Best Saving Schemes that Give High Returns


Saving money is fundamental to everyone’s survival. Most people in India set money aside for emergencies. While putting away cash is always a good idea, it’s much better when you get rewarded for doing so.

For saving money and earning a respectable return, savings plans are the best. Using savings plans can help you control your finances. Read this article to learn about the best saving schemes available.

Top 5 Best Saving Schemes that Give High Returns

National Savings Certificate (NSC)

  • Annual Rate of Interest: 6.8%
  • Minimum investment: Rs. 100
  • Withdrawal: After maturity
  • Tax benefits: Up to Rs. 1.5 lakh as per Section 80C limit
  • Expiry/when to claim: 5 Years

You can start saving with the NSC at any post office in India. The program was created by the Indian government to encourage citizens to save. NSCs offer fixed maturity terms of either five or ten years. Also, there is no highest deposit amount.

You have to buy an NSC to participate in this plan. The initial investment should be Rs. 1000. Thereafter, investments can be as low as Rs. 100. After you invest, the interest will depend on the type of certificate purchased. Therefore, NSC is one of the best saving schemes available today.

National Pension Scheme (NPS)

  • Withdrawal: After maturity or after three years
  • Minimum investment: Rs. 1000 per year
  • Tax benefits: Up to Rs. 1.5 lakh as per Section 80CDD limit
  • Expiry/when to claim: 5 Years

The NPS is a savings plan to provide a regular stream of funds in your old age. It is one of the best saving schemes. Hence your salary is automatically deducted and invested in the plan. The primary goal of this plan is to give you peace of mind that you have some funds saved for retirement. Benefits such as health insurance and provident funds are part of the social safety net. You can also receive interest on your deposits.

Senior Citizen Savings Scheme

  • Annual Rate of Interest: 7.6%
  • Minimum investment: Rs. 1000
  • Withdrawal: Annually
  • Tax benefits: Up to Rs. 1.5 lakh as per Section 80C limit
  • Expiry/when to claim: 5 Years

For cautious investors, the SCSS savings plan is a solid choice. Individuals or couples can put up to Rs 15 lakh into the plan through a joint account. Investors must be over the age of 55 to invest in the scheme. Also, they must receive a government pension or take early retirement. A cash deposit or check can get you started. A cheque is acceptable when investing more than Rs 1 lakh

The plan lasts for five years, but you can extend the term of this retirement plan by an additional three years.

A 1.5% early withdrawal fee on the initial deposit will be deducted from the account balance if you close the account between the first and second year. Between the second and third year, a 1% penalty is deducted from the principal if you close the account.

This will go towards a fee for early withdrawal. Individual investors can only have one extension.

Fixed Deposits

  • Annual Rate of Interest: Varies from bank to bank
  • Minimum investment: Rs. 5000
  • Withdrawal: Depends on the bank
  • Tax benefits: Up to Rs. 1.5 lakh as per Section 80C limit
  • Expiry/when to claim: Depends on the period of the FDperiod

When you put money into a fixed deposit, you commit to leaving it there for a certain amount of time. You will not be able to access this amount. This makes FDs one of the best saving schemes.

Most FDs are tied to your checking account. Hence, you’ll have access to the money you’ve invested.

Fixed Deposits vary from one bank to another. But, all have their advantages and potential drawbacks. Before deciding on one, you must know how they function to pick the one best suited to your needs.

Fixed deposits are a great way to earn high interest on your savings. If you want your money to grow without incurring any unnecessary risks, a fixed deposit may be your best solution.

Recurring Deposits

  • Annual Rate of Interest: 2.5% to 8.50%
  • Minimum investment: Rs. 10
  • Withdrawal: After maturity
  • Tax benefits: Up to Rs. 1.5 lakh as per Section 80C limit
  • Expiry/when to claim: 6 months to 10 years (depending on the bank)

A recurring deposit is a regular payment automatically deducted from your account to an RD account. You can put money down for a longer time by using this method.

The primary benefit of recurring deposits is the convenience of investing. A fixed sum of money gets deducted from your account at defined periods. This way, even if you do not have cash, you can still pay for things without worrying about wasting them.

The other perk is that it encourages disciplined saving by removing the need to check the account balance or use the funds for anything else. For example, a Recurring Deposit can be opened at a bank with as little as Rs. 500, while at the post office, you can open it with as little as Rs.10.

While interest rates on such deposits vary by bank, post offices throughout India offer a consistent 8.4% per annum.


Putting money aside for the future is crucial. Short-term savings, even if only a few rupees each week will mount up to significant sums over time. Investing in some of the best saving schemes mentioned above will help you grow your wealth over time. You can also look at the best ELSS funds to understand how you can save on tax.

These are only a few of the options available to you when it comes to planning for the future financially. Do you want to learn more about such investment options? Visit our website and become a master investor!