Government Schemes
Government-backed schemes are such platforms where you’d find all three features, from safety, reasonable returns, to an out-of-mind experience, as it is natural for the investment crowd to look for such things while investing.
This article will discuss the best government schemes that India has, a perfect haven for investment-happy quirky minds who would not otherwise be open to risk towards equity investments; in seeking safe investments, fixed incomes, tax-free benefits, or even better savings plans for children’s education or women’s investments.
Let’s take it easy and see it, shall we?
Table of Contents
Government Schemes To Invest In India
These are some of the Best Government Schemes To Invest In India in 2025.
1. Public Provident Fund (PPF): The All-Time Favourite
Imagine having a safe savings instrument that offers tax-free returns and earns attractive interest — that’s what the Public Provident Fund (PPF) is all about.
PPF is one of the most popular long-term government-backed savings schemes, with a 15-year lock-in period, extendable in blocks of 5 years.
- Current interest rate: Around 7.1% per annum (As of June 2025), compounded annually
- Tax benefits: Contributions are eligible for deduction under Section 80C of the Income Tax Act
- Returns are fully tax-free, making it ideal for retirement planning and long-term wealth creation
Example:
If you invest ₹5,000 monthly for 15 years, you could accumulate around ₹16+ lakhs, all completely tax-free!
2. National Savings Certificate (NSC): Your Trusty Savings Partner
The National Savings Certificate (NSC) is like a dependable friend always available when you need it.
- Interest rate: Roughly 7.7% per annum (compounded annually).
- Tenure: 5 years Tax benefits: Up to ₹1.5 Lakhs under Section 80c
- Minimum deposit ₹1000/- and thereafter in multiples of ₹100.
Example: Invest ₹1 Lakh today in an NSC, and it will almost double your money in 9-10 years, and that too, super safe!
3. Sukanya Samriddhi Yojana: Gift Your Daughter A Bright Future
If you have a little princess at home, this is a very sweet government scheme for becoming the child’s parents in education or marriage; it is the Sukanya Samriddhi Yojana.
- Interest rate: A whopping 8.2% (highest among small savings schemes!)
- Who can invest: Parents/guardians of a girl child aged below 10
- Maturity: 21 years from opening
- Minimum deposit ₹ 250/-, Maximum deposit ₹ 1.5 Lakh in a financial year.
- The account can be prematurely closed in case of the marriage of a girl child after she attains the age of 18 years.
- The account can be transferred anywhere in India from one Post office/Bank to another.
- The deposit qualifies for deduction under Section 80-C of I.T. Act.
Example: Start with ₹250 a year and build a strong fund for your daughter’s dreams.
4. Senior Citizens Savings Scheme (SCSS): Retirement Made Easy
Retirees want nothing but peace of mind. The Senior Citizens Savings Scheme (SCSS) gives them that.
- Interest rate: 8.2% p.a. (quarterly payouts)
- Eligibility: Age 60+ (or 55+ if you’ve taken VRS)
- Lock-in: 5 years, extendable by 3 years
Best government scheme for retirees who will need fixed income government schemes post-retirement.
5. Kisan Vikas Patra (KVP): Double Your Money, Securely
Want to double your money safely without stressing over the stock market? Here’s the Kisan Vikas Patra (KVP).
- Interest rate: 7.5% per annum
- Tenure: Money doubles in around 115 months (~9 years 7 months)
- Eligibility: Any adult or guardian for minors
Example: Invest ₹1 lakh now, and in under 10 years, you will receive ₹2 lakh — guaranteed!
6. Pradhan Mantri Vaya Vandana Yojana: Pension Without Worries
Another marvellous retirement scheme provided by the government is the Prime Minister’s Vaya Vandana Yojana (PMVVY) for providing a pension to retirees.
- Interest percentage: 7.4% per annum
- Duration: 10 years
- Eligible: Senior citizen (age 60+)
You can select from any of the monthly, quarterly, half-yearly and annual pay period among many to suit yourself.
7. Atal Pension Yojana: Pension For All
You are thus not worried to be an employee of the private sector, working without a pension; confinement doesn’t exist within the Atal Pension Yojana (APY)!
- To whom: Workers in the unorganised sector (all others too)
- Pension: Between ₹1,000 to ₹5,000 every month after the age of 60, depending on the contribution
- Government-backed: Yes!
Invest just ₹210 every month at 30, and receive ₹5,000 as a monthly annuity after reaching 60!
8. National Pension Scheme (NPS): Your Retirement Companion
For a more flexible and market-linked choice, you can also try the National Pension Scheme (NPS).
- Who can invest: aged between 18 and 70
- Additional tax benefit: Deduction of additional ₹50,000 under Section 80CCD(1B)
- Choice of investing: Equity, corporate bonds, government bonds
NPS is a perfect blend of safety and growth. At the time of retirement, you can withdraw a portion as a lump sum and use the rest to purchase an annuity.
9. Post Office Monthly Income Scheme: Regular Monthly Income
Looking for a non-market-linked payout that comes regularly? Then you should try the Post Office Monthly Income Scheme (POMIS).
- Interest rate: 7.4% annually.
- Payout: Monthly.
- Term: 5 years.
For example, an investment of ₹9 lakh (the maximum limit for joint accounts) will earn close to ₹5,550 every month!
10. Sovereign Gold Bonds: Shine Like Gold
Relishes gold but detests storing physical gold? Invest in Sovereign Gold Bonds (SGBS) instead!
- Interest rate: 2.5% p.a. (plus gold value appreciation)
- Tenure: 8 years (exit possible post 5 years)
- Bonus: No capital gains tax if held until maturity
Example: Buy SGBS when gold prices go low and your value appreciates, + interest on that.
(Note: SGBs have been discontinued by the GOI in 2025)
Why Choose Government Schemes?
- Safe government investment options in India
- Tax-saving government schemes
- Highest-interest government schemes
- Government schemes for women investors
- Government schemes for education through children
- Best government schemes for pensioners
There are all kinds of investments for long-term, fixed income and retirement objectives that you could mix and create the most ideal portfolio tension.
Also, Check – Best Tax Saving Schemes for Individuals in 2024
Conclusion:
When it comes to safe investment options in India, these government-backed investment schemes shine. Be it for retirement, your child’s future, or just assured fixed income, there’s a government scheme for you.
So, go for the right combination depending on your goals. Remember-
Safe + High returns + Tax benefits = Financial freedom!
Ready to invest smartly with India’s best government schemes?
Please share your thoughts on this post by leaving a reply in the comments section. Contact us via phone, WhatsApp, or email to learn more about mutual funds, or visit our website. Alternatively, you can download the Prodigy Pro app to start investing today!
Can I invest in more than one government scheme?
Encourage your investors to mix up portfolios- smart ones combine PPF for the long-term, SCSS for retirement, and SGBS for gold exposure.
Which government scheme is best among all to save tax?
Besides these numerous tax-saving government schemes, such as the PPF, NSC and NPS, one can avail of the deduction under Section 80C.
Are there special schemes for women by the Government of India?
Women investors can make full use of schemes like PPF, SGBS and Post Office schemes, despite there being no dedicated schemes that specifically cater to the needs of women in this context, except for the Sukanya Samriddhi Yojana, which is for girl children.
If I want a scheme that would give me an annuity income monthly, which one should I choose?
If you require a regular and assured monthly payout, go for the Post Office Monthly Income Scheme or the Senior Citizens Savings Scheme.
Disclaimer – This article is for educational purposes only and does not intend to substitute expert guidance. Mutual fund investments are subject to market risks. Please read the scheme-related document carefully before investing.
Assistant Vice President – Research & Analysis
Akash Gupta heads the Research & Analysis department at BFC CAPITAL, where he combines in-depth market insights with strategic analysis. He holds multiple certifications, including:
- NISM-Series-XIII: Common Derivatives Certification
- NISM-Series-VIII: Equity Derivatives Certification
- NISM-Series-XXI-A: Portfolio Management Services Certification
- IRDAI Certification
With his expertise in equity, derivatives, and portfolio management, Akash plays a key role in providing research-backed strategies and actionable insights to help clients navigate the investment landscape.
