Safe Investments With High Returns in India 2024

safe investments with high returns in india

In the ever-changing scenario of India’s financial markets, finding stability amidst the highs and lows becomes paramount. We will explore in this article a range of safe investments with high returns in India options that strike a balance between safety and returns.

From trusted favourites like Fixed Deposits and government-backed schemes to the potential of blue-chip stocks and diversified mutual funds, we will dissect these options to help you make informed choices for your financial portfolio.

Safe investments with high returns, like fixed deposits, historically provide lower risk but modest returns, offering stability and wealth accumulation. 

12 Safe Investments With High Returns in India

Let’s explore all the options available for safe investments with high returns.

Bank Fixed Deposits (FD)

Fixed Deposits (FDs) in India are reliable for investors seeking consistent returns. The flexibility they offer in terms of tenure, spanning from 7 days to 10 years, and the allowance to align your investment with your goals is a big plus.

Interest rates, usually ranging from 3% to 7.5%, can vary slightly among banks and NBFCs. Senior citizens often enjoy even better rates, making FDs an attractive option for retirement planning.

Banks set a maximum deposit limit, and the investment amount can vary. FDs provide tax benefits, allowing you to deduct the interest income from your taxes, in addition to liquidity.

However, you must ensure the bank has sufficient reserves to meet your deposit when it matures. FDs are ideal for traditional investors seeking stability and reliable returns in a financial environment that is in constant flux. 

Public Provident Fund (PPF)

The Public Provident Fund (PPF) in India is a secure avenue for wealth-building with low-risk exposure, often serving as a cornerstone for retirement planning. PPF offers a fixed 15-year tenure, with a minimum yearly deposit requirement of Rs. 500 to keep the account active.

At a steady interest rate of 7.1%, regulated and announced by the Government, PPF beats inflation and presents tax benefits. Interest earnings remain tax-free, and annual deposits up to Rs. 1.5 lakh are tax-deductible. PPF boasts minimal risk, which makes it a favoured choice for those seeking stability in their investments.

National Savings Certificate (NSC)

The National Savings Certificate (NSC) in India is a straightforward savings scheme facilitated by the extensive network of the Indian Postal Service. It aims to promote regular small to medium savings among the wider population. With a low-risk profile, NSC is an attractive option.

Investors can start with a minimum of Rs. 1000 and increase their holdings in multiples of Rs. 100, that too, without a maximum limit. The scheme has a fixed 5-year lock-in period, and the invested amount qualifies for tax exemption under Section 80C up to Rs. 1.5 lakh annually.

The return rate, currently at 7.7% per annum, is paid out at maturity. NSC can be purchased by any adult Indian citizen and minors above 10, with the flexibility of joint ownership by up to 3 adults. It is ideal for those seeking stability and tax benefits in their investments.

Sukanya Samriddhi Yojana (SSY)

The Sukanya Samriddhi Yojana Scheme (SSY) in India is a secure investment avenue designed to empower young girls and secure their futures, aligning with the ‘Beti Bachao, Beti Padhao’ campaign. This government-backed scheme offers a 21-year tenure, which can extend until a girl’s marriage.

Parents can deposit between Rs. 500 and Rs. 1.5 lakh annually for 15 years, enjoying tax exemptions under Sec 80C for deposits and returns. With a competitive return rate of 7.6% per annum, SSY presents minimal risk and is an excellent choice for parents looking to secure their daughters’ education and future.

Post Office Monthly Income Scheme (POMIS)

Post Office Monthly Income Scheme (POMIS) in India offers a secure haven for investors seeking reliable returns with minimal risk. With a 5-year maturity period, it allows withdrawals after the first year, albeit with a 1-2% penalty. POMIS returns are taxable, but there’s no TDS.

The interest rate, currently at a steady 7.4% per annum, is determined by the Ministry of Finance. POMIS is open to Indian citizens above 18, with minors aged 10 and above eligible. Transferable at no cost to any post office, it’s an excellent choice for those seeking stability and simplicity in their investments, thanks to its government backing.

Senior Citizen Savings Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) in India is tailored for citizens aged 60 and above, offering a reliable avenue for medium-term financial goals with low risk. SCSS matures in 5 years, extendable for an additional 3 years. Deposits cannot exceed Rs. 15 lakh, and though premature withdrawals are allowed, they incur a 1.5% penalty.

With an annual deposit limit of Rs. 1.5 lakh, SCSS provides tax deductions. Backed by the Government, it carries minimal risk. Ideal for senior citizens seeking secure and tax-efficient investment options, SCSS currently offers a competitive return rate of 7.4% per annum.

Bank Savings Accounts

Bank savings accounts in India provide unmatched liquidity, which ensures easy access to funds. However, with an average interest rate of around 4%, they are not ideal for substantial returns. It is suitable for those needing immediate access to funds but less for those aiming for high returns or long-term growth.

Post Office Savings Account

A Post Office savings account in India offers a straightforward and secure option. With a 4% interest rate, it’s fully taxable but doesn’t have TDS deductions. You can open accounts for minors, with a deduction of Rs. 10,000 per annum on total savings account interest under Section 80TTA. Ideal for secure fund parking with easy access.

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY stands as a secure pension scheme offered by the Indian Government exclusively for senior citizens. Administered by LIC, this 10-year scheme is available for purchase until March 31, 2023.

PMVVY offers flexibility in choosing your pension payment frequency and deposit mode. It provides both maturity and death benefits along with the option to avail of a loan of up to 75% of the policy purchase price. Additionally, premiums paid are eligible for tax benefits under Sec 80C.

With an assured pension at a fixed rate of 7.4% per month, PMVVY is a low-risk investment option. It caters specifically to Indian senior citizens aged 60 and above, with no maximum age limit.

To invest, simply visit the nearest LIC office or follow the registration process on their website. PMVVY is ideal for retirees seeking a reliable source of income with government-backed security.

Government Bonds

Government bonds in India offer high security. Issued by the Government of India, they ensure fixed returns and come in various tenures (5 to 40 years). Government backing guarantees safety and some tax benefits. It is ideal for cautious investors valuing reliability and steady income.

Liquid and Ultra Short-Term Mutual Funds

Liquid and Ultra Short-Term Mutual Funds provide secure investment options in India. Liquid funds offer high liquidity, which is perfect for short-term needs. Ultra Short-Term Funds are for parking funds for 1 to 9 months, with potential returns ranging from 7% to 9%. They offer higher dividends but come with slightly more risk due to their short-term nature.

Employee Provident Fund (EPF)

Employees’ Provident Fund (EPF) in India is a secure savings and retirement scheme. Contributions from employees and employers are mandated with tax benefits under Section 80C. The interest rate currently at 8.15% for FY 2022-23 outperforms regular savings accounts. EPF is a long-term cushion which is ideal for those seeking stability and retirement security.

Benefits of Low-risk and High Returns Investments

Making informed investments ensures financial security and growth. Safe investments with high returns in India 2022 had a number of benefits to offer, which continue to exist to date. Let us look at some of them.

  • They provide financial stability through safe investments.
  • They promise high returns to help achieve long-term goals.
  • They create a financial cushion for unexpected expenses.
  • They lead to an increased overall wealth through tax-saving options.
  • They offer a comfortable retirement with prudent investments.

Challenges in Investments in India

Safe investments with high returns in India 2021 have undergone certain changes over the years for the better. However, there are some drawbacks to such investments.

  • Lower returns compared to riskier investments.
  • It may not keep pace with inflation.
  • Limited potential for substantial wealth accumulation.
  • Longer time horizons may be required for significant growth.
  • Tax implications can reduce overall returns.

Factors To Consider While Investing 

When pursuing safe investments with high returns in India, the following factors must be considered.

  • Risk Tolerance plays a vital role. You must assess your comfort with risk before investing.
  • Your Investment Horizon is crucial. You should define your short-, medium, and long-term goals beforehand. 
  • Diversification is key. Spreading investments across various assets helps minimise risks. Never place all your eggs in one basket.
  • Gauging liquidity is necessary to ensure access to funds as and when needed.
  • Consider Tax Efficiency and optimise returns while understanding tax implications.


Securing your financial future in an unpredictable environment is crucial. Study in great detail your goals, risk tolerance, investment horizon, and liquidity needs to make sound and profitable investments.

Exploring safe high-return options in India can build a robust financial safety net for the long term. Make informed choices to fortify your financial journey.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping lenders diversify their investments beyond traditional investment instruments ever since.



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