Savings plans in India are investment choices that can help you safely grow your money and achieve your financial objectives. The most excellent savings plans will allow you to engage for a long time and swiftly convert your resources into investments. These programs enable you to invest a regular portion of your money, even in small sums.
The best savings plan in India will also help reduce your tax obligations. Savings programs include post office savings plans, bank deposits, and investments like the KVP, NSC, and Sukanya Samriddhi Yojana. In addition, you can put money into debt- or equity-related schemes, fixed deposits, conventional insurance plans, online investment and savings plans, etc.
Okbima has assessed the best savings options in India.
To assist you in achieving your financial objectives over a specific period, the Indian government (or institutions) has introduced savings programs. The goals of various savings plans also vary, as do their investment periods, interest rates, and tax advantages. You must evaluate your financial affordability and risk appetite to select the best savings plan in India 2023.
As the Indian government supports most of India's top saving and investing plans, the returns from these plans are guaranteed. It offers you good returns on a low-risk investment strategy. The government occasionally revisions to the interest rates for savings and investment plans. The government updates the rates between three and six months.
According to your financial circumstances and the objective length, multiple options are available when you invest in the best savings plans in India 2023.
|
Saving Schemes |
Interest Rate offered |
|
Public Provident Fund (PPF) |
7.10% |
|
Atal Pension Yojana |
NA |
|
Sukanya Samridhi Yojana (SSY) |
7.60% |
|
National Pension Scheme (NPS) |
5-12% (Depends on the investment performance ) |
|
Employees Provident fund (EPF) |
8.50% |
|
Pradhan Mantri Jan Dhan Yojana |
2% above base rate not exceeding 12% |
|
Senior Citizen Saving Scheme (SCSS) |
7.40% |
|
National Saving Certificate (NSC) |
6.80% |
|
Recurring Deposits (RD) |
6 -7% |
|
Voluntary Provident Fund (VPF) |
8.50% |
|
Kisan Vikas Patra (KVP) |
6.90% |
|
Post Office Monthly Income Scheme (POMIS) |
6.60% |
Here are some essential characteristics of savings plans in India.
Assurance for Life
The word "life cover" refers to a financial instrument that provides coverage for the survivor in the case of a passing or disability. That is the most crucial component that any saver should search for in a financial plan.
The Benefit of Maturity
Nowadays, almost all savings plans in India have maturity advantages, which allow you to attain your financial objectives more quickly by giving you bonuses when the plan reaches maturity.
Modular Premium Payment
Your payment options are entirely flexible with a savings plan. Hence, depending on your convenience, you can pay quarterly, monthly, semi-annually, or annually.
Recurring Income
A savings plan carries the least amount of risk; therefore, investing in one can give you safe returns over time.
Here is a handy comparative table depicting the characteristics of savings plans in India
|
Saving Plans |
Eligibility |
Investment Term |
Investment Sum |
Tax Rebate |
|
Senior Citizen Saving Scheme (SCSS) |
Indian Residents 60 years or above, 55+ if on VRS, 50+ for Defence Personnel |
Min & Max: 5 years + 3 year extension |
Min: Rs 100 Max: No Limit |
Only investment is exempt |
|
National Pension Scheme (NPS) |
Indian Citizens between 18 – 70 years |
Min & Max: 60 – entry age, can continue till 70 years of age |
Min: Rs 500 p.a. Max: No Limit |
Investment exempt, maturity value exempt up to 60% of fund value |
|
Voluntary Provident Fund (VPF) |
Salaried Employees in India |
Min & Max: Age at retirement – entry age |
Min: Voluntary Max: 100% of salary |
Investment, accrued interest & maturity all are exempt for notified VPF scheme |
|
Post Office Monthly Income Scheme (POMIS) |
Resident Indians only |
Min & Max: 5 years |
Min: Rs 1000 Max: Rs 4.5 lakhs (individual a/c) Rs 9 lakhs (joint account) |
No exemption |
|
Public Provident Fund (PPF) |
Resident Indians Only |
Min & Max: 15 years + 5 years ext. (no limit) |
Min: Rs 500 p.a. Max: Rs 1.5 lakhs p.a. |
Investment, accrued interest & maturity all are exempt |
|
Kisan Vikas Patra (KVP) |
18 years+ Indian Residents |
Min & Max: 124 months |
Min: Rs 1000 Max: No Limit |
Only investment is exempt |
|
Employees Provident fund (EPF) |
Salaried Employees in India |
Min & Max: Age at retirement – entry age |
Min: 12% of Salary Max: 100% of salary |
Investment, accrued interest & maturity all are exempt |
|
National Saving Certificate (NSC) |
Indian Citizen & Resident |
Min & Max: 5 Years |
Min: Rs 100 Max: No Limit |
Only investment is exempt |
|
Sukanya Sammriddhi Yojana (SSY) |
Parents/ Guardians of a girl child below 10 years of age |
Min & Max: Until the girl child attains majority, up to 21 years |
Min: Rs 500 p.a. Max: Rs 1.5 lakh p.a. |
Investment, accrued interest & maturity all are exempt |
|
Pradhan Mantri Jan Dhan Yojana |
Indian Residents without another Bank Account |
Min & Max: No limit |
Min: Zero balance Max: up to Rs 1 lakh |
No tax benefits, but no TDS as well |
|
Recurring Deposits (RD) |
Any Indian Resident or NRI |
Min & Max: 12 months to 120 months |
Min: Rs 500 Max: No limit |
No exemption |
|
Atal Pension Yojana |
Indian Citizens between 18 to 40 years of age |
Min & Max: 60 – entry age |
Min: Rs 42 p.m. Max: Rs 1318 p.m. |
Investment, accrued interest & maturity all are exempt |
As can be seen, India's finest savings and investment plans involve using financial tools to invest in assets that will provide stable and assured returns to help you reach your financial objectives. Best savings plans in India, on the other hand, are a type of insurance plan that offers insurance coverage while also assisting you in achieving your short- and long-term objectives.
To select the greatest online savings and investing programme in India, simply follow the three simple steps listed below
Knowing what you want to achieve
To proceed, you must first comprehend and identify the goal of your investment.
How much are you putting in?
Do you want the refunds when they are ready?
If you save money, do you require tax benefits?
As per your goal, narrow down your range of savings options
As you narrow down your savings options, remember that you can narrow down the savings options according to the sum invested and the length of time left before you require the funds for a goal. The idea should be to contribute once and keep up the same saving routine until you need the money back.
Seek maximum growth
You can invest in equities or fixed-income securities (debt plans) depending on the amount of time you get and your risk tolerance. If your goal includes tax reduction, you can only select from the plans that provide a tax incentive on the amount invested. A few examples include KVP and POMIS but not NSC, PPF, or ELSS.
Saving money from an early age is crucial if one wants to achieve their financial goals in life. A person should ideally save 20% of their salary for a stable financial future after retirement. The following advice will help you build an entirely foolproof savings strategy.
Establish a budget
Establish financial objectives.
Calculate how much you can each month put towards your savings objectives.
Create multiple retirement or savings accounts.
Observe your earnings and expenses.
Increase your savings over time.
A consistent savings schedule enables people to be financially ready for any situation. It also allows someone to achieve their life's long-term and short-term financial goals. Furthermore, one can build a financial buffer for the future and enjoy stress-free retirement by maintaining a disciplined attitude to saving.
The Government of India (GOI) launched small saving schemes as investment plans to encourage saving and give small depositors a place to grow their funds. Both scheduled nationalized banks and all Postal Service branches frequently offer these plans. In most cases, these programmes do not deduct TDS on invested funds.
The Senior Citizen Savings Scheme (SCSS) and PPF are among the best savings plans in India for investors aged 60 and above. Retirement payments of Rs. 15 lakhs can be invested in one lump payment by retirees over the age of 55 through SCSS. Both programmes provide a safe return on investments and tax savings on capital gains.
A PPF account can be opened by any resident of India who is older than 18. Since there is no upper age limit for opening a PPF account, even senior persons can invest in PPF.
These are the five best savings plans in India 2023:
Sukanya Samriddhi Yojana
Post-Office Monthly Income Plan
Public Provident Fund
Savings programme for seniors
National Savings Certificate
The year 2023 is the one to combat the effects of inflation on regular expenditure and savings, and as Indian citizens shift their focus to purchasing financial instruments that might be able to assist them in doing so.
Financial trends such as a greater emphasis on well-being post-covid, constructing wealth to prepare for a potential global recession, protecting oneself from the effects of an increase in the cost of essential goods and services like gas, crude oil, and power production, and also handling tax implications, are expected to shape investor decisions in 2023.
Life Insurance
Health Insurance
Pet Insurance
Motor Insurance
Travel Insurance
Commercial Insurance
