Top 10 Saving Schemes in India 2024, Interest Rates, Comparison, Benefits Savings Plan A financial product or curriculum designed to help Indian citizens save and invest their money to earn higher interest rates in return. It is a very systematic and structured method of investing. These are offered through banks, financial institutions and government agencies. The government offers several investment options to Indians to avail tax cuts and exemptions through the Income Tax Act of 1961. In India, there are many savings schemes available to meet the various needs and preferences of individuals.
Today we have brought for you a list of different types of savings schemes with their interest rates, comparison and benefits. These plans are offered through both government and private financial institutions and provide individuals with opportunities to save and invest their money in a structured manner.
Top 10 Saving Schemes in India 2024
We are sharing the Top 10 Saving Schemes in India 2024 Tax-saving Fixed Deposits (FDs), Unit Linked Insurance Plan (ULIP), Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF), Employees’ Provident Fund (EPF), National Pension System (NPS), Sukanya Samriddhi Yojana Account (SSY), Atal Pension Yojana (APY), Senior Citizens Saving Scheme (SCSS), Post Office Saving Scheme (POSS) in India 2024, regarding details like Interest Rate, Tenure, Minimum investment and Maximum investment are given below
Tax-saving Fixed Deposits (FDs) Scheme 2024 in India
It is a special investment offered through private or public banks in India that offers tax benefits under Section 80C of the Income Tax Act, 1961. It allows investors to invest a fixed amount for a fixed period of time with the maximum investment eligible for tax deduction. Under Section 80C Rs. 1.5 lakh per financial year. Tax-saving FDs usually have a lock-in time of 5 years. Tax-saving fixed deposits (FDs) generally do not allow premature withdrawal or partial withdrawal.
- Interest rate: 5.75% to 8.60% PA
- Tenure: 5 years
- Minimum Investment: Rs. 100
- Maximum Investment: No Limit
Unit Linked Insurance Plan (ULIP) Scheme 2024 in India
Unit Linked Insurance Plan (ULIP) is a better-than-usual investment that combines the benefits of insurance coverage with investment opportunities. This is a program that offers two benefits. Under ULIP, the premium paid by the investor goes into life insurance and the rest goes into equity, debt or balanced funds. This is a flexible investment option for Indians. ULIPs enjoy tax benefits under the Income Tax Act of 1961. Premium paid for life insurance is eligible for tax deduction under section 80C subject to the maximum limit. It also comes with a lock-in period of 5 years.
- Interest rate: Varies, not fixed.
- Tenure: 5 – 20 years
- Minimum Investment: Rs 2500
- Maximum Investment: No Limit
Equity Linked Savings Scheme (ELSS) Scheme 2024 in India
ELSS is a type of mutual fund that offers tax benefits under Section 80C of the Income Tax Act. It gives less lock-in time compared to other savings plans. It provides opportunities for long-term wealth creation by investing in equities. Equity Linked Savings Scheme funds invest in the stock market and can give higher returns to investors compared to traditional tax-saving schemes. There is a tax deduction of up to Rs. 1.5 lakh, and the option to invest through systematic investment plans (SIP). It is flexible and risk free.
- Interest rate: Varies, not fixed.
- Tenure: 3 years
- Minimum investment: Rs 100
- Maximum Investment: None
Public Provident Fund (PPF) Scheme 2024 in India
Public Provident Fund (PPF) is one of the most popular and safe investment schemes in India. It is a long-term investment, a safe and tax-efficient way to save for retirement through the Government of India. PPF accounts can be opened in designated banks and post offices across India. Additionally, they offer higher interest rates set by the government and usually higher than the interest rates offered by traditional savings accounts. The interest rate changes every year, it is eligible for tax deduction under section 80C of the Income Tax Act up to a maximum limit of Rs. 1.5 lakh per financial year.
- Interest rate: varies, currently 7.1%
- Tenure: 15 years
- Minimum investment: Rs 500 per year
- Maximum investment: Rs 1.5 lakh per year
Employees’ Provident Fund (EPF) Scheme 2024 in India
Employees’ Provident Fund (EPF) has been launched through the Employees’ Provident Fund Organization (EPFO) to help employees save money for their retirement. It is a type of social security scheme established by the Government of India. It gives financial security and stability to employees during their retirement years. Under this scheme, both the employee and the employer contribute a monthly amount. For employees, the contribution is 12% of basic salary plus dearness allowance. Employees’ Provident Fund funds are eligible for tax deduction up to the maximum limit under Section 80C of the Income Tax Act. It is tax-free, and withdrawal is after 5 years.
- Interest Rate: Varies, currently 8.25%
- Tenure: No limit
- Minimum investment: 12% of basic salary
- Maximum Investment: None
National Pension System (NPS) Scheme 2024 in India
The National Pension System (NPS) is a long-term retirement savings scheme of the Government of India. It provides regular income during retirement years. It is regulated through the Pension Fund Regulatory and Development Authority (PFRDA). The scheme is open to all employees in public, private and unorganized sectors as well as self-employed individuals. The National Pension System focuses on low cost and transparency. Additionally, it is eligible for tax deduction under section 80C of the Income Tax Act, subject to certain limits, and partial withdrawal is allowed for specific purposes. The interest rate in NPS is not confirmed.
- Interest rate: Based on pension fund returns
- Tenure: Up to 60 years
- Minimum investment: Rs 1000 per year
- Maximum Investment: None
Sukanya Samriddhi Yojana Account (SSY) Scheme 2024 in India
Sukanya Samriddhi Yojana Account (SSY) is a government-based savings scheme to promote the welfare and financial security of girl children in India. It is released by the Prime Minister of India under the Beti Bachao Beti Padhao initiative. This is a long-term savings for the girl’s education and marriage expenses. Under the SSY scheme, parents can open an account in a bank or post office in the name of a girl child below 10 years of age. This scheme offers an interest rate, which is set by the government and compounded annually. Additionally, it is eligible for tax deduction under Section 80C of the Income Tax Act, which gives additional savings benefits.
- Interest Rate: 8.2%
- Tenure: Up to 21 years
- Minimum investment: Rs 1000 per year
- Maximum investment: Rs 1.5 lakh per year
Atal Pension Yojana (APY) Scheme 2024 in India
Atal Pension Yojana (APY) is also a government based pension scheme. It has been issued to provide a permanent pension income to unorganized sector workers during their old age. The government launched this scheme administered through the Pension Fund Regulatory and Development Authority (PFRDA). Indian citizens between 18 to 40 years can open Atal Pension Yojana account in banks and post offices. This is a special scheme launched for Below Poverty Line (BPL) people. Therefore, it is very economical. Citizens can start with as little investment as Rs. Pension of Rs 42 per month. 1,000 per month. Moreover, this scheme is eligible for tax benefits under section 80CCD of the Income Tax Act.
Once investors reach the age of 60, they become eligible to receive a guaranteed pension income for life, which they can use to meet their financial needs during retirement. APY Pension Scheme ranges from Rs. 1,000 to Rs. Rs 5,000 per month, depending on contribution level
Senior Citizens Saving Scheme (SCSS) Scheme 2024 in India
Senior Citizens Savings Scheme (SCSS) is a government-based savings scheme for senior citizens in India. This scheme was started to help senior citizens aged 60 years and above. The Senior Citizens Savings Scheme is organized by the government through authorized banks and post offices. It provides a secure opportunity to retirees to invest their savings and provide regular income during their retirement years. SCSS has a fixed maturity period of 5 years. The interest rate is determined by the government and is subject to revision from time to time. Therefore, it does not remain constant throughout life. Senior Citizens Savings Scheme is eligible for tax deduction under Section 80C of the Income Tax Act.
- Interest Rate: 8.2%
- Tenure: 5 years
- Minimum investment: Rs 1000
- Maximum investment: Rs 15
Post Office Saving Scheme (POSS) Scheme 2024 in India
Post Office Savings Schemes refer to a number of investment options issued through the Indian Postal Service. There are many schemes available on India Post. This is the most popular form of savings as it involves minimal risk and guaranteed returns. As per the last update of January 1, 2023, their interest rate for Post Office Savings Scheme is set at 4.00%. Moreover, it is a very simple and quick plan. The investor will have to open a savings account in the post office and start saving some amount.
- Interest Rate: 4%
- Tenure: None
- Minimum investment: Rs 50
- Maximum Investment: None
Best Saving Schemes 2024 in India Interest Rates Comparison
| Best Saving Schemes 2024 in India | Saving Schemes Interest Rates 2024 |
| National Saving Scheme | 7.9 % |
| Senior Citizen Saving Scheme | 8.5 % |
| Recurring Deposits Scheme | 6.7 % |
| Post Office Monthly Income Scheme | 6.6 % |
| Public Provident Fund | 7.1 % |
| Kisan Vikas Patra | 7.6 % |
| Sukanya Samriddhi Yojana | 7.6 % |
| Atal Pension Yojana | N/A |
| Employee Provident Fund | 8.6 % |
| Pradhan Mantri Jan Dhan Yojana | 2% Above base rate not exceeding 12% |
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