9 Safe Investments with High Returns in India

Safe-Investments-with-High-Returns-in-India9 Safe Investments with High Returns in India

There are several investment options in India. Some are safe, some might be risky, some would give lower returns and some might give high returns. Low risk investors would always want to invest in safe investments with high returns. If you are among such investor, this article is for you. Which are the Safe Investments With High Returns in India? One can invest in these options based on the features and to achieve relevant financial goals.

Also Read: DCB Health Plus FD Offers 6.9% Interest Rates + Free Health Benefits

What are safe investment options with high returns indicated here?

Many individuals wish to accumulate wealth as well as multiply their money via investments, but at the same time have a very low-risk appetite. They do not want to lose their hard-earned money at any cost. So, they desire to park their funds in the safest of investment channels. Generally, the investment schemes launched or backed by the Government of the country are considered as one of the securest modes of investments. The returns in such investments may not be as high as market-linked, high-risk investments but the value of the investments will never go low.

9 Safe Investments with High Returns in India

Now let us get into more info about these investment options, its features, how much one can invest and any limiting factors.

1) Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme (SCSS) is a Government scheme that allows the resident senior citizens (aged above 60 years) of the country to invest in the scheme and earn quarterly payouts from the deposit.

Individuals who have attained the age of 55 and have retired under applicable superannuation or VRS rules are also eligible to invest in the scheme provided that the account has to be opened within one month of the receipt of the retirement benefits.

Non-Resident Indians (NRIs), Person of Indian Origin (PIOs), and Hindu Undivided Family members are not eligible to open this account.

The account can be opened at any bank or post office.

The scheme comes with a duration of 5 years, which can be extended for 3 more years.

The minimum deposit in this scheme is Rs 1,000 and the maximum is Rs 15 Lakhs. Deposits to be made in the multiples of 1,000. Only a one-time lump sum investment is allowed.

The interest earned is fully taxable based on the individual tax applicable.

If the payable interest is not claimed by the account holder in any quarter, such interest shall not earn additional interest.

Premature withdrawal is allowed but with the penalties.

In case, the primary account holder dies before the maturity of the account, the account will be closed and all then maturity proceeds will be transferred to the legal nominee.

The investment made under SCSS is eligible for income tax deduction benefit under Sec 80C of the IT Act.

Currently, the rate of interest offered on SCSS is 7.4% per annum, which is the highest among all the small saving schemes in India. The rate of interest is reviewed quarterly by the Ministry of Finance and subject to periodic change.

It is an excellent means to accumulate funds for your retirement and is considered one of the Safe Investments with High Returns in India for senior citizens.

2) Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) is a small deposit scheme launched by the government of India for the girl child below the age of 10.

The account can be opened in any post office or authorized branches of a commercial bank.

The minimum deposit amount is Rs 250 per year and the maximum is Rs. 1,50,000.

The account remains operative for 21 years or the marriage of the child, whichever is earlier after she turns 18.

The government fixes the interest rate on a quarterly basis. Currently, the scheme offers an interest rate of 7.6% per annum.

One must invest every year for at least 15 years from the date of opening the account to earn interest till maturity.

No loan can be obtained against this scheme.

The maturity amount is all tax-free.

Contribution up to Rs 1,50,000 can be availed as deduction under section 80C of the Income Tax Act, 1956.

Premature closure is possible only in the case of the death of the account holder.

SSY is one of the Safe Investments with High Returns in India for those who want to save their daughter future either for marriage expenses or for future education.

3) Public Provident Fund (PPF)

Public Provident Fund is a small savings scheme launched by the Ministry of Finance in 1968.

The account can be opened by any person who is a citizen of India and at any age.

The minimum investment is Rs 500 per year and the maximum is Rs 1,50,000.

The PPF interest rate is fixed by the Finance Ministry every quarter. Presently, it is offering an interest rate of 7.1% per annum.

The scheme comes with a tenure of 15 years. The tenure can be extended in the block of 5 years after the completion of the tenure of 15 years. There is no need to deposit money in the extended period.

The account can be opened with Rs100. The minimum investment is Rs 500 that has to be invested every year for 15 years and the maximum is Rs 1,50,000.

One can obtain a loan from a PPF account subject to certain conditions.

Partial withdrawal can be made after the completion of 5 years of the scheme.

Premature closure is not allowed within 5 years of opening the account. Thereafter, it can be closed only on specific conditions.

PPF can be used as one of the best and Safe Investments by low risk investors either for accumulating money or for retirement purpose.

4) Kisan Vikas Patra (KVP)

Launched in the year 1988, Kisan Vikas Patra (KVP) is a small Government-backed small saving investment scheme in which the investment certificates are available in the denominations of Rs 1000, Rs  5000, Rs 10,000 and up to Rs 50,000.

The certificates can be obtained from any Indian Post Office branch or selected Public Sector Banks.

The scheme comes with an offer to double the investment within a given tenure. Currently, this tenure is 124 months.

The current rate of interest is 6.9%. The interest accrued on the invested fund is compounded yearly, assuring more returns to individuals.

The minimum investment is Rs 1,000 and there is no maximum limit.

NRIs, HUFs, and companies are not eligible to invest in the scheme.

The scheme was launched with the motive of mobilizing savings and inculcate a habit of long-term planning.

KVP scheme is not entitled to any deductions mentioned under Section 80c. If your motto is to save tax, you should avoid this saving scheme.

The amount withdrawn post maturity is free from TDS (Tax Deducted at Source). However interest earned is taxed in the hands of the investor.

Individuals can avail of a loan against the KVP certificates.

Individuals can withdraw their investments before maturity. If the investment is withdrawn within a year of investment, no interest is paid. Moreover, it attracts penalties.

KVP is one of the safe investment options in India to double to your money.

5) National Saving Certificate (NSC) – 5 Years

National Saving Certificate (NSC) is a fixed income investment scheme with a low-risk appetite.

The scheme can be availed by only Indian individual citizens. HUFs, NRIs, and trusts cannot invest in the scheme.

The certificate can be easily purchased from any post office.

The certificates earn interest that fluctuates every year. Presently, it is 6.8%.

The minimum investment required is Rs 1,000 while there is no upper limit.

The investment comes with a fixed maturity tenure of 5 years.

Investment done under NSC is eligible for income tax deduction u/s 80c upto Rs 1.56 Lakhs

Loan can be obtained on the NSC Certificates.

The interest earned on the certificate gets compounded every year.

There is no option of premature withdrawal.

There is no TDS deduction on maturity. However, interest earned is taxed in the hands of the investor.

NSC is one of the safe investment options in India to save tax that has lowest tenure excluding ELSS where returns are marked linked.

6) Post Office Term Deposits 1 to 5 years

Post Office Term Deposits, also known as Post Office Fixed Deposit are government-backed saving schemes.

The tenure of the Post Office Term Deposits is 1,2, 3, and 5 years.

The following are the interest rates:

Tenure      Rate of Interest

1 year       5.5% p.a.

2 years      5.5% p.a.

3 years      5.5% p.a.

5 years      6.7% p.a.

The deposits with a 5-year lock-in period qualifies for income tax deduction u/s 80c of IT Act.

Premature withdrawal is allowed after 6 months.

Interest is paid annually.

More than one fixed deposit account can be opened in any post office.

The minimum deposit amount is Rs 1,000.

TDS is not deducted on the interest earned.

Nominee can be added even after opening the account.

7) Post Office Monthly Investment Scheme (Post office MIS)

The Post Office MIS is one of the safest modes of investment in which the investor invests a fixed amount of money every month.

The investor must be the resident of India. NRIs are not allowed to invest in the scheme.

The rate of interest is fixed by the Central Government and Finance Ministry every quarter. Current interest rate of POMIS is 6.6%.

The accounts can be held individually or jointly.

The maturity period of the scheme is 5 years.

The minimum limit for deposit in POMIS is Rs 1,500 and thereafter in the multiples of 1000.

There are also limits set for the maximum amount that can be cumulatively invested across all the POMIS accounts-

i) In the case of a sole operated account, the maximum investment allowed in POMIS is Rs 4.5 lakhs

ii) In the case of joint holders (up to 3 joint holders), a maximum of Rs.9 lakhs can be invested in POMIS

Individuals above the age of 10 are eligible to invest in the scheme.

There is no limit on the number of accounts held by an individual, however one should maintain the limit of maximum amount at any point of time.

There is no TDS on maturity.

The investments in PO MIS doe not quality for deduction u/s 80c.

PO MIS is one of the safest investment options to get regular income in India.

8) Post Office Recurring Deposits

Post Office Recurring Deposit is one of the best ways to create wealth by saving very small sums of money every month.

One has to contribute a fixed sum of money every month to the scheme.

The deposits have to be made on or before a particular date, depending on the date of opening the account.

The interest provided by the Post Office is compounded quarterly.

Current Post office RD rate is 5.8%.

The minimum amount set is as low as Rs. 10 to ensure that it is within reach of the very low-income people. (Investment to be made in the multiples of 5).

There is no upper limit set.

The Post Office RD account comes with a minimum tenure of 5 years, which can be extended to 5 more years.

The interest rate is set by the Ministry of Finance every quarter. Currently, it is 5.8% per annum.

In case of defaults, the Post Office RD allows a maximum of 4 defaults after which the account is declared as inactive. Such accounts can be revived within 2 months of the 5th default.

A default penalty of 5 paise is charged for every 5 rupees which is going to be deposited in the account.

For premature withdrawal, one can withdraw 50% of the balance after one year, but it needs to be repaid in a lump sum with interest.

Income earned on Post office RD is taxable.

The deposits done in PO RD are not eligible for income tax deductions.

9) National Pension Scheme (NPS)

The National Pension Scheme was originally launched for the Government employees in the year 2004 which was opened for all in 2009. It is a Government-backed scheme, the main purpose of which is to create a sufficient corpus for retirement.

A citizen of India, whether resident or non-resident can open this account.

The minimum age of joining the NPS is 18 years.

The maximum age is 65 years.

The minimum amount per contribution is Rs 500 and the minimum contribution per financial year is Rs 1,000.

NPS is market-linked, so there is no fixed percentage of returns. However, till now, it has provided returns between 8%-14%.

There are two types of accounts in the NPS scheme – Tier I and Tier II. There is a lot of difference in both the types of accounts, hence let me explain this here.

Particulars Tier I Tier II
Status Default Voluntary
Maximum NPS Contribution No limit No limit
Withdrawals Not allowed Allowed
Tax exemption Up to Rs. 2 Lakh per annum (under Sec. 80C and 80CCD) Rs. 1.5 lakh for Government employees and for others, it is none

Also Read: What is Deposit Insurance and how does it work?

The Tier I account is mandatory for all Government employees on which they have to contribute a minimum of 10% of their basic salary. For everyone else, it is an optional, voluntary investment scheme.

At the time of retirement, one cannot withdraw the entire corpus of the NPS scheme. You are required to keep aside a minimum of 40% of the corpus to receive a regular pension from a PFRDA. The rest of the 60% can be received in lump sum and is tax-free.

Partial withdrawals up to 25% of the contribution are allowed subject to certain conditions.

Amounts contributed for Tier-1 are eligible for income tax exemption u/s 80C and 80CCD totaling to Rs 2 Lakhs.

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Suresh KP


  1. Dear Suresh,

    There are many seniors, typically with the below profile:

    Age above 75 years, fully retired.

    No liabilities of any kind – own house and car, children and grand children are independent with high incomes, no loans or any other obligations.
    Enough of assured income thru safe investments like bank F Ds.

    They still have sizeable surplus funds. As per normal asset allocation models, their investments should be only in guaranteed, safe instruments like bank f ds.

    Where to incvest their surplus funds if they have moderate risk profile and are comfortable with losing part of their corpus.
    Baldev Sood

    1. Hello Baldev, I have written an article for various options available for Sr. Citizens which would be posted in next 4-5 days. You can choose based on zero risk, low risk and moderate risk options.

  2. Good information provided in the article,Thankyou, But I have a query about the NPS tier 2 account, I want to know the tax rate on the gain in the account while we withdraw
    the total collection while closing the account after 60/65 years.

    1. Hello Anand, There is no specific mention about NPS Tier-II withdrawal taxation in the guidelines. Since the official documents do not explicitly mention about the taxation of the withdrawn amount hence, consider that any appreciation (equity or debt) will be added to your taxable income at the time of withdrawal

  3. Sir, please correct me if i am wrong, i suppose we cant deposit monthly in Post Office Monthly Investment Scheme (Post office MIS). Only one lump some deposit is allowed.

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