5 Best Government Investment Schemes with High Returns in India

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Looking to invest in a beneficial Indian Government Investment Scheme? If so, you have landed on the right page. Read on to know more.

To uplift the income and financial standing of its citizens, time and again, the government keeps introducing different investment schemes in the country. These government investment schemes are offered to everyone including men, women, working people, business class, rural and urban population and so on. However, it is up to the citizens to compare different plans and to opt for the one that caters perfectly to their needs so that they can enhance their cash flow to the highest extent.

The best benefit of opting for govt. investment schemes is that they are risk-free and hassle-free. The interested individuals can opt for any govt. plan through post offices across India as well as through banks. Most such government plans permit tax deductions and allow the investor to save money on income tax. So, it is advisable for investors to evaluate the different investment plans offered by the government before selecting the best one and gain maximum benefit.

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Top 5 Government Investment Schemes with High Returns in India

Below is a list of the Best 5 Government Investment Schemes that you can plan to invest on:

1. Atal Pension Yojana (APY)

APY or Atal Pension Yojana is a pension scheme introduced by the government to assist the workers in the unorganized sectors so that they can earn a fixed income after they retire. This scheme serves as social security for the financially weak sections of the society by offering them pension for their old age.

Read More: How To Apply Online for Atal Pension Yojana On SBI?

Basic Information of Atal Pension Yojana (APY)

  • Pension Amount – Up to Rs.5,000
  • Age Limit –  18 years – 40 years
  • Contribution Period – Minimum 20 years
  • Exit Age – 60 years

Atal Pension Plan in India ranks among the top investment schemes for its citizens, especially the economically vulnerable sections. Here, the policyholder receives guaranteed amount of pension in the range of 1000 to 5000 rupees as per the duration of the plan and amount invested

2. Pradhan Mantri Jan Dhan Yojana (PMJDY)

PMJDY is a lucrative government investment scheme, especially crafted for people from financially weak sections to allow them easy access to financial services like:

  • Credit
  • Remittance
  • Insurance
  • Pension
  • Savings and Deposit Accounts

Basic Information of Pradhan Mantri Jan Dhan Yojana (PMJDY)

  • Minimum age to open an account – 18 years (minors 10 years)
  • Interest Rate – depends on interest rate of the savings account
  • Minimum Balance – Zero balance account
  • Accidental Insurance Cover – available as per ‘Rupay Scheme’
  • Overdraft Facility – Available

This savings account offers the facility of overdraft as per bank transactions and operations.

3. Public Provident Fund (PPF)

The PPF or Public Provident Fund is another top government investment schemes with high returns available for Indian citizens. This is another risk-free scheme that allow the investor to enjoy greater returns.

Basic Information of Public Provident Fund (PPF)

  • Tenure  – 15 years
  • Interest rate – 7.1% currently (keep changing)
  • Investment Amount – Min. 500 rupees and Max. Rs.1.5 lakh p.a.
  • Maturity Amount –  Mostly depend on tenure of investment

The plan is available for a 15 year period and permits investors to have enough saving on Income tax. The rate of interest in this scheme keeps varying every year, and thus the investors are advised to check the rate before investing on the plan.

4. National Savings Scheme (NSC)

This is a low-risk scheme initiated by the government and is available with the post-offices across India. This is another government investment scheme with high returns. This plan is also loaded with features and suits aptly for investors in India. It facilitates a fixed income and definite returns to generate best revenues. This plan is currently available at 6.8% rate of interest per annum.

Basic Information of National Savings Scheme (NSC)

  • Minimum investment – Rs.1000
  • Maximum investment – no max. limit
  • Interest Rate – 6.8%
  • Lock in tenure – 5 years
  • Tax Benefits – Up to Rs.1.5 lakh (as per Section 80C of Income Tax)

Benefits of National Savings Scheme (NSC)

  • The plan offers fixed return on investment higher as compared to FDs.
  • Offer Tax benefits under section 80C.
  • Available at an initial investment of Rs 1,000, which is very less.
  • The Plan is available with a maturity period of 5 years.

5. Sukanya Samriddhi Yojana (SSY)

SSY or Sukanya Samriddhi Yojana is another good government investment scheme. This is a saving plan crafted especially for girl child in India. This scheme target parents of girls and support them to financially secure the future of their daughter’s by opening an account in either a commercial bank or a post office. The SSY scheme was initiated by the Indian Government under the campaign named; ‘Beti Bachao Beti Padhao’ and is available at 7.6% current interest rate.

Benefits of Sukanya Samriddhi Yojana (SSY)

  • SSY account allow highest return on tax deduction, and it comes with the EEE status.
  • The contributions per year in this account (Rs. 1.5 lakh/year) is qualified for tax deduction under Section 80C of Income Tax Act.
  • The sum received after the account matures is non-taxable.
  • Thus it presents incredible Tax Benefits which can’t be ignored.
  • It requires a small amount to open a SSY account.
  • You can deposit for 15 years, while the account matures in 21 years and allow you to earn continued interest on the amount you deposited.


The Indian Government has made many good plans of investment available to the citizens. As already discussed, now you have information about these plans. Further, they facilitate investment opportunities for everyone alike. There are many government investment schemes for senior citizens as well as for children and people working in the unorganized sectors. You can check the different policies and choose the one that suits you best.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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