Most Popular 10 Savings Plans

Saving money wisely is the first step toward building long-term financial security. With so many options available in India, choosing the right savings plan can feel overwhelming. Each option—whether market-linked or guaranteed—comes with its own returns, risk levels, tax benefits, and suitability for different goals.

To help you make smarter decisions, we’ve listed the 10 most popular savings plans in India for 2025, along with their features, interest rate ranges, eligibility, and tax benefits. These options can help you plan for life goals such as children’s education, retirement, wealth building, or emergencies.

Most popular 10 savings plans in India for 2025

Here are 10 widely chosen savings options across risk profiles, offering flexible solutions for short- and long-term financial needs:

• Public Provident Fund (PPF):

A government-backed scheme offering stable, tax-free returns over a 15-year tenure. Ideal for long-term wealth creation.

• National Savings Certificate (NSC):

A 5-year small-savings scheme offering fixed returns. Suitable for low-risk savers looking for tax-deductible options.

• Sukanya Samriddhi Yojana (SSY):

A long-term government plan exclusively for a girl child, with attractive interest and EEE tax benefits.

• Senior Citizens Savings Scheme (SCSS):

Designed for individuals above 60, offering high fixed returns with quarterly payouts.

• Fixed Deposits (FDs):

Offered by banks and NBFCs; provide guaranteed returns with flexible tenures and risk-free capital protection.

• Recurring Deposits (RDs):

Help build savings gradually through monthly deposits with assured interest.

• Unit Linked Insurance Plans (ULIPs):

ULIPs are life-insurance-linked investment plans combining market-linked returns with financial protection.

• Endowment plans:

Endowment plans offer guaranteed maturity benefits and life cover—ideal for disciplined savers.

• National Pension System (NPS):

A market-linked retirement plan allowing voluntary contributions with attractive tax benefits.

• Savings-linked life insurance plans:

Savings plans are low-risk, long-term insurance products offering guaranteed returns along with life insurance protection.

These plans cater to varied goals: family security, retirement, education, or wealth building.

Explore life insurance with savings plan options available in affordable premiums. Get quote!

These savings plans differ in structure, but here are major features that make them attractive options:

• Guaranteed or market-linked returns:

Plans like FDs and endowment policies provide guaranteed payouts, while ULIPs and NPS offer market-linked growth, suitable for long-term wealth creation.

• Flexible investment tenure:

Options range from 5 years (NSC) to 15 years (PPF) or beyond (NPS), allowing you to match your investment horizon with financial goals.

• Life cover protection:

Some popular savings options—like ULIPs and endowment plans—provide life insurance along with returns, helping secure your family’s future.

• Capital safety:

Government-backed instruments (PPF, SSY, SCSS) offer low risk, while market-linked options come with some volatility.

• Liquidity options:

Many plans allow partial withdrawals after a lock-in period, helping you handle emergencies without liquidating the entire corpus.

• Affordable contribution options:

From low monthly deposits in RDs to flexible premiums in ULIPs, these plans accommodate various income levels.

Together, these features make savings plans versatile tools for meeting different milestones—from children’s education to retirement—with financial confidence.

Interest rates vary depending on the type of plan. Government-backed schemes like PPF, NSC, SSY, and SCSS usually offer interest in the range of 7%–8.5%, reviewed quarterly.
 

Bank FDs generally provide returns between 6%–8.5%, depending on tenure and bank. RDs offer similar rates.

Market-linked instruments such as ULIPs and NPS don’t have fixed returns but historically can deliver 8%–12% over the long term, depending on market performance.

Savings-linked life insurance plans typically provide stable, guaranteed payouts in the 4%–6% annualised range, along with insurance coverage.

Interest rate ranges help you compare options and choose a plan matching your risk appetite and goal timeline.

Eligibility varies based on the savings product, but here are general requirements:

• Age criteria:

Most bank deposits and government schemes are open to Indian residents; age minimums may apply (e.g., SCSS requires age 60+). ULIPs and endowment plans usually accept applicants aged 18–60.

• Nationality / residency:

Must be an Indian resident. Certain schemes may allow NRI participation, though rules vary.

• Minimum contribution:

PPF: Minimum yearly deposit

FD/RD: Minimum deposit varies by bank

ULIP/Insurance plans: Minimum premium defined by insurer

• KYC compliance:

PAN, Aadhaar, and address proof are required for identity and verification.

• Bank account:

Mandatory for contributions and receiving maturity benefits.

Common documents required:

• Aadhaar card
• PAN card
• Address proof (passport, utility bill, etc.)
• Photographs
• Application form
• Additional documents may be needed for insurance-based plans.

Understanding these requirements ensures smoother onboarding and quicker processing.

What are the tax benefits available on savings plans

Many popular savings instruments offer tax benefits under India’s Income Tax Act:

• Section 80C deductions:

Contributions to plans like PPF, NSC, ULIPs, endowment plans, and SSY qualify for deductions up to Rs. 1.5 lakh annually.

• EEE status:

Instruments like PPF, SSY, and certain insurance plans offer tax-exempt investment, interest accumulation, and maturity payout.

• NPS benefits under Section 80CCD(1B):

Additional deduction of Rs. 50,000 over the 80C limit on NPS contributions.

• Tax on FD/RD interest:

Interest earned is taxable as per individual income tax slab; TDS applies.

• ULIPs and insurance plans:

Maturity benefits may be tax-exempt subject to conditions under Section 10(10D).

These benefits help reduce tax liability while building wealth—making savings plans a smart long-term choice.

Explore life insurance with savings plan options available in affordable premiums. Get quote!

Conclusion

Saving is more than just setting money aside—it’s aligning your money with your life goals. The most popular savings plans in India offer a variety of features: low risk, market-linked growth, tax benefits, and even life protection. Whether you are planning for your child’s future, retirement, or wealth creation, choosing the right plan can bring stability to your financial journey. Compare returns, risk, and flexibility to find what fits you best. Explore life insurance with savings plan options available in affordable premiums. Get quote!