10 Best Monthly Saving Schemes in India 2024
Are you looking for a secure and reliable way to save money every month while growing your wealth at the same time? The good news is that there are numerous monthly saving schemes designed to help you achieve your financial goals. Whether you are saving for short-term needs or planning for a comfortable future, a structured saving plan can make a big difference.
Saving regularly not only helps in accumulating wealth, but it also ensures that your money works for you. The 10 best monthly saving schemes in India 2024 available today offer various interest rates, maturity benefits, and tax-saving options that can suit anyone from a novice saver to an experienced investor.
In this article, we will explore the 10 best monthly saving schemes in India 2024 you should consider for 2024, explaining each one in-depth with data, studies, and unique features. We’ll dive into the pros and cons, compare returns, and help you find the best options based on your financial goals. So, grab a cup of coffee and let’s explore the best ways to grow your savings!
Best Monthly Saving Schemes in India 2024
| Scheme Name | Interest Rate (p.a.) | Tax Benefit | Maturity Period | Minimum Investment |
|---|---|---|---|---|
| 1. Public Provident Fund (PPF) | 7.1% | Tax-exempt | 15 years | ₹500 |
| 2. Senior Citizens Savings Scheme (SCSS) | 8.0% | Tax-exempt on interest | 5 years | ₹1,000 |
| 3. Post Office Monthly Income Scheme (POMIS) | 7.4% | No tax benefit | 5 years | ₹1,500 |
| 4. National Savings Certificate (NSC) | 7.7% | Tax deduction under 80C | 5 years | ₹1,000 |
| 5. Fixed Deposits (FDs) | 6.5%–8.0% | Tax on interest earned | Varies (1-10 years) | ₹1,000 |
| 6. Sukanya Samriddhi Yojana | 7.6% | Tax benefits under 80C | 21 years | ₹250 |
| 7. Mutual Fund SIPs | 10%–12% | No tax benefit | Varies | ₹500 |
| 8. Kisan Vikas Patra (KVP) | 7.0% | No tax benefit | 8 years & 4 months | ₹1,000 |
| 9. Atal Pension Yojana (APY) | 8.0% | Tax-free pension | Till retirement | ₹1,000 |
| 10. Employee Provident Fund (EPF) | 8.1% | Tax-exempt on interest | Till retirement | ₹500 |
10 Best Monthly Saving Schemes in India 2024
1. Public Provident Fund (PPF): A Long-Term Safe Investment
The Public Provident Fund (PPF) is one of the most trusted saving schemes in India. It is popular for its long-term benefits, tax exemptions, and attractive interest rates. It is a government-backed initiative, which means it carries no risk. PPF is perfect for individuals who are looking for a secure investment for their retirement or long-term financial goals.
Key Features:
- Interest Rate: 7.1% compounded annually.
- Tax Benefits: Tax benefits under Section 80C, and the maturity amount is tax-free.
- Maturity Period: 15 years, extendable in blocks of 5 years.
- Contribution Amount: Minimum ₹500 and a maximum ₹1.5 lakh per year.
- Withdrawal Facility: Partial withdrawals are allowed from the 6th year.
- Loan Facility: Loans against PPF are available from the 3rd year of investment.
Why Choose PPF?
PPF is the ideal choice for conservative investors who want to save for long-term goals like children’s education or retirement. With guaranteed returns and no market risk, PPF remains one of the safest investment options in India.
2. Senior Citizens Savings Scheme (SCSS): Tailored for Retirees
The Senior Citizens Savings Scheme (SCSS) offers attractive interest rates and tax-free returns for senior citizens. This scheme is specifically designed for individuals above 60 years of age, providing them with a monthly income option to meet their living expenses post-retirement.
Key Features:
- Interest Rate: 8% per annum, paid quarterly.
- Tax Benefits: Tax deduction under Section 80C.
- Maturity Period: 5 years, with an option to extend for an additional 3 years.
- Investment Amount: Minimum ₹1,000 and a maximum ₹15 lakh.
- Monthly Payout: The scheme pays interest quarterly, offering a consistent income for seniors.
Why Choose SCSS?
SCSS is perfect for retired individuals looking for stable and regular monthly income. It offers higher returns compared to traditional savings accounts, along with tax-saving benefits, making it a secure option for retirees.
3. Post Office Monthly Income Scheme (POMIS): Regular Monthly Income
The Post Office Monthly Income Scheme (POMIS) is another excellent option for conservative investors seeking a low-risk, government-backed investment that provides guaranteed monthly income. It is a simple, hassle-free scheme that allows you to invest in a post office and receive regular income.
Key Features:
- Interest Rate: 7.4% per annum, paid monthly.
- Tax Benefits: No tax exemptions on the interest earned.
- Maturity Period: 5 years.
- Investment Amount: Minimum ₹1,500 and a maximum ₹4.5 lakh for individuals, ₹9 lakh for joint accounts.
Why Choose POMIS?
This scheme is ideal for people looking for a safe investment option with regular monthly returns. It is especially popular among retirees who need a steady income stream.
4. National Savings Certificate (NSC): Build Wealth with Tax Benefits
The National Savings Certificate (NSC) is another government-backed scheme offering higher interest rates than traditional savings accounts. It is a great investment option for tax-saving purposes under Section 80C, while also delivering assured returns.
Key Features:
- Interest Rate: 7.7% per annum, compounded annually.
- Tax Benefits: Deduction under Section 80C for up to ₹1.5 lakh.
- Maturity Period: 5 years.
- Investment Amount: Minimum ₹1,000 with no upper limit.
- Tax-Free Returns: Interest earned on NSC is taxable but can be claimed under Section 80C.
Why Choose NSC?
NSC is an ideal option for those looking to save on taxes and earn regular returns over a 5-year period. It is a fixed-income instrument that is also easy to manage.
5. Fixed Deposits (FDs): The Traditional Safe Investment
Fixed Deposits (FDs) are one of the oldest and safest investment options in India. FDs are offered by banks and financial institutions, providing guaranteed returns at fixed interest rates. It is perfect for people who want low-risk investments and are happy with a fixed monthly income.
Key Features:
- Interest Rate: 6.5% to 8%, depending on the tenure and institution.
- Tax Benefits: Tax benefits can be claimed under Section 80C for certain FD types.
- Maturity Period: From 1 to 10 years, offering flexibility.
- Investment Amount: Minimum ₹1,000.
Why Choose FDs?
FDs are perfect for conservative investors who value safety and consistency. While the returns may not be as high as some other schemes, the security and guarantee they provide make them a top choice for risk-averse investors.
6. Sukanya Samriddhi Yojana (SSY): Secure Your Daughter’s Future
The Sukanya Samriddhi Yojana (SSY) is a government-backed scheme aimed at encouraging savings for the education and marriage expenses of a girl child. With a higher interest rate compared to regular savings schemes, SSY provides tax-free returns.
Key Features:
- Interest Rate: 7.6% per annum, compounded annually.
- Tax Benefits: Exempt under Section 80C and tax-free interest.
- Maturity Period: The account matures when the girl turns 21 years of age.
- Investment Amount: Minimum ₹250 annually.
Why Choose SSY?
SSY is ideal for parents who want to ensure a secure future for their daughters. It offers attractive returns, tax-free interest, and government backing.
7. Mutual Fund SIPs: Grow Wealth with Professional Management
Mutual Fund SIPs (Systematic Investment Plans) allow individuals to invest a fixed amount every month in a mutual fund scheme. This option is excellent for people who want to invest in the stock market but need professional management and a disciplined approach.
Key Features:
- Interest Rate: 10% to 12% per annum (variable based on the fund).
- Tax Benefits: No tax benefits on investments.
- Maturity Period: Flexible, depends on the mutual fund scheme.
- Investment Amount: Minimum ₹500 per month.
Why Choose SIPs?
SIPs allow investors to participate in the equity market with lower risks, thanks to dollar-cost averaging. The returns tend to be higher over time, making SIPs a great long-term investment strategy.
8. Kisan Vikas Patra (KVP): Grow Your Investment Safely
The Kisan Vikas Patra (KVP) is a government-backed savings scheme that provides a guaranteed return over a specific period. KVP is ideal for those looking to invest their money in a safe, long-term scheme that provides periodic returns.
Key Features:
- Interest Rate: 7.0% per annum, compounded annually.
- Tax Benefits: No tax benefits on the investment or returns.
- Maturity Period: 8 years and 4 months.
- Investment Amount: Minimum ₹1,000.
Why Choose KVP?
KVP is a low-risk, long-term investment option that offers fixed returns. It is a good choice for individuals who want to lock in their funds for a longer period and are not looking for regular payouts.
9. Atal Pension Yojana (APY): Secure Your Retirement
The Atal Pension Yojana (APY) is aimed at providing a pension to individuals in the unorganized sector. The scheme guarantees a minimum monthly pension after retirement, offering a secure financial future for individuals with low income.
Key Features:
- Interest Rate: 8.0% (subject to change).
- Tax Benefits: No direct tax benefit but deductions are available under Section 80CCD(1).
- Maturity Period: Until retirement (based on the contribution period).
- Contribution Amount: Based on the monthly pension amount selected.
Why Choose APY?
APY is ideal for individuals who do not have access to formal pension schemes and need a government-backed pension plan for a stable future.
10. Employee Provident Fund (EPF): Save for Your Retirement
The Employee Provident Fund (EPF) is a mandatory savings scheme for salaried employees in India. Contributions are made by both the employee and the employer, ensuring a substantial corpus for retirement.
Key Features:
- Interest Rate: 8.1% per annum.
- Tax Benefits: Tax exemption under Section 80C and on the interest earned.
- Maturity Period: Till retirement.
- Contribution Amount: 12% of basic salary (both employee and employer).
Why Choose EPF?
EPF is a great option for salaried individuals looking for a reliable way to save for retirement. The employer’s contribution and tax exemptions make it an attractive choice for long-term saving.
11. Tax-Free Bonds: Earn Returns with Tax Exemption
Tax-Free Bonds are a great option for conservative investors who seek guaranteed returns along with tax-free income. These bonds are issued by government-backed entities like Indian Railways, Power Finance Corporation (PFC), and Indian Renewable Energy Development Agency (IREDA). The best part is that the interest earned on these bonds is completely tax-exempt, making them an attractive choice for investors looking for a regular income without the worry of paying taxes.
Key Features:
- Interest Rate: Typically ranges between 6% to 7% per annum, but can vary based on the issuing entity.
- Tax Benefits: The interest earned is tax-free under Section 10(15) of the Income Tax Act.
- Maturity Period: 10 years or more.
- Investment Amount: Minimum ₹10,000 (usually in multiples of ₹1,000).
- Liquidity: These bonds can be sold in the secondary market, but there may be fluctuations in prices.
Why Choose Tax-Free Bonds?
Tax-free bonds are ideal for those in higher tax brackets who want to earn regular income with the added benefit of tax-free returns. They are particularly attractive for retirees or investors looking for long-term investment opportunities with a steady income stream. Additionally, the security of government backing makes them low-risk.
Frequently Asked Questions (FAQs)
Q1: What are the best monthly saving schemes for 2024?
A1: The top monthly saving schemes for 2024 include Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), National Savings Certificate (NSC), and Mutual Fund SIPs. Each offers different benefits based on your goals and risk appetite.
Q2: Are the returns from these schemes guaranteed?
A2: Most of these schemes, such as PPF, SCSS, POMIS, and KVP, offer guaranteed returns. However, schemes like Mutual Fund SIPs carry a variable return based on market performance.
Q3: Can I invest in these monthly saving schemes online?
A3: Yes, several schemes like PPF, Sukanya Samriddhi Yojana, and Mutual Fund SIPs can be invested in online through government websites, banking platforms, or mutual fund distributors.
Q4: How can I withdraw from the Public Provident Fund (PPF)?
A4: You can make partial withdrawals from the PPF starting from the 6th year of investment. The entire amount can be withdrawn after the completion of the 15-year maturity period.
Q5: Is the interest earned from these saving schemes taxable?
A5: Interest earned from schemes like PPF and Sukanya Samriddhi Yojana is tax-free. However, interest from Fixed Deposits, POMIS, and SCSS is taxable. Tax deductions can be claimed for contributions to schemes like PPF and NSC under Section 80C.
Q6: Can I change my monthly contribution in a scheme like SIP?
A6: Yes, in a Mutual Fund SIP, you can change your contribution amount anytime as per your financial goals and market conditions. Most schemes offer this flexibility.
Q7: What is the minimum investment amount for each scheme?
A7: The minimum investment amount varies depending on the scheme:
- PPF: ₹500
- SCSS: ₹1,000
- POMIS: ₹1,500
- NSC: ₹1,000
- Fixed Deposits: ₹1,000
- Sukanya Samriddhi Yojana: ₹250
- Mutual Fund SIPs: ₹500
- KVP: ₹1,000
- APY: ₹1,000
- EPF: 12% of basic salary (employee contribution)
Q8: Can I extend the Senior Citizens Savings Scheme (SCSS) after the maturity period?
A8: Yes, you can extend the SCSS for an additional 3 years after the initial 5-year maturity period. The interest rate remains the same during the extended period.
Q9: Is the Post Office Monthly Income Scheme (POMIS) a good investment for senior citizens?
A9: Yes, POMIS is an excellent option for senior citizens as it offers regular monthly payouts, making it ideal for retirees who need steady income.
Q10: How can I invest in the Sukanya Samriddhi Yojana (SSY)?
A10: You can open a Sukanya Samriddhi Yojana (SSY) account at any post office or designated banks. You can invest a minimum of ₹250 annually, and the account will mature when the girl child reaches 21 years of age.
Conclusion: Make Your Money Work for You
The 10 Best Monthly Saving Schemes provide a range of options tailored to different investment needs, whether you’re looking for tax benefits, stable returns, or long-term growth. By diversifying your investments across these schemes, you can achieve a balanced portfolio that works for both your short-term and long-term financial goals.
Whether you’re saving for retirement, your child’s education, or building a safety net, these schemes ensure that your savings are protected, grow consistently, and provide you with the flexibility to meet your financial needs. Make sure to assess your financial goals, risk tolerance, and time horizon before investing in any of these schemes