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A List of Best Government Investment Schemes with High-returns

Updated On Sep 13, 2023

Are you planning to grow your money? If so, there can be no better thing than investing your money in different financial schemes. There are a number of schemes offered by the government of India to help you get the best returns without much risk involved. So, here is a list of some of the best government-backed investment schemes that offer high returns.

What Exactly Are Government Investment Schemes?

A List of Best Government Investment Schemes with High-returns

Time and again, the government of India comes up with new investment schemes for the financial interest of Indian citizens. These schemes unlike others are less affected by market risks and offer several other benefits. Investment schemes offered by the government can be opened in any nearby bank or post office. However, as there are a number of such options available, you need to analyse your needs and budget before buying one for yourself.

Best Government Investment Schemes in India

Here is a list of some of the best government investment schemes in India that you can consider investing in:

1. National Pension Scheme

The National Pension Scheme or NPS is one of the most popular investment schemes in India. It is regulated by the Pension Fund Regulatory and Development Authority or PFRDA. There are fund managers assigned by PFRDA who take care of the money you are investing. 

  • Individuals who are of the age between 18-60 years are eligible for this scheme.
  • Both Indian residents and NRIs can invest in the National Pension Scheme.
  • There are two types of accounts available with NPS - tier 1 and tier 11 accounts.
  • National Pension Scheme offers tax benefits of up to Rs. 1.5 lakhs.
  • Individuals can enjoy flexibility when they are investing in NPS.
  • You need to complete the KYC process to get your National Pension account opened.

2. Kisan Vikas Patra

Kisan Vikas Patra or KVP is another investment option that offers great returns in a very short period of time. This scheme was introduced in 1988 and was later amended in the year 2014. As it is government-backed, it is completely safe and can be chosen by low-risk investors.

  • It can be opened with a minimum amount of Rs. 1000.
  • On investing in this scheme, your money will be doubled in a period of 10 years and 4 months.
  • To open this account, individuals should be at least 18 years old.
  • The contribution towards KVP is made only once.
  • This can be opened by a trust, individual, and 2 joint individuals.
  • Some of the important documents required to invest in KVP are aadhaar card, PAN card, etc.
  • You cannot do pre-mature withdrawals from this account.
  • The returns generated out of KVP are taxable.

3. Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana or SSY scheme is a government-initiated scheme that is designed especially for girl child. It was introduced as a part of ‘Beti Bacho Beti Padhao’ campaign by the honourable Prime Minister of India in 2015. Through this scheme, you can create a corpus for your girl child.

  • The minimum investment required for opening this account is as low as Rs. 500. 
  • There are tax benefits available with this scheme according to the Income Tax Act of 1961.
  • The current interest rate of Sukanya Samriddhi Yojana is 7.6%.
  • This account can be opened in any nearby post office or bank.
  • Premature withdrawals are available with this scheme.

4. Public Provident Fund

Public Provident Fund or PPF is one of the most popular schemes that is helpful in creating a corpus for retirement. The interest rate available on the Public Provident Fund is set by the government of India.

  • The minimum investment amount for PPF is Rs. 500 and thus can be easily opened by anyone.
  • Any individual who is above the age of 18 years is eligible for opening this account.
  • The existing interest rate of PPF is 7.1%.
  • PPF has a lock-in period of 15 years.
  • For PPF, your aadhaar card needs to be linked to your PPF account.
  • It allows partial withdrawals after 7th year.

5. National Savings Certificate

National Savings Certificate or NSC comes with no age limit and can thus be opened by any interested investor. It offers guaranteed returns and can be opened at any nearby post office.

  • It can be opened with a minimum investment amount of Rs. 1000.
  •  The National Savings Certificate can be opened by any Indian citizen.
  • The minimum amount invested in the National Savings Certificate is Rs. 100, however, there is no maximum limit.
  • The current interest rate for NSC Is 6.8%.
  • There are tax benefits available under section 80C of the Income Tax Act of 1961.

Summing Up

Thus, if you have a low risk-bearing appetite, then you should go for government-backed investment schemes only. In addition to those listed above, there are many other schemes that are offered by the government of India.

Also read: What are the Best Investment Options in India Based on Your Income?


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.