Top 15 Safe Investments with High Returns in India in 2024-25

Safe investments with high returns are very important for financial planning in India. Investment options like PPF, ULIP, and NPS provide financial security and the benefit of high long-term investment growth, and some of them offer tax-saving opportunities. In this article, you will learn about the best options that offer safe investment growth with high gains.

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What are the Safe Investment Options with High Returns in India?

India offers a variety of safe investment options for those who want to grow their wealth while keeping risks low. Popular choices include government-backed schemes like the Public Provident Fund (PPF), National Pension Scheme (NPS), and Senior Citizen Savings Schemes (SCSS), as well as low-risk Debt Mutual Funds and Unit Linked Insurance Plans (ULIPs). These options are perfect for conservative investors who prefer stability and a secure financial future.

List of Top 15 Safe Investments in India with High Returns

Investment	Risk	Suitable for	Returns	Tax Benefits
Capital Guarantee Plan	Low	All	8 – 12%	Section 80C
Unit Linked Insurance Plan (ULIP)	Medium	All	9 – 15%	Section 80C and 10(10D)
Life Insurance	Medium	All	Sum Assured + Bonuses	Section 80C and 10(10D)
Public Provident Fund (PPF)	Nil	Risk-averse investors	7.1%	Section 80C; Tax-free interest
Bank Fixed Deposit (FD)	Nil	Risk-averse investors	5 – 9%	Section 80C for Tax-Saving FD
National Pension Scheme (NPS)	Medium	All	9 – 15%	Section 80C and 80CCD(1B)
Post Office Savings Schemes	Low	Risk-averse investors	4 – 8.20% p.a.	Tax benefits on some schemes under Section 80C
Recurring Deposits (RD)	Low	All	5 – 7% p.a.	N.A.
National Savings Certificate (NSC)	Low	Risk-averse investors	7.7% p.a.	Section 80C
Post Office Monthly Income Schemes (POMIS)	Low	All	7.4% p.a.	Taxable interest
Senior Citizen Savings Scheme (SCSS)	Low	All	8.2% p.a.	Section 80C
Atal Pension Yojana (APY)	Low	All	Up to ₹5,000 per month pension	Section 80C
Debt Mutual Funds	Low-Medium	All	6 – 8% p.a.	Taxed based on holding period (STCG/LTCG)
Gold	Low	Risk-averse investors	Market-dependent	Tax benefits on Sovereign Gold Bonds (SGBs)
RBI Bonds	Low	Risk-averse investors	7.35% p.a.	Taxable interest

Let us learn about the best investment plans offering high returns and safe investment growth in India:

Capital Guarantee Plan

A capital guarantee plan is an investment plan that guarantees to return your capital, making it one of the safest ways to invest money in India.
- Your initial investment is fully protected.
- Offers competitive returns compared to traditional savings.
- Designed for consistent performance with minimal risk.
- Adapts to various financial goals and time horizons.
- Ideal for risk-averse investors seeking steady gains.
Unit Linked Insurance Plans (ULIPs)

ULIP plans are safe investments with high returns in India as they combine the dual benefits of life insurance coverage with investments in units linked to the market.
- Premiums are split between life cover and investment funds.
- Offers a range of investment options such as equity, debt, or balanced funds.
- Flexible premium payments and investment choices.
- Provides potential for high returns based on market performance.
- Premiums qualify for tax deduction under Section 80C (up to ₹1.5 lakh) and other tax benefits under Section 10(10D).
Public Provident Fund (PPF)

A Public Provident Fund (PPF) is a government-backed savings scheme that is the safest investment in India, offering guaranteed returns and tax benefits.
- Long-term, government-backed savings scheme.
- Offers attractive interest rates and tax benefits.
- Contributions qualify for tax deductions under Section 80C.
- Interest earned and maturity amount are tax-free.
- Fixed tenure of 15 years, with partial withdrawals allowed after 6 years.
Life Insurance:

Life insurance is one of the safest ways to invest money, designed to provide financial protection to you and your family in the event of the insured's death.
- Provides financial protection to beneficiaries in case of the policyholder's death.
- It offers various types of life insurance plans, including term, whole-life, and endowment plans.
- Premiums can be paid regularly or in a lump sum.
- Some plans include savings or investment components with potential returns.
- Tax benefits are available on premiums paid and benefits received under Section 80C.
Bank Fixed Deposit (FD):

A Bank Fixed Deposit (FD) is the best safe investment in India. It offers security and reliability while providing fixed FD interest rates over a specified period.
- Safe investment with guaranteed returns.
- Fixed interest rate for the deposit's tenure.
- Interest earned is taxable according to the investor's tax bracket.
- Provides options for varying tenures and interest payout frequencies.
- Premature withdrawals may incur penalties.
National Pension Scheme (NPS):

The National Pension Scheme (NPS) is a government retirement savings scheme in India that offers safe investments with high returns.
- Government-supported retirement savings plan.
- Offers diverse investment options, including equity and bonds.
- Contributions qualify for tax benefits under Sections 80C and Section 80CCD.
- Partial withdrawals are permitted for specific needs like education or home purchase.
- Requires annuity purchase at retirement, ensuring a steady income stream.
Post Office Savings Schemes:

Post Office Savings Schemes are savings schemes offered by the post office that offer secure investments with attractive returns.
- Government-backed schemes with guaranteed returns offer high financial security.
- Offers attractive interest rates, often higher than regular bank savings accounts.
- Provides tax benefits under Section 80C for certain schemes.
- Suitable for conservative investors seeking safety and stable returns.
- The current interest rates for some of the most popular schemes are as follows:
  - Post Office Savings Account: 4.00% p.a.
  - Post Office Time Deposit Account: 6.90% to 7.50% p.a.
  - Post Office Recurring Deposit Account: 6.70% p.a.
  - Sukanya Samriddhi Yojana (SSY): 8.20% p.a.
  - Senior Citizen Savings Scheme (SCSS): 8.20% p.a.
  - Mahila Samman Savings Certificate: 7.50% p.a.
  - Kisan Vikas Patra (KVP): 7.50% p.a.
Recurring Deposit (RD):

A Recurring Deposit (RD) is a safe investment option in India that allows you to regularly deposit a fixed amount of money into your account over a predetermined period and fixed RD interest rates.
- Regular savings plan with guaranteed returns.
- Fixed interest rate throughout the deposit period.
- Ideal for building savings through small monthly contributions.
- Flexible tenure options range from 6 months to 10 years.
- Interest earned is taxable based on your income bracket.
National Savings Certificate (NSC):

A National Savings Certificate (NSC) is a government-backed savings instrument in India that offers a secure investment option with guaranteed returns.
- Government-backed savings bond with guaranteed returns.
- Offers fixed interest rates, typically higher than savings accounts.
- Eligible for tax deductions under Section 80C.
- Interest earned is reinvested annually, boosting overall returns.
- A maturity period of 5 years, making it a medium-term investment option.
Post Office Monthly Income Scheme (POMIS):

The Post Office Monthly Income Scheme (POMIS) offers you a regular monthly income and is considered a reliable option for safe investments with high returns in India.
- A government-backed scheme offering a fixed monthly income.
- Ideal for retirees or those seeking regular, stable returns.
- Safe investment with guaranteed returns.
- 5-year lock-in period with premature withdrawal options subject to penalties.
- Interest earned is taxable according to your income bracket.
Senior Citizen Savings Scheme (SCSS):

The Senior Citizen Savings Scheme (SCSS) is one of the safest ways for senior citizens in India to invest money.
- Government-backed savings scheme specifically for seniors.
- Offers attractive, fixed interest rates, typically higher than regular savings accounts.
- Eligible for tax deductions under Section 80C.
- Safe investment with quarterly interest payouts.
- 5-year tenure, extendable by 3 years, with a penalty for premature withdrawal.
Atal Pension Yojana (APY)

Atal Pension Yojana (APY) is a government-backed pension scheme in India. It offers a safe investment avenue for individuals seeking a secure retirement future.

Key Features:
- Government-initiated pension scheme for unorganized sector workers.
- Provides a fixed monthly pension after retirement based on contributions.
- Low-cost, with contributions determined by the desired pension amount.
- Offers guaranteed pension ranging from ₹1,000 to ₹5,000 per month.
- Eligible for individuals aged 18 to 40, with a mandatory contribution until age 60.
Debt Mutual Funds

Debt mutual funds are considered relatively safe investments compared to equities because they primarily invest in fixed-income securities like bonds.
- Invest primarily in fixed-income securities like bonds and treasury bills.
- Offer relatively lower risk compared to equity funds.
- Suitable for conservative investors seeking stable returns.
- Provide better liquidity than traditional fixed-income instruments.
- Tax-efficient for long-term investors, with indexation benefits on gains.
Sovereign Gold Bonds (SGBs)

Sovereign Gold Bonds (SGBs) are government-backed securities that provide regular interest payments and allow you to benefit from gold price appreciation.
- Government-issued bonds backed by gold providing a secure investment.
- Offers interest payments twice a year, in addition to the potential appreciation in gold value.
- Capital gains tax benefits if held until maturity.
- Allows for easy conversion into physical gold at maturity.
- Safe investment with no storage costs or risk of theft.
RBI Bonds

RBI Bonds are government securities issued by the Reserve Bank of India. They offer fixed interest rates and are considered safe investments due to their government backing.
- Government-backed bonds issued by the Reserve Bank of India.
- Offers fixed interest rates, typically higher than savings accounts.
- Provides regular interest payments, usually semi-annual.
- Low-risk investment with capital protection.
- Tax benefits may be available, depending on the specific bond scheme.

How to Choose the Best Safe Investment Options with High Returns in India?

You should consider the following key points while choosing the right investment options that provide financial safety as well as high investment growth:

Define Your Financial Goals: Clearly outline your financial goals to choose investments that align with your long-term objectives.
Understand Your Risk Tolerance: Before you select any investment, it is important to know how much risk you are willing to take. This helps you choose options that align with your comfort level.
Evaluate Investment Types: Look into safe investment choices like Capital Guarantee Solutions, Guaranteed Return Plans, Fixed Deposits, RBI Bonds, and Debt Mutual Funds. These options generally offer stability and moderate returns.
Opt for Systematic Investment Plans (SIPs): Consider SIPs for disciplined investing. They allow you to invest a fixed amount regularly, which helps in averaging out market costs and mitigating risk.
Long-term Investment Approach: Focus on long-term investments to benefit from compounding and avoid the pitfalls of short-term market fluctuations.
Check Historical Performance: Look at how an investment has performed in the past. This can give you an idea of what to expect regarding returns.
Consider Tax Benefits: Some investments come with tax advantages. For example, investments in ULIP, Tax-saver FDs and NPS can help reduce your taxable income while potentially growing your wealth.
Diversify Your Portfolio: Spreading your investments across different asset classes can help lower risk and increase your chances of stable returns.
Review Fees and Charges: Different investments come with varying fees and charges. It is a good idea to compare these costs to ensure you are not paying more than necessary.
Consider Liquidity Needs: Think about how quickly you might need to access your money. Some investments are more liquid than others, which affects how soon you can use your funds.
Inflation Factor: Factor in inflation when choosing investments to ensure your returns can keep pace with rising costs and maintain purchasing power.
Reputation and Stability of Institutions: Research the reputation and financial stability of the institutions offering the investments. Trustworthy and stable institutions are less likely to face issues that could impact your returns.
Review and Rebalance: Regularly review and adjust your investment portfolio to ensure it continues to meet your goals and risk tolerance.

Wrapping it Up!

In this time of uncertainty, everyone wants to create a secure financial future. However, to do so, it is very important to have a proper understanding of your financial goals, risk appetite, investment tenure, and liquidity needs. By considering these safe investments with high-return options in India, you can create a strong financial cushion in the long term.

Frequently Asked Questions

How can one choose the right investment option among safe investments with high returns in India?

Choosing the right investment option depends on factors such as financial goals, risk tolerance, investment horizon, and liquidity requirements. Thorough research can help you make informed investment decisions tailored to individual needs and circumstances.
How does inflation impact the real returns of safe investments in India?

Inflation degrades the purchasing power of money over time. While safe investments may offer stable returns, failing to beat inflation could result in lower real returns. Therefore, it is essential for you to consider the inflation-adjusted returns of your investments to ensure that you maintain or increase your purchasing power over the investment horizon.
What is a Public Provident Fund (PPF), and why is it considered a safe investment?

PPF is a long-term investment option offered by the Indian government. It provides attractive interest rates and tax benefits and is considered safe due to its sovereign backing and guaranteed returns.
How can I choose the right investment options for me?

Your investment choices should be based on your individual risk tolerance, investment goals, and time horizon. You should also consider your age, income, and expenses.
How can I minimize my investment risk?

Diversification is one of the most important ways to minimize investment risk. By investing in various asset classes, you can reduce your exposure to any particular asset class. You can also minimize risk by investing for the long term, as this will help smooth out the market's ups and downs.
Which investment schemes in India provide tax-free returns?

Tax-free investment options in India include the Unit-Linked Insurance Plan (ULIP), the Public Provident Fund (PPF), the Sukanya Samriddhi Yojana (SSY), the Employee Provident Fund (EPF), the Senior Citizen Savings Scheme (SCSS), the National Savings Certificate (NSC), Tax saver FDs, the National Pension Scheme (NPS), Life insurance, and more.
What are the best safe investments with high returns to invest in India?
There are many investment options available in India. If you want to make a safe investment with the benefit of guaranteed return, you should consider investing in these options.
- Capital Guarantee Plan
- Bank Fixed Deposits
- Public Provident Fund
- ULIP
- NPS
- Recurring Deposits
What are the benefits of making a safe investment?

Choosing safe investment options not only helps you to secure your fund, but it also provides an opportunity to create a financial cushion in the long term and gain a regular return on investment. Moreover, some of these investment options also provide the advantage of saving on taxes.
Which investment option is better than FD?

Capital Guarantee Solution Plan is a better investment option as compared to Bank FDs as it not only provides the benefit of market return but it guarantees 100% return as on maturity of the policy, the entire premium amount is paid back to the insured along with additional benefits added to the policy.
Which investment gives a high return?

Unit Linked Insurance Plans (ULIP) and mutual funds provide higher investment returns.
What are the safest tax-saving investment options available in India?
Some of the safest tax-saving investment options to invest in India are:
- Capital Guarantee Solution
- National Savings Certificate (NSC)
- Public Provident Fund (PPF)
- Sukanya Samriddhi Yojana (SSY)
- Life Insurance Plan

Past 5 Year annualised returns as on 01-10-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.