Which Savings Scheme Has the Highest Interest Rate?

August 29, 2022
Get India's most rewarding shopping wallet
Table of Contents

A savings scheme is a type of small investment plan offered by the Government of India, and various banks, to encourage investors to get into the habit of regularly saving their money. Such schemes are typically long-term in nature, and offer competitive interest rates to appeal to investors. 

While embarking on your investment journey, you’re probably wondering whether certain saving schemes can help you grow your funds. The truth is, while there are a variety of factors that can impact how much your investment grows, nothing makes as much of a difference as the interest rate offered by the scheme and the consistency with which you save. With that in mind, let’s take a look at the top 15 savings schemes in India with the highest interest rates! 

Top 14 savings schemes in India with the highest interest rates

The following savings schemes offer the highest interest rates in India:

  1. The Public Provident Fund (PPF): With a 15-year lock-in term, the Public Provident Fund (PPF) is a tax-free savings plan. It is governed by the Indian government, which also determines and pays the interest rate on a quarterly basis. A Rs.500 annual minimum investment is permitted. It has a 7.1% interest rate. The Public Provident Fund (PPF)
  1. National Savings Certificates (NSC): A resident of India may obtain a National Savings Certificate (NSC) at any post office. This government-sponsored investment programme for tax savings has a set return and minimal risk. It has a 6.8% interest rate. National Savings Certificates (NSC)
  1. Savings account at the post office: An ordinary bank savings account and a Post Office Savings Account are comparable. It is a low-risk investment vehicle that may be wholly or partly liquidated as needed. It has a 4% interest rate. Savings account at the post office
  1. Post Office Time Deposit: These programmes have one, two, three, or five-year terms. In a single account, just one deposit is permitted. It guarantees guaranteed returns and is simple to move across post offices. It might be jointly owned or run exclusively. Depending on whether a term of 1, 2, 3, or 5 years is selected, the interest rate ranges from 5.5% to 6.7%. Post Office Time Deposit
  1. Post Office Recurring Deposit: A post office RD is a well-liked savings option to fixed deposits and other lengthy Postal Service programmes. It carries a 5.8% interest rate. Post Office Recurring Deposit
  1. Postal Service Monthly Income Plan (MIS): This monthly plan is governed by Indian Post Offices. You can invest a set amount each month in it, and it is backed by the government. With a minimum investment of Rs.1000, a resident of India may start a POMIS. It carries a 6.6% interest rate. Postal Service Monthly Income Plan (MIS)
  1. Kisan Vikas Patra: Kisan Vikas Patra is a savings programme that was introduced by India Post in 1988. It was a popular product in its early years, but due to frauds that were detected, it had to be shut down in 2011. The programme was re-launched in 2014, when Narendra Modi's NDA government took office. You may increase your money by doubling it under this fixed-rate plan within a certain time frame. The duration is now 124 months. It has a 6.9% interest rate. Kisan Vikas Patra
  1. The Sukanya Samriddhi Yojana: The Sukanya Samriddhi Yojana was introduced as part of Prime Minister Narendra Modi's Beti Bachao Beti Padhao campaign to guarantee the female children of India have a bright future. This programme aids in the right education and carefree marriage of females. It carries a 7.6% interest rate. The Sukanya Samriddhi Yojana
  1. Senior Citizens Savings Scheme (SCSS): An initiative of the Indian government is the Senior Citizen Savings Scheme. The current interest rate is 7.4%, and it is sometimes updated by the Ministry of Finance. One of the safest investment choices is this product that is backed by the government. (SCSS)
  1. National Pension System (NPS): All Indian citizens may receive pensions under the National Pension System (NPS). The subscription fees are put toward a variety of investment vehicles, including debt and stocks. The performance of these investments will determine the eventual pension amount. Its interest rate ranges from 9% to 12%. National Pension Plan (NPS)
  1. The Pradhan Mantri Vaya Vandana Yojana, or PMVVY: For older persons, the Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a guaranteed pension programme. This plan offers a ten-year guaranteed pension after a single deposit. Depending on whether you choose to get your rewards monthly, quarterly, half-yearly, or annually, the Pradhanmantri Vaya Vandana Yojana provides high returns. It has an 8% interest rate. The Pradhan Mantri Vaya Vandana Yojana, or PMVVY
  1. The Pradhan Mantri Jan Dhan Yojana: The Pradhan Mantri Jan Dhan Yojana was initially introduced by Prime Minister Narendra Modi in his Independence Day address on August 15, 2014. To ensure that everyone has access to financial services, PMJDY offers straightforward banking accounts with a debit card and built-in accident insurance. The 5,000 overdraft capacity for Aadhar-linked accounts is the standout feature. It also provides a RuPay debit card with a built-in 1 lakh rupee accident insurance policy. It has a 3% interest rate. The Pradhan Mantri Jan Dhan Yojana
  1. Atal Pension Yojana (APY): The Atal Pension Yojana (APY), which is a government-backed programme, is open to all Indian citizens. The National Pension System (NPSPension )'s Fund Regulatory and Development Authority (PFRDA) oversees APY with a concentration on the unorganised sector. Depending on the subscribers' payments, a guaranteed minimum pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, or Rs. 5,000 per month will be provided under the APY at the age of 60. Atal Pension Yojana (APY)
  1. Chit fund: Chit funds are a sort of revolving savings and arrangement between several people. Friends, neighbours, family members, and other close friends may sign up to invest a certain sum of money for a specific length of time. Chit funds are often microfinance institutions and are also known as chits, chitty, or kuree. It has an interest rate whose value is determined by the winning bid. Chit funds are subject to the annual ceiling rate of interest of 12.5%. Chit fund

Why choose Hubble Money?

While these traditional savings schemes are essential for any investor, it’s important not to forget about new-age digital schemes offered by start-ups like Hubble Money! Hubble Money allows you to  create a dedicated savings plan for any product you want to buy in the future, so that your immediate needs are taken care of. Download the app and start saving today! 

How to create a savings plan on Hubble Money?

To create your plan, you must:

  1. Select the desired partner brand (for instance, Myntra)
  2. Select the applicable savings plan displayed on the home page (for instance, get 10% extra  on savings plan) by clicking the Get Started button.
  3. A new page will open.
  4. Select the Customize option to change your deposit amount along with tenure.
  5. Review the plan to verify the selected details.
  6. Click the Pay button and complete the payment via your desired mode (such as UPI).
  7. Your savings plan will be made! 


  1. When are senior citizen savings scheme interests credited?

This depends entirely on the type of plan chosen by the customer, however, typically, the interest is credited on 31st of March, 30th June, 30th September, and 31st December. 

  1. When should you withdraw money from any savings scheme?

Ideally, you should not withdraw money from savings schemes before the maturity period is over. This gives your funds a chance to grow properly. However, if you require funds for an emergency, you can liquidate these schemes at any time. Some schemes may have an applicable penalty for early withdrawals, and this would be mentioned in the scheme document handed to you. 

  1. Who should open a long-term savings scheme? 

Any investor who wants to save for the future should open a long-term savings scheme. Generally, these schemes have their own age eligibility (the most common age range is 18-65 years, however, this can vary from scheme to scheme). You can even open such schemes for your children. 

  1. What documents are needed to invest in any savings scheme?

You would need to submit:

  • Identity proof: such as Aadhar card, passport, or driver’s license 
  • Age proof: Aadhar card, passport, or driver’s license 
  • PAN Card
  • 2 passport size photographs
  1. What long term savings plan is ideal for my retired parents?

The senior citizen savings scheme is ideal for parents. 

Komal Chawla

Writer-by-chance and overthinker-by-choice, raging a war against the Pineapple-on-pizza brigade

More from investing

financial lessons

7 Financial Lessons That You Should Learn From ‘F.R.I.E.N.D.S’

FRIENDS is not just about hilarious antics of 6 friends who care & love each other beyond limits but also about some very important financial lessons. Read here!

Best Investment Plans in India 2022

The search for the best investment plan is never ending and the answer for each one of us will be […]
What are stocks?

What Are Stocks? Definition, Types, & How To Invest

Stocks are a kind of security that gives stockholders a share of ownership in a company. Read this article to understand the definition, types & how can you invest in Stocks.

Gold vs Mutual Funds - Which One Should You Invest In?

Which investment avenue is better, Gold or Mutual funds? Many of us are confused about it. Let's look the pros & cons of both in this blog and choose the right investment.
How Does A Fixed Deposit Work?

How Does A Fixed Deposit Work? 

Fixed Deposits (FDs) have been the most common and reliable instruments for investment in India. This instrument is regulated by the Government and offers fixed returns.
Fixed Deposit Or Recurring Deposit: Which Is Better?

Fixed Deposit or Recurring Deposit: Which Is Better? 

A Fixed Deposit (FD) and Recurring Deposit (RD) are ideal investment instruments for individuals looking for stable returns. Read this blog to understand which option to choose.

How To Invest In Mutual Funds?

Confused about investing in Mutual funds? Don’t worry! We’re here to help you understand how you can invest, pick the right schemes, and make sure you have a positive investing experience. 
investing, learn

Why You Shouldn’t Mix Saving And Investing

Saving and investing are not the same. Read this article to know how are they different and when you should save your money & when to invest it to get good returns.
investing, learn

Goal Based Savings

Goal based savings help you set targets for yourself and save towards a goal. Learn how to set targets for your long, middle & short term goals and how to achieve those seamlessly.


2gethr @ ORR, 1st FloorTower B,
Mantri Commercio, Outer Ring Rd, Bellandur,
Bengaluru, Karnataka – 560103

© 2022 by Gullak Technologies Pvt. Ltd.