lock-in period applies to this saving scheme. This scheme is characterized by:
   • NSC investments will continue to earn the same interest rate. Governments review and fix interest rates quarterly. Currently, the NSC interest rate is 7.7%.
   • You can make investments up to ₹1.5 lakhs and claim a tax deduction under Section 80C. The maturity gain is taxable. Tax slabs determine interest rates.
   • Opening a joint account or buying a National Savings Certificate in your name is possible.
   • You can invest as little as ₹100 with an NSC investment, with no maximum limit.

4. Recurring Deposit

   • RD allows you to save a certain amount regularly. For short- and medium-term savings, RDs are the best option.
   • Post offices and banks offer RD accounts to any individual of any age.
   • No partial or premature withdrawals are allowed from recurring deposits. RDs can, however, be broken early for a penalty on interest rates.
   • Interest on recurring deposits is taxed in the year it is accrued. Earning over ₹10,000 in a financial year will make it subject to TDS. RDs from the post office are tax-free.
   • However, interest must be included if your taxable income exceeds the minimum exemption limit. For those under 60, the exemption is ₹2.5 lakhs, and for those over 79, it is three lakhs. A limit of ₹5 lakhs applies to individuals over 80.

5. Post Office Monthly Income Scheme

   POMIS is the best monthly savings scheme in India. Your deposit will earn a higher interest rate under this scheme. If you have a low appetite for risk, it's the best savings scheme in India.
   • Investments in the scheme can range from ₹1500 to ₹4.5 lakhs per individual.
   • If you open a joint account with two or three individuals, you can invest ₹9 lakhs.
   • You cannot deduct or exempt the amount you invest or the interest you earn. Additionally, you can open a joint account with two or three people and invest up to ₹9 lakhs.

6. Pradhan Mantri Dhan Jan Yojana

   The Pradhan Mantri Dhan Jan Yojana is a scheme launched by the government in the year 2014 for those citizens who do not have a bank account. Its main objective is to provide financial services such as pension, insurance, remittance, banking, etc. Account holders are also eligible to get accidental insurance of ₹1 lakh along with ₹30000 as life cover.

7. Kisan Vikas Patra

   As the name suggests, the Kisan Vikas Patra was one of the best saving schemes introduced for farmers. However, it is now open to everyone who is wondering how to save money for the future. Under this scheme, the money invested doubles in 100 months (8 years and 4 months).
   Some important facts about this scheme are:

   • Anyone above 18 years of age can invest in this scheme.
   • There is a guaranteed return.
   • The annual return is 7.5% per annum(2024-2025).
   • The minimum amount of investment is ₹1000, and there is no upper limit.

8. Sukanya Samriddhi Yojana

   This savings scheme is a good savings scheme if you have a girl child. The scheme was introduced by the Indian Ministry of Finance in 2015 to provide girl children with a better future. Under this scheme, the minimum deposit amount is ₹250, which must be invested for a tenure of 21 years.
   • You can open an SSY account for 2 girl children.
   • The current rate of interest under this scheme is 8.2%. (April to June 2024).
   • The maximum amount you can deposit under this scheme is ₹1.5 lakhs.

9. Atal Pension Yojana

   The Atal Pension Yojana is a retirement scheme designed for people belonging to economically backward sections of society and for those who work in the unorganised sector. Under this scheme, the applicant is eligible for a pension after retirement.
   Some of the key features of this scheme include:
   • People from the age group of 18-40 years are eligible to apply under this scheme.
   • One should pay the premium for a minimum of 20 years.
   • Applicants must have a savings bank account or post office savings bank account.

10. 10. Employee Provident Fund

    Employee provident fund is one of the best monthly savings plans introduced by the government. It enables the working class to save for their retirement. Contribution to this scheme is mandatory for all salaried individuals working in an organisation.
    Some notable features of this scheme are:
    • Under this scheme, both the employer and employee contribute 12% of the employee's salary towards the fund.
    • Some benefits of the scheme are pension, insurance, lump sum payment on retirement, etc.

Current Interest Rates of Saving Schemes

What are the Benefits of Investing in Saving Schemes in India

Parking your money in a tax-saving scheme is an excellent way to secure your future while saving taxes. By channelising your savings into a beneficial saving plan, you can be better prepared to face future uncertainties.
Here are some of the benefits of investing in a savings plan.

• Retirement Savings - Investing in money savings schemes enables you to save money for retirement and provides you with a comfortable future.
• Tax-Saving-Many of the investment schemes allow you to claim a tax deduction under the Income Tax Act.
• Money Safety-Investing regularly in these schemes is a sure-shot way of securing your hard-earned money.
• Easy to Use- Investing and maintaining money in these funds is straightforward.
• Long-Term Benefit- Savings scheme helps you to accumulate funds for future benefits.
• Wide Range of Services- There are different types of saving schemes for different requirements, such as retirement benefits, savings, child education, and so on. You can choose the one as per your needs.

Conclusion

You can invest your money in small savings schemes with little or no risk. Savings plans are, however, targeted at specific groups. Information on financial products matching your savings goals is essential to make informed investment decisions.

Start your savings today with any of PNB MetLife’s savings solutions.

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