Safe Investments With High Returns In India

Reading Time: 3 minutes

There are lots of investment options available in India that give good returns. That’s why anyone would not be sure of where to invest their hard earned money. Before choosing the investment option first think about need and risk bearing ability. Every investment depends on the individual’s goals and requirements.We mostly prefer to invest in government supported investments as we considered these are Safe investments with high returns in India.

Safe investments with high returns in India

1.Fixed Deposit (FD) / Term Deposit in Bank

Fixed Deposits in banks are considered the safest investment options in our country because we never heard about any instances of a bank defaulting on Payment of Fixed Deposit. In the last few years Bank FDs have also had very low interest rates. You may think about Investments in 5-year tax-saving FDs which are covered under Section 80C of the Income Tax Act, 1961, and you can deduct up to Rs 1,50,000 a year from your taxable income by investing in this and minimize your tax liability.

Fixed Deposits have a slightly higher rate of interest for senior citizens that is 0.5%. The rate of interest varies across the investment tenure, amount and bank also. FDs come with a specific term period. If you wish to withdraw money within that term period, then the bank would deduct penalties in the form of deducting interest accrued on the investment. You can open a special type of savings account in which if the balance in your saving bank account increases above a certain amount then that amount automatically gets FD interest rate.

2.Public Provident Fund (PPF)

PPF is a government monitored and supported investment scheme. Public Provident Fund investment has a term of 15 years. PPF is considered as one of the safest investments because sovereign guarantees back the scheme. PPFs offer a much higher rate of interest than a normal savings bank account.

3.National Pension Scheme (NPS)

NPS is another government-supported retirement scheme. This fund is managed by the Pension Fund Regulatory and Development Authority (PFRDA). NPS is a combination of various investments such as Mutual funds, fixed deposits, and corporate bonds. There are different schemes under NPS, you can choose a plan as per your requirement. The rate of interest is also different across the funds.

Safe investments with high returns in India


Investing in gold is a traditional investment in India. We are very much fond of this metal. Gold investments are not only made in the form of purchasing gold jewelry but also in coins, and bars. Apart from possessing physical gold, nowadays investments in gold can be made by investing in sovereign gold bonds and obviously it’s backed by the government. This is most likely Safe investments with high returns in India.

5. Equity-Linked Savings Scheme

ELSS is one of the less popular but very good investment schemes and it is the only equity-linked and mutual fund scheme that is covered under Section 80C of the Income Tax Act, 1961. ELSS has the lowest lock-in period (3 years) among all Section 80C investments. Also, ELSS offers the highest rate of returns among Section 80C options, and hence, it is one of the most popular investment options in India currently. It provides the double benefit of tax deductions and wealth growth. Investing in ELSS has moderate risk, always take advice from your personal finance adviser before investing in this.

6. Recurring Deposit (RD)

Recurring deposit is an alternative to FDs and it helps us to maintain a good habit of saving money. Under RDs, individuals invest a fixed sum regularly. RDs also too offer a much higher rate of interest than a regular savings bank account. You can furnish your RD investment as a collateral to avail secured loans just like FDs.

Apart from the above investment options covered in this article, the other popular Safe investments with high returns in India are the National Savings Certificate (NSC), Sukanya Samriddhi Scheme, stock markets, Mutual Funds etc.

If you taken a home loan, then interest paid on home loan is deductible from taxable income under 80c and if you still not applied for home loan the click here How to get Home Loan in 6 easy steps.