Top Investment and Savings Schemes in India

A keen investor in India has a wide range of investment options available to them. Government-backed plans, such as the Employees' Provident Fund (EPF), Public Provident Fund (PPF), and National Pension Scheme (NPS), are secure investments. Fixed Deposits (FDs) and Recurring Deposits (RDs) are just as safe, and work well for investors with a low risk appetite.

Savings and Investment Plans in India
 

The following are some of the best savings and investment schemes available in India.

Equity Linked Savings Scheme (ELSS)
 

When compared to PPF and some other investment schemes, ELSS, with the potential for higher returns over time, is positioned as one of the best savings schemes in India. It is a tax-advantaged mutual fund, which means it allows you to claim deductions under Section 80C. It has a lock-in period of three years, and any earnings exceeding ₹1.25 lakh are taxed at 12.5% as LTCG (long-term capital gain). ELSS provides the same returns as stocks, which is expected to be around 12% in the future.

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Tax Saving Fixed Deposit
 

A tax-saving fixed deposit is an alternative to consider if you are searching for a reasonably low-risk, safe investment choice. In any fiscal year, you can claim a maximum tax deduction of ₹1.5 lakh under section 80C of the Indian Income Tax Act of 1961. If you choose to invest your savings in a tax-saving fixed deposit with IDFC FIRST Bank, you can enjoy high interest rate, which maximises your profit.

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Equity Mutual Funds
 

Equity Mutual Funds, as the name implies, invest largely in equity. 65% of an equity mutual fund’s assets must be invested in stocks and other types of securities, according to the Securities and Exchange Board of India (SEBI) regulations.  An equity mutual fund is professionally managed by a fund supervisor, who makes investment decisions based on market capitalisation and other business fields. Since the assets are mostly traded on stock exchanges, they tend to be high risk; however, the reward is high as well. The average rate of return is predicted to be 12%, depending on the mutual funds you choose to invest in.

While conventional, low risk investment tools have been largely popular in India, the trend is slowly changing. Equities, mutual funds, and corporate bonds have all become attractive investment options, as they offer high returns.

National Pension System (NPS)

NPS is a long-term financial programme geared towards retirement. The Pension Fund Regulatory and Development Authority (PFRDA) manages the NPS. According to the investor's preferences, the fund invests in stocks, bonds, fixed deposits, liquid funds, government bonds, and so on. You can determine what portion of your money can be placed in equities through this programme.

The minimum yearly payment for an NPS Tier-1 account to stay active is ₹1000. The collected interest in this programme is tax-free under the old regime. Because this programme matures only when the investor reaches 60 years of age, the lock-in duration is determined by the investor's present age. You can only remove 60% of the tax-free amount once you have turned 60.

The remaining 40% of the fund is meant for regular pension. Because of high rate of return and its viability, NPS has often been termed the best savings scheme in India.

Public Provident Fund (PPF)
 

PPF continues to be one of the most reliable and secure long-term investment options in India. You can open a PPF account through a post office or a designated bank branch. The investment has a lock-in period of 15 years. Partial withdrawals are allowed from the 7^th financial year onwards, with a limit of up to 50% of the balance available at the end of the 4^th year or the preceding year, whichever is lower. Once the 15-year term ends, the account can be extended in blocks of five years without any additional deposits or with continued contributions.

During each 5-year extension, you can withdraw up to 60% of the balance available at the start of the extension period, spread over 5 years. PPF earns compounded interest annually, and the current interest rate is 7.1% p.a. as per the latest government notification for 2025. This makes PPF a preferred choice for conservative investors seeking tax benefits, safety, and steady long-term growth.

IDFC FIRST Bank: Power your financial growth from one trusted platform
 

Looking to invest smarter? IDFC FIRST Bank makes it easy to start and grow your financial journey, all from a single, trusted platform. Open a high-interest Digital Savings Account offering up to 7.00% p.a. interest with monthly interest credits, so your money works harder from Day 1.

Seamlessly explore top investment avenues like:

• Public Provident Fund (PPF) and Employee Provident Fund (EPF) contributions via partnered channels.
• National Pension System (NPS) contributions through the IDFC FIRST Bank app or payroll.
• ELSS & Equity Mutual Funds help you invest in tax-saving SIPs or lump-sums via the Bank’s investment platform and avail Section 80C benefits.
• Fixed Deposits with customisable FD laddering tools to plan returns across different tenures and interest cycles.

Depending on the variant of your IDFC FIRST Bank Savings Account, here’s what else you enjoy:

25K AMB variant – Premium benefits for high-value savers
 

• Free and unlimited ATM withdrawals at any bank, anywhere in India
• Higher daily purchase limit of ₹6 lakh
• Higher daily ATM withdrawal limit of ₹2 lakh
• Complimentary domestic airport lounge access
• Free Personal Accident Insurance Cover of ₹35 lakhs
• Free Air Accident Insurance Cover of ₹1 crore

10K AMB variant – Solid coverage with great flexibility
 

• Free and unlimited ATM transactions at any bank, anywhere in India
• Daily ATM withdrawal limit of ₹1 lakh
• Purchase limit of ₹4 lakh
• Free Personal Accident Insurance Cover of ₹5 lakhs
• Free Air Accident Insurance Cover of ₹30 lakhs
• Lost card liability protection of up to ₹4 lakhs
• Purchase protection of up to ₹50,000

Conclusion
 

While these investment options are among the best savings schemes in India, you can also invest in other schemes. If you are in the market for an investment that will get you the best returns, you can head to the IDFC FIRST Bank website. From mutual funds and insurance to Senior Citizens Savings Scheme (SCSS), you can invest in any instrument through IDFC FIRST Bank. APPLY NOW!