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Savings plans are investment choices that help you reach your financial objectives and grow your money responsibly. The most beneficial savings plans allow you to invest for a longer time period and quickly convert your money into investments. 

Investment programs encourage you to invest a portion of your income, even small amounts, towards investments. Are you thinking about investing in government savings?

Here are the Top 5 Highest Interest Rate Schemes in India

  1. Senior Citizens Savings Scheme (SCSS)
  2. Sukanya Samriddhi Yojana (SSY)
  3. National Savings Certificate (NSC)
  4. Kisan Vikas Patra (KVP)
  5. Public Provident Fund Scheme (PPF)

1. Senior Citizens Savings Scheme

Investing in retirement funds paves the way for a stable post-retirement life in which one is independent of others to meet every day needs. Senior Citizen Savings Scheme (SCSS) has been started specifically for these people.

The Indian government offers retirement benefits under the Senior Citizens Savings Scheme (SCSS) accounts. Senior Indian citizens can benefit from the account when they deposit a lump sum, either individually or jointly, to the plan. 

Apart from regular income after retirement, the account will provide benefits with regard to income taxes. Anybody over 60 is eligible for the Senior Citizens Savings Scheme, which provides security and long-term, profitable savings solutions.


Senior Citizen Savings Scheme (SCSS)Particulars
Interest Rate8.2% p.a.
Tenure5 years
Minimum InvestmentRs.1,000
Maximum InvestmentRs.30,00,000
Tax BenefitsAvailable under Section 80C upto Rs.1.5 lakh
Nomination FacilityAvailable
Premature ClosureAvailable

2. Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is an Indian government savings program that aims to improve the lives of girls in India. It aims to help parents in setting up a fund for their female child’s future higher education as well as other needs.

SukanyaSamriddhiYojana (SSY) is a deposit system designed specifically for girls. The goal of this program was to give the girl child a stable financial future.

By making consistent contributions, you can create a sizeable amount over time that you can use to help your child achieve their life goals. It is one among the several programs the government started as part of the BetiBachaoBetiPadhaoYojana.


Interest Rate8.0% p.a.
Maturity21 years after opening the account and a minimum of at least 15 yearsof deposits are required.
Minimum InvestmentRs 250 (Initial Deposit)
Maximum InvestmentRs 1,50,000
Account HolderA parent or guardian of the girlwill take care of the account if the girl is a minor.The girl can take control of the account once she turns 18
Tax BenefitsAvailable under Section 80C upto Rs.1.5 lakh

3. National Savings Certificate (NSC)

Through a post office, you can set up a National Savings Certificate, which is a savings and investment plan. For making small investments, this Government Savings Bond is well suited. 

Every Indian resident can get these certificates from any post office branch in the country. The program is supported by the government and is meant to provide investors with steady earnings.

The process by which National Savings Certificate investments are made differs from other savings plans. A short-term investment is required for NSC. Return rates are fixed by the government for this short-term investment. 

You can’t increase your investment in the certificate once you have made the initial deposit because the interest for the year is credited to your account. You can, however, use the money to purchase another certificate from any post office. 

The NSC interest rate is the same as what was provided at the time of purchase and will not change over the certificate’s term.


National Savings Certificate (NSC)Particulars
Interest Rate7.7% p.a.
Lock-in period5 years
Minimum InvestmentRs.1,000
Maximum InvestmentNo limit
Tax BenefitsAvailable under Section 80C upto Rs.1.5 lakh
Risk profileLow-risk

4. Kisan Vikas Patra

India Post launched Kisan Vikas Patra, a small savings program, in 1988. It is considered one of the best government investment schemes for the benefits it offers.

The primary purpose of the scheme was to promote the habit of long-term saving for Indian citizens. Several revisions have been made to the program, and the most recent one has a 115-month duration, or nine years and five months. 

The minimum amount that can be investedRs. 1000. The amount invested would double during the 115-month tenure, and after the tenure, one can withdraw the amount.


Interest Rate7.5% p.a. and is decided by the government and it can vary every three months
Tenure115-month duration, or 9 years and 5 months. 
Minimum InvestmentRs.1,000
Maximum InvestmentMultiples of 100 and no maximum amount
Tax BenefitsNo tax benefits
Lock-in period2 years 6 months
Account HolderThe KVP can be purchased by an adult for themself or on behalf of a minor or by two adults.

5. Public Provident Fund scheme

The Public Provident Fund scheme is one of the most popular long-term savings and investment programs. Its popularity is because of its favourable tax benefits, returns, and safety features.

The National Savings Institute of the Finance Ministry initially made the PPF open to the general public in 1968. It has since become an effective instrument for generating long-term profit for investors.

Investors use the PPF as a method to build a fund for their retirement as they continuously set out large sums of money over a long period of time. The PPF has a 15-year maturity and the facility to extend the tenure.


Public Provident Fund schemeParticulars
Interest Rate7.1% p.a.
Tenure15 years
Minimum InvestmentRs.500
Maximum InvestmentRs 1.5 lakh per annum.
Tax BenefitsAvailable under Section 80C upto Rs.1.5 lakh
Risk ProfileGuaranteed and risk free returns

Final thoughts

The above given are the highest interest rate scheme offered by the Indian government. A wide range of investors are given consideration for these schemes. As these schemes get government support, favourable rates of return are guaranteed.

However, different schemes have different interest rates, tax benefits, and lock-in periods. So, investors need to review the plans in detail and decide which one best suits their financial goals.

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