Savings Plans

Young individuals – start early, save more

• Choosing the best savings plan for young investors allows them to build a larger saving amount over time.

• Starting early often means lower life insurance premiums.

• Helps achieve long-term life goals without financial stress.

Newlyweds – secure your future together

• A savings plan may help plan for children’s higher education, retirement, or buying a home.

• Encourage disciplined saving habits as you begin your life together.

Parents – safeguard your child’s dreams

• A child education savings plan ensures funds for your child’s aspirations.

• Provides financial support at important stages of life like school, college, or higher studies.

Entrepreneurs – fund growth and stability

• A low-risk investment for entrepreneurs may help meet personal and business goals.

• May be used for business expansion or to maintain stability during challenging times.

Atal Pension Yojana (APY)

The Atal Pension Yojana (APY) is a social security scheme supported by the Government of India that offers a monthly pension to individuals in their retirement years. Based on the National Pension Scheme framework, it provides fixed payouts between Rs. 1,000 and Rs. 5,000 per month, determined by the subscriber’s age at enrolment, contribution amount, and tenure. These benefits are backed by the Central Government, ensuring stability for retirees. Initially, it was open to all citizens aged 18 to 40 with a savings account. However, since October 2022, it is available only to those who have never been taxpayers, making it a reliable retirement planning option.

Employee Provident Fund (EPF)

The Employees’ Provident Fund (EPF) is a government-supported savings scheme that helps employees in the organised sector build capital for future needs, such as a financially secure retirement. In this scheme, both the employee and the employer contribute a fixed portion of the employee’s salary to the fund every month. The scheme is managed by the Employees’ Provident Fund Organisation (EPFO). The interest rate on EPF is reviewed annually by the EPFO.

Endowment Plans

Endowment plans are life insurance policies that combine protection with a savings component. They are structured to help policyholders build wealth for future financial goals while ensuring that their family receives financial support in case of an unforeseen event.

Kisan Vikas Patra (KVP)

Kisan Vikas Patra (KVP) is a small savings scheme offered by India Post, originally introduced for farmers but now open to all Indian citizens. It is a low-risk investment option that currently offers a fixed interest rate of 7.5% per annum for a term of 2 years and 6 months. Backed by the Government of India, it ensures returns as specified on the KVP certificate. An account may be opened at any post office with a minimum deposit of Rs. 1,000 and in multiples of Rs. 100 thereafter. The KVP certificate may also be pledged as collateral to obtain a loan.

Money Back Plans

Money-back life insurance policies are savings-oriented plans that combine insurance protection with periodic payouts during the policy term. They are designed for individuals who prefer receiving funds at specific intervals to meet planned short-term or long-term needs, such as purchasing a car, buying a home, or covering other significant expenses.

Monthly Income Plans

Monthly Income Plans are savings plans that give a steady income at regular intervals. They are suitable for people who want extra income to support their earnings or to pay for regular expenses like retirement needs or daily household costs.

Mutual Funds

Mutual Funds collect capital from many investors and invest it in a mix of assets like shares, bonds, and other securities. They're managed by experts to meet the fund’s goal. They suit different risk levels, from safer debt funds to higher-risk equity funds, and offer easy access to funds, clear information, and a chance for long-term growth. While returns are not guaranteed, their diversification helps reduce risk, making them a suitable option for those looking to grow wealth steadily over time.

Guaranteed Savings Plan

A Guaranteed Savings Plan is a type of life insurance-cum-investment product that offers assured returns along with life cover. It's designed for individuals who prioritise capital protection and predictable outcomes over ¹⁰market-linked volatility. The premiums paid qualify under Section 80C, and maturity proceeds are ¹tax-free under Section 10(10D). In addition, ⁷riders like accidental death, disability, and waiver of premium can be added.

National Pension Scheme (NPS)

The National Pension Scheme (NPS) is a voluntary savings plan that helps you build funds for retirement. It is open to all Indian citizens and offers flexibility, low cost, and professional management of your contributions, which are invested in ¹⁰market-linked securities based on your chosen plan. You need to contribute regularly during your working years, and at retirement, you may withdraw part of the savings and use the rest to buy an annuity that gives you a pension for life. NPS also offers extra ¹tax benefits of up to ₹50,000 on voluntary contributions.

National Savings Certificate

The National Savings Certificate (NSC) is a fixed-income investment offered by India Post and backed by the government. It provides fixed returns, often higher than regular fixed deposits, and allows investments of up to ₹1.5 lakh per year to be claimed as a ¹tax deduction under Section 80C of the Income Tax Act, 1961. It is suitable for low-risk investors, and the interest rate, revised quarterly by the government, is 7.7% per year for Q4 FY2023-24.

Post Office Monthly Income Scheme (POMIS)

The Post Office Monthly Income Scheme is a government-backed savings plan that allows investments up to ₹9 lakh for individual accounts and ₹15 lakh for joint accounts. It offers a safe way to earn a fixed monthly income without market risks. Managed by the Ministry of Finance, the scheme provides an interest rate of 7.4% per annum, payable every month, effective from 1 January 2024.

Post-Office Savings Scheme (POSS)

The Post Office Savings Scheme is a safe and reliable option for individuals with a low-risk appetite. It offers an easy and convenient account opening process, including the option to open an account in a minor’s name. With an interest rate of 4%, it provides stable returns and is suitable for those seeking a secure way to save.

Pradhan Mantri Jan Dhan Yojana

The Pradhan Mantri Jan Dhan Yojana (PMJDY) offers a zero-balance savings account with interest on deposits, making it a practical savings plan for low-income individuals. It promotes financial inclusion by encouraging regular saving habits and provides added benefits like accident insurance, life cover, and access to government subsidies. This helps account holders gradually build financial discipline and security.

Public Provident Fund (PPF)

The Public Provident Fund (PPF) is a government-backed savings scheme in India designed for long-term retirement planning. It has a tenure of 15 years with facility for partial withdrawals and loans during the term. PPF offers safe returns along with ¹tax benefits on contributions, interest earned, and maturity amount. Investors may contribute between ₹500 and ₹1.5 lakh in a year, making it a flexible and secure way to build savings over time.

Recurring Deposits

A Recurring Deposit (RD) is a savings option where investors deposit a fixed amount regularly and earn interest on it. The tenure may range from six months to ten years, and the interest rate depends on the bank or financial institution offering it. This option helps in building savings gradually while earning steady returns.

Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) is a government-supported savings plan under the ‘Beti Bachao Beti Padhao’ initiative to help parents save for the future of a girl child aged 10 years or below. It offers an interest rate of 8.2% per year, compounded annually, along with ¹tax benefits on the amount invested, the interest earned, and the maturity amount. The scheme is designed to support expenses like education and marriage, providing a safe and rewarding way to build savings over time.

Unit-Linked Insurance Plans (ULIPs)

Unit-Linked Insurance Plans (ULIPs) are products that provide both life insurance and investment benefits. They offer life 5cover and allow investment in equity, debt, or hybrid funds based on the investor’s risk preference. Investors may also switch between these fund options to match their financial goals and risk level.

Voluntary Provident Fund (VPF)

Voluntary Provident Fund (VPF) is a scheme where employees may choose to contribute more than the regular limit applicable to their Employee Provident Fund (EPF). The extra amount earns the same interest rate as EPF, which is decided each year by the Employees’ Provident Fund Organisation (EPFO).  

Senior Citizen Savings Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) is a secure savings plan for Indian residents aged 60 years or above. It allows a one-time investment of ₹1,000 to ₹30 lakh for a period of five years, offering a fixed interest rate of 8.2% per year. The account may be opened at authorised banks or post offices and also transferred between them.  It can be extended for three more years, making it a convenient option for retirement savings.

Annuity Plans

An annuity plan is a contract between you and an insurance company where you pay a lump sum or regular premiums, and in return, you receive periodic payouts—monthly, quarterly, or annually—for a specified period or for life. The contributions may qualify for ¹tax deductions under Sections 80C and 80CCC.