Best Government Investment Schemes to Invest in 2025 with High Returns in India

To uplift the income and financial standing of its citizens, time and again, the government keeps introducing different investment schemes in the country. These govt 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 benefit of opting for govt investment schemes is that they are risk-free and hassle-free. Interested individuals can opt for any govt. plan through post offices across India as well as through banks. Most such government schemes for investment 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 investment plan with guaranteed returns.

Government Investment Schemes

Scheme	Rate of Interest (ROI)	Investment (minimum and Maximum)	Lock-in Period
Atal Pension Yojana	Variable	Min. – INR 42 Max. – INR 1,500	Till retirement
Kisan Vikas Patra (KVP)	7.50%	Min. – INR 1000 Max. – No Limit	30 Months
National Savings Certificate (NSC)	7.70%	Min. – INR 1000 Max. – INR 1.5 lakhs	5 years
National Pension Scheme (NPS)	Market – linked	Min. – INR 6,000 Max. – No Limit	Till retirement
Post Office Time Deposit Account	6.8%-7.5%	Min. – INR 1000 Max. – No Limit	1 – 5 years
Post Office Monthly Income Scheme (POMIS)	7.40%	Min. – INR 1000 Max. – INR 9 lakhs	5 years
Pradhan Mantri Jan Dhan Yojana	4%	Min. – Zero Max. – No Limit	No Lock-in period
Public Provident Fund (PPF)	7.1 %	Min. – INR 500 Max. – INR 1.5 lakhs	15 years
Sukanya Samriddhi Yojana (SSY)	8.20%	Min. – INR 250 Max. – INR 1.5 lakhs	Till the child turns 21
Sovereign Gold Bonds (SGB)	2.50%	Min. – One gram of gold Max. – 500 grams of gold	5 years
Senior Citizen Savings Scheme (SCSS)	8.2 %	Min. – INR 1000 Max. – INR 30 lakhs	5 years

 

What Does Government Investment Schemes Imply?

Various schemes introduced by the government of India to support citizens financially are termed government investment schemes. These schemes are available to every citizen in India. Interested applicants can invest in such schemes by visiting a branch of a post office or an authorized Indian bank. Since the government investment schemes are risk-free, more and more citizens in India want to invest in these schemes. Besides, they also offer guaranteed returns. Many of these schemes allow tax benefits to help save money for the investor.

The government of India has introduced several beneficial investment schemes to serve different purposes of citizens. However, it is important to compare and evaluate the schemes before investing in them.

Best 10 Government-Backed Schemes for Investment that you can plan to invest in 2025:

Check out the curated list of the ten best government investment plan with high returns in India –

1. Atal Pension Yojana (APY)

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

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

The policyholder receives a guaranteed amount of pension in the range of 1000 to 5000 rupees as per the duration of the plan and the amount invested.

2. Pradhan Mantri Jan Dhan Yojana (PMJDY)

PMJDY is a lucrative govt 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 scheme with high returns available for Indian citizens. This is another risk-free scheme that allows 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

This government investment plan is available for a 15 year period and permits investors to have enough savings 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 govt and is available with the post-offices across India. National Savings Scheme is another best government investment plan 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 the National Savings Scheme (NSC)

• The plan offers a 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 savings plan crafted especially for the girl child in India. This scheme target parents of girls and supports 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 8.2% current interest rate.

Benefits of Sukanya Samriddhi Yojana (SSY)

• The SSY account allow the 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.

6. National Pension Scheme (NPS)

This is essentially a retirement benefit scheme for the senior citizens run by the government of India. The scheme promises a regular source of income to the policyholders after their retirement.

Benefits of National Pension Scheme (NPS)

• Each policyholder is allocated a unique Permanent Retirement Account Number.
• There is no maximum limit on the invested amount.
• There is flexibility to invest funds in either equities or government securities.
• Investment up to Rs. 50,000 is eligible for tax deductions under Section 80CCD (1B) of the ITA.
• Section 80C of the ITA allows tax deductions for investments up to Rs. 1.5 lakh.

7. Sovereign Gold Bonds (SGBs)

The Reserve Bank of India issues these gold bonds on the government’s behalf. These bonds are essentially government securities that are denominated in gold grams. The SGB scheme was launched by the Indian government in 2015 to help investors find an alternate means of possessing physical gold.

Key Features of Sovereign Gold Bonds (SGBs)

• Under the scheme, the investor is required to pay the issue price in cash and the bonds are redeemed in cash upon maturity.
• A fixed rate of interest of 2.5% per annum is offered on the issue price. This interest is credited to the bank account of the investor every 6 months.
• There is no risk or cost of storage since SGBs are paper-based securities.
• Premature withdrawal is permissible after the 5th year of the scheme.

8. Prime Minister Vaya Vandana Yojana (PMVVY)

This scheme was launched to assure a monthly pension amount to the elderly with a view to protecting their investment against the dip in interest rate.

Key Features of Prime Minister Vaya Vandana Yojana (PMVVY)

• Only senior citizens over 60 years old can apply for the scheme.
• The plan is valid for a term of 10 years.
• Loan facility can be availed after 3 years of investment into the scheme.
• The pension limit is determined based on the total family income of the policyholder.

9. Government Securities

Anybody can choose to invest their money in government securities as per their financial goals and needs. Bonds and treasury bills are a few examples of government securities.

Key Features of Government Securities

• They have a maturity term ranging between 91 days and 40 years, depending on the securities invested in.
• Loan facility is available against government securities as collateral.
• The terms and conditions may vary for different securities; hence, it is recommended to study the terms of each security thoroughly before investing in it.

10. Senior Citizens Savings Scheme (SCSS)

A government-backed savings and investment plan for retirees to help them live a comfortable life post-retirement, the SCSS is one of the most preferred post-retirement plans in India.

Key Features of Senior Citizens Savings Scheme (SCSS)

• Senior citizens 60 years old and above are eligible to apply for benefits under this scheme.
• Rate of interest is comparatively higher than other investment plans in India.
• The policy term is for 5 years and can be extended for an additional 3 years.

Top Govt Investment Schemes – Check Who is it For

Name of the Plan	Who is it For
Atal Pension Yojana	Senior citizens particularly from the financially weaker sections of the society
Pradhan Mantri Jan Dhan Yojana	Economically weaker sections of the population
Public Provident Fund	Anyone interested in earning high returns on investment
National Savings Scheme	Primarily rural areas with easy access to post offices
Sukanya Samriddhi Yojana	Girl child
National Pension Scheme	Senior citizens/retirees
Sovereign Gold Bonds	Anyone interested in seeking alternate means of possessing physical gold as investment
Prime Minister Vaya Vandana Yojana	Senior citizens aged 60 years and above
Government Securities	Anyone looking for a reliable and trusted medium of investment
Senior Citizens Savings Scheme	Senior citizens aged 60 years and above