Best Saving Schemes in India 2020

There are a plethora of investment options in the market for various financial requirements.  Before setting eyes on a particular financial instrument, an individual must select between saving schemes as per their risk appetite. Individuals not willing to take risks are more likely to prioritise secured investments. So, it is advisable for them to choose a financial product that offers high stability with guaranteed returns.

Several financial institutions offer savings schemes that are regarded as safe investment options equipped with lucrative features and benefits for better financial management.

Top savings schemes in India

  • Fixed deposits.
  • Equity.
  • Gold investment options.
  • Recurring deposits.
  • Public provident funds.
  • National pension schemes.


Fixed Deposits

Fixed deposits are regarded as one of the safest saving schemes, as its exposure to market risks is negligible. It offers attractive interest rates for investors, suitable as both short-term and long-term investment avenues. Various lending institutions including NBFCs like Bajaj Finance offers Fixed Deposits with an interest rate notching up to 8.70% per annum. Apart from ensuring guaranteed returns with steady growth of the invested corpus, it also acknowledges the need to safeguard the principal sum.

Other notable features of FD are –

  • The unique added interest rate for senior citizens on the prevailing rate. This feature caters to the financial needs of the senior citizens allowing them to avail interest pay-offs monthly, quarterly and annually.
  • With high credibility ratings conferred by CRISIL/ICRA, FDs stand as one of the safest investment options with a minimum risk quotient.
  • FDs offer an interest up to 8.70%, offering substantial return on investment as a savings instrument.
  • Investors will also have the provision to avail loans against fixed deposit without liquidating the funds entirely.


ELSS or equity-linked savings scheme is a financial tool that falls under the Section 80C, Income Tax Act.  It offers the highest rate of returns among all the investment plans that fall under Section 80C. However, note that ELSS investments are market-linked and do not guarantee returns.

Gold investments

Gold investment is one of the most traditional ways of parking corpus to enjoy higher returns. The value of gold keeps on soaring with each passing day because of which people resort to gold investments through gold bonds or ETFs.

Public Provident Fund

This saving scheme is backed by the government and is also regarded as a safe investment plan with attractive interest offers on the principal. Under this scheme, the investors can enjoy the benefit of full tax exemption.

Recurring Deposits

Recurring deposits are also widely preferred because of the flexibility to deposit funds at regular intervals considering the financial strength of the investor. Various financial institutes offer recurring deposits as a safe investment scheme for the investors where they can stock their money and avail higher returns.

National Pension Scheme

This investment option is for retired citizens of India, backed by the government for its employees. It started in 2004 intending to provide a regular source of income for the senior citizens so they can meet their financial requirements with ease. In this scheme, an investor can deposit fixed amount of money throughout their employment tenor to avail a portion of the corpus after retirement and purchase an annuity to secure a regular pension scheme or monthly income.

Senior Citizen Savings Schemes

It is also a government-backed investment option and is a widely recommended investment scheme for senior citizens considering the substantial rates of interest offered, now at 8.6%. This savings scheme stretches up to 5 years from the date of the opening of the account. However, the rate of interest is susceptible to change due to market fluctuations or risks.

Apart from the above mentioned investment avenues, there are other savings scheme which has garnered popularity, mainly National Savings Certificate (NSC), stock markets, and real estate.

Therefore, an individual should concentrate on the market hazards that can throw their investments off track and select a financial instrument that can help them generate a strong corpus over time.


Author Bio:

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at HighlightStory