20 Best Money Saving Plan: Your Ultimate Guide to Save More in India

Saving money is an essential part of achieving financial stability and security. Whether you’re a student, a young professional, or someone planning for retirement, having a structured money saving plan can help you meet your financial goals with ease. In this article, we will provide you with practical strategies, explain the best saving options available in India, and guide you step by step on how to create a personalized money saving plan. Our aim is to make saving money simple and effective for everyone, even if you’re just starting out.

Why Do You Need a Money Saving Plan?

A money saving plan helps you manage your income and expenses wisely, enabling you to:

1. Build an emergency fund for unforeseen expenses.
2. Achieve long-term goals like buying a house or funding your children’s education.
3. Prepare for retirement with sufficient savings.
4. Develop financial discipline by reducing unnecessary expenses.

Having a clear plan not only reduces financial stress but also empowers you to live a more secure and fulfilling life.

List of Best Money Savings Plan in India

Here’s a list of some of the best money saving plan in India for 2025:

Sr. No.	Savings Plan	Interest Rate
1	Public Provident Fund (PPF)	7.1%
2	National Savings Certificate (NSC)	7.7%
3	Senior Citizen Savings Scheme (SCSS)	8.0%
4	Post Office Monthly Income Scheme (MIS)	6.6%
5	Recurring Deposit (RD)	6.5% – 7.0%
6	Tax Saving Fixed Deposits	6.5% – 7.75%
7	Kisan Vikas Patra (KVP)	6.9%
8	Unit Linked Insurance Plan (ULIP)	13.8% – 27.5%
9	Equity Linked Savings Scheme (ELSS)	10% – 12%
10	Sukanya Samriddhi Yojana (SSY)	8.2%
11	National Pension System (NPS)	10% – 12%
12	Fixed Deposit (FD)	6.5% – 7.5%
13	Liquid Mutual Funds	6.0% – 7.0%
14	Ultra Short-Term Debt Funds	6.5% – 7.0%
15	Direct Equity Investment	10% – 15%
16	Real Estate Investment	8% – 12%
17	Gold Investment	6% – 8%
18	Commercial Real Estate	8% – 10%
19	Initial Public Offer (IPO)	Variable
20	Mutual Funds	8% – 15%

Let’s see these 20 best money saving plan one-by-one in detail :-

1. Public Provident Fund (PPF)

The Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India. It offers risk-free returns and is ideal for individuals with a low-risk appetite. Key features include:

• Interest Rate: 7.1% per annum.
• Tenure: 15 years, extendable in blocks of 5 years.
• Minimum Investment: ₹500 per annum.
• Maximum Investment: ₹1.5 lakh per annum.
• Tax Benefits: Contributions qualify for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh.
• Loan Facility: Loans against PPF investments are available from the 3rd to the 6th year.
• Eligibility: Open to Indian residents; minors can open accounts with parental operation.

Best For: Long-term goals like retirement or children’s education.

2. National Savings Certificate (NSC)

The National Savings Certificate (NSC) is a secure money saving plan offered by the Government of India. It is a popular choice for small to mid-income investors looking for tax-saving options. Key features include:

• Interest Rate: 7.7% per annum.
• Tenure: 5 years.
• Minimum Investment: ₹1,000.
• Maximum Investment: No upper limit.
• Tax Benefits: Contributions qualify for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh.
• Loan Collateral: NSC certificates can be used as collateral for loans.

Best For: Middle-income earners looking for safe, medium-term savings.

3. Senior Citizen Savings Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) is a specialized money saving plan for seniors aged 60+ (or 55+ for retirees). It provides regular monthly income with high-interest returns and tax benefits.

• Interest Rate: 8.2% per annum.
• Tenure: 5 years, extendable by 3 years.
• Minimum Investment: ₹1,000.
• Maximum Investment: ₹30 lakh.
• Tax Benefits: Contributions qualify for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh.
• Eligibility: Indian residents aged 60+ (or 55+ if retired under VRS/superannuation).

Best For: Seniors needing monthly income post-retirement.

4. Post Office Monthly Income Scheme (MIS)

The Post Office Monthly Income Scheme (MIS) is a low-risk money saving plan that provides fixed monthly income. It’s great for risk-averse investors like homemakers or retirees.

• Interest Rate: 7.4% per annum, payable monthly.
• Tenure: 5 years.
• Minimum Investment: ₹1,500.
• Maximum Investment: ₹4.5 lakh per individual or ₹9 lakh for joint accounts.
• Tax Benefits: No deductions, but TDS applies on interest above ₹50,000/year.
• Loan Facility: Partial withdrawal allowed after 1 year.
• Eligibility: Open to Indian residents (individuals or minors via guardians).

Best For: Those needing regular income (e.g., housewives, retirees).

5. Recurring Deposit (RD)

The Recurring Deposit (RD) is a flexible money saving plan where individuals deposit a fixed amount regularly (usually monthly) for a specified period. Key features include:

• Interest Rate: Varies, typically around 6.7% per annum.
• Tenure: 5 to 10 years.
• Minimum Investment: ₹100 per month.
• Maximum Investment: No limit, but tax benefits capped at ₹1.5 lakh/year under Section 80C.
• Tax Benefits: Interest earned is taxable.
• Loan Facility: Not available.
• Eligibility: Open to Indian residents (individuals or minors via guardians).

Best For: Building emergency funds or short-term goals (e.g., vacations, gadgets).

6. Tax Saving Fixed Deposits

Tax Saving Fixed Deposits (FDs) are a popular money saving plan that offers fixed returns and tax benefits. These deposits are available with a lock-in period of 5 years, making them suitable for individuals looking for secure investment options. The interest earned is taxable, but the principal amount qualifies for tax deductions. Ideal for risk-averse investors, FDs offer guaranteed returns.

• Interest Rate: 6.5%–7.5% per annum (varies by bank)
• Tenure: 5 years
• Minimum Investment: ₹1,000
• Maximum Investment: ₹1.5 lakh per financial year
• Tax Benefits: Up to ₹1.5 lakh under Section 80C
• Loan Facility: Available after 1 year (up to 75% of deposit)
• Eligibility: Resident Indians

Best For: Salaried professionals wanting tax-free savings with guaranteed returns.

7. Kisan Vikas Patra (KVP)

Kisan Vikas Patra (KVP) is a government-backed money saving plan aimed at encouraging long-term savings. It guarantees to double the investment in approximately 115 months (9 years and 5 months). With no upper limit on investment, KVP is suitable for individuals looking for secure and guaranteed returns. The interest earned is compounded annually.

• Interest Rate: 7.5% compounded annually
• Tenure: 115 months (9 years and 5 months) to double investment
• Minimum Investment: ₹1,000
• Maximum Investment: No upper limit, but tax benefits capped at ₹1.5 lakh/year
• Tax Benefits: None
• Loan Facility: Available against the certificate
• Eligibility: Indian citizens above 18 years

Best For: Farmers or rural savers needing a simple, long-term savings option.

8. Unit Linked Insurance Plan (ULIP)

Unit Linked Insurance Plans (ULIPs) are a versatile money saving plan that combines life insurance with investment opportunities in equity and debt funds. ULIPs provide the dual benefit of risk cover and market-linked returns. These plans have a minimum lock-in period of 5 years, but it is recommended to stay invested for at least 15 years to maximize returns.

• Interest Rate: 13.8% – 27.5%
• Tenure: Minimum 5 years (recommended 15 years)
• Minimum Investment: ₹1,000/month (varies by insurer)
• Maximum Investment: No upper limit
• Tax Benefits: Premiums up to ₹1.5 lakh under Section 80C; maturity proceeds tax-free under Section 10(10D)
• Loan Facility: Available after 3 years
• Eligibility: Indian residents aged 18–65 years

Best For: Investors comfortable with market risks but wanting insurance coverage.

9. Equity Linked Savings Scheme (ELSS)

Equity Linked Savings Scheme (ELSS) is a popular tax-saving money saving plan that invests primarily in equities. ELSS offers the potential for higher returns compared to traditional savings schemes, thanks to its equity exposure. It has a lock-in period of 3 years, making it one of the shortest lock-in periods among tax-saving instruments. The returns are market-linked, and the principal amount qualifies for tax deductions.

• Interest Rate: 12%–15% average annual returns (market-dependent)
• Tenure: Minimum 3-year lock-in (can stay invested longer)
• Minimum Investment: ₹500/month (SIP) or lump sum
• Maximum Investment: ₹1.5 lakh per financial year
• Tax Benefits: Deductions under Section 80C. Long-term gains (over ₹1 lakh) taxed at 10%
• Loan Facility: Not available
• Eligibility: Indian residents with PAN cards

Best For: Young professionals aiming for wealth creation with tax savings.

10. Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) is a government-backed money saving plan designed to promote the welfare of girl children. It offers a high rate of interest and tax benefits, making it an attractive savings option for parents. The account can be opened anytime before the girl child turns 10, and deposits can be made for up to 15 years. The scheme matures when the girl reaches 21 years or gets married after 18 years.

• Interest Rate: 8.2% per annum (compounded annually)
• Tenure: Until the girl child reaches 21 years or gets married, whichever is earlier
• Minimum Investment: ₹250/year
• Maximum Investment: ₹1.5 lakh per financial year
• Tax Benefits: Deductions under Section 80C. Interest and maturity amount tax-free
• Loan Facility: Partial withdrawal allowed after the girl turns 18 (for education/marriage)
• Eligibility: Indian residents with a girl child below 10 years

Best For: Parents planning for their daughter’s future expenses.

11. National Pension System (NPS)

The National Pension System (NPS) is a government-backed retirement savings plan that helps individuals save for their post-retirement life. It offers market-based returns and is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

• Interest Rate: 10%–12% per annum (market-linked returns)
• Tenure: Until retirement (min. 60 years of age). Partial withdrawals allowed after 10 years
• Minimum Investment: ₹500/month or ₹1,000/year.
• Maximum Investment: No limit, but tax benefits capped at ₹2 lakh/year (₹1.5 lakh under Section 80C + ₹50,000 under Section 80CCD(1B))
• Tax Benefits: Maturity corpus tax-free up to 60%, remaining 40% used to buy annuity (pension)
• Loan Facility: Not available
• Eligibility: Indian citizens aged 18-70 years.

Best For: Salaried professionals planning for retirement.

12. Fixed Deposit (FD)

A Fixed Deposit (FD) is a low-risk money saving plan where you invest a lump sum in banks for fixed returns. It’s ideal for short-term goals or emergency funds.

• Interest Rate: 6.5%–7.5% per annum (varies by bank)
• Tenure: 7 days to 10 years
• Minimum Investment: ₹1,000 (varies by bank)
• Maximum Investment: No limit
• Tax Benefits: Interest taxable; TDS deducted if interest exceeds ₹40,000/year (₹50,000 for seniors)
• Loan Facility: Available (up to 90% of deposit)
• Eligibility: Indian residents, HUFs, trusts

Best For: Risk-averse savers needing guaranteed returns.

13. Liquid Mutual Funds

Liquid Mutual Funds are a flexible money saving plan that invests in short-term debt instruments (e.g., treasury bills). They offer easy withdrawals within 24 hours, making them perfect for emergency funds.

• Interest Rate: 6.0%–7.0% per annum (returns vary daily)
• Tenure: No lock-in (redeem anytime)
• Minimum Investment: ₹100 – ₹500
• Maximum Investment: No limit
• Tax Benefits: Short-term gains (held <3 years) taxed as per income slab. Long-term gains taxed at 20% with indexation.
• Loan Facility: Not available
• Eligibility: Indian residents with PAN cards

Best For: Parking surplus cash for 3–6 months.

14. Ultra Short-Term Debt Funds

Ultra Short-Term Debt Funds are a low-risk money saving plan that invests in bonds/securities with maturities of 3–6 months. They offer slightly higher returns than savings accounts.

• Interest Rate: 6.5%–7.0% per annum (market-linked)
• Tenure: 3 months to 1 year
• Minimum Investment: ₹1,000–₹5,000
• Maximum Investment: No limit
• Tax Benefits: Same as liquid funds (STCG taxed as per slab, LTCG at 20% with indexation)
• Loan Facility: Not available
• Eligibility: Indian residents with PAN cards

Best For: Short-term goals like vacations or gadget purchases.

15. Direct Equity Investment

Direct Equity Investment is a high-risk, high-reward money saving plan where you buy shares of companies. It requires research but can generate wealth over time.

• Interest Rate: 10%–15% average annual returns (market-dependent)
• Tenure: No fixed period (long-term recommended)
• Minimum Investment: ₹500–₹1,000 (price of 1 share)
• Maximum Investment: No upper limit
• Tax Benefits: Dividends taxable as income. Long-term gains (held >1 year) taxed at 10% over ₹1 lakh
• Loan Facility: Shares can be pledged for loans
• Eligibility: Indian residents with a Demat account

Best For: Experienced investors comfortable with market risks.

16. Real Estate Investment

Real Estate Investment is a popular money saving plan where you buy property (residential/commercial) to earn rental income or profit from price appreciation. It’s ideal for long-term wealth creation.

• Interest Rate: 8%–12% annual returns (rental yield + appreciation)
• Tenure: Long-term (5+ years)
• Minimum Investment: ₹10 lakh (varies by location)
• Maximum Investment: No upper limit
• Tax Benefits: Deductions on home loan interest (Section 24) and principal (Section 80C)
• Loan Facility: Property can be mortgaged for loans
• Eligibility: Indian residents, NRIs (under RBI guidelines)

Best For: Investors with high capital seeking stable, long-term growth.

17. Gold Investment

Gold Investment is a traditional money saving plan in India, offering a safe hedge against inflation. You can invest in physical gold, ETFs, or Sovereign Gold Bonds (SGBs).

• Interest Rate: 6%–8% annual returns (price appreciation + SGB interest)
• Tenure: Flexible (1 year to 8 years for SGBs)
• Minimum Investment: ₹1,000 (Physical gold), ₹1 gram (SGB)
• Maximum Investment: No upper limit (Physical gold), ₹50,000 per person per fiscal year (SGB)
• Tax Benefits: SGB interest tax-free; capital gains tax-free if held till maturity
• Loan Facility: Gold loans available (up to 75% of gold value)
• Eligibility: Indian residents (individuals, HUFs)

Best For: Risk-averse investors wanting cultural and financial security.

18. Commercial Real Estate

Commercial Real Estate is a high-value money saving plan where you invest in offices, shops, or warehouses for rental income. Returns are higher than residential properties but require more capital.

• Interest Rate: 8%–10% annual returns (rental yield)
• Tenure: 5–10 years (long-term)
• Minimum Investment: ₹50 lakh (depends on city and property type)
• Maximum Investment: No upper limit
• Tax Benefits: Deductions on maintenance, depreciation, and loan interest
• Loan Facility: Properties can be mortgaged
• Eligibility: Businesses, HNIs (High Net-Worth Individuals), or NRIs

Best For: Experienced investors with large capital.

19. Initial Public Offer (IPO)

Investing in an IPO (Initial Public Offer) is a high-risk money saving plan where you buy shares of a company during its stock market debut. It can generate quick gains if the stock rises.

• Interest Rate: Variable (depends on company performance)
• Tenure: Short to long-term (exit when stock price peaks)
• Minimum Investment: ₹10,000–₹15,000 (varies per IPO)
• Maximum Investment: No upper limit
• Tax Benefits: Long-term gains (held >1 year) taxed at 10%
• Loan Facility: Shares can be pledged for loans
• Eligibility: Indian residents with a Demat account

Best For: Risk-tolerant investors tracking market trends.

20. Mutual Funds

Mutual Funds are a versatile money saving plan where you pool money with other investors to buy stocks, bonds, or gold. They suit all risk appetites and goals.

• Interest Rate: 8%–15% annual returns (equity funds offer higher returns)
• Tenure: Flexible (1 year to decades)
• Minimum Investment: ₹500/month (SIP) or ₹1,000 lump sum
• Maximum Investment: No upper limit
• Tax Benefits: Deductions under Section 80C for ELSS funds, tax-free dividends
• Loan Facility: Loans against mutual fund units (up to 50% value)
• Eligibility: Indian residents with PAN card

Best For: Beginners and experts wanting diversified, managed portfolios.

Recommended Read :- How To Double Your Money: Explore everything you need

Step-by-Step Guide to Create an Effective Money Saving Plan

Step 1: Set Clear Financial Goals

Start by identifying your short-term, medium-term, and long-term financial goals.

• Short-Term Goals: Saving for a vacation or buying a gadget.
• Medium-Term Goals: Saving for a down payment on a house or a new car.
• Long-Term Goals: Planning for retirement or your child’s education.

Write down your goals and assign a specific amount and deadline for each.

Step 2: Analyze Your Income and Expenses

Track your monthly income and expenses to understand your spending habits.

• List all sources of income, including salary, freelance work, and investments.
• Categorize your expenses into essentials (rent, groceries, utilities) and non-essentials (entertainment, dining out).

By analyzing your spending, you can identify areas where you can cut back.

Step 3: Create a Monthly Budget

A budget is a crucial part of any money saving plan.

• Allocate a fixed percentage of your income to different categories.
  • 50% for necessities
  • 30% for discretionary spending
  • 20% for savings and investments

Stick to this budget and review it regularly to stay on track.

Step 4: Build an Emergency Fund

An emergency fund is essential to cover unexpected expenses like medical emergencies or job loss.

• Aim to save at least 3 to 6 months’ worth of living expenses.
• Keep this fund in a liquid account like a savings bank account or liquid mutual fund.

Step 5: Invest Wisely

Investing your savings can help grow your wealth over time.

• Public Provident Fund (PPF): A safe long-term investment option with tax benefits.
• Fixed Deposits (FD): Ideal for risk-averse individuals.
• Systematic Investment Plans (SIPs): Invest in mutual funds for higher returns over time.
• National Pension System (NPS): A good option for retirement planning.

Step 6: Monitor and Adjust Your Plan

Regularly review your money saving plan to ensure it aligns with your financial goals.

• Adjust your budget based on changes in income or expenses.
• Reallocate investments if necessary to maximize returns.

Want to Calculate Your Saving Click Here :- Money Saving Plan Calculator

Top Money Saving Tips for Indians

Are you looking for ways to save money and become a master of your finances? Look no further! Here, you will learn smart tips to save money like a pro. From budgeting and tracking your expenses to taking advantage of discounts and avoiding impulse purchases, these tips will help you save money and stay on top of your finances.

1. Make a Budget and Stick to It

Creating a budget is the first step towards saving money. Identify your fixed and variable expenses, set a savings goal, and allocate your income accordingly. Track your expenses regularly and adjust your budget as needed.

2. Reduce Some Expenses

Cutting back on unnecessary expenses can help you save a significant amount of money. Consider reducing your expenses on dining out, entertainment, and shopping, and opt for more affordable alternatives.

3. Avoid Borrowings

Borrowing money can lead to additional financial burden in the form of interest and fees. It is essential to avoid borrowing as much as possible and focus on building your savings instead.

4. Save With a Goal in Mind

Having a specific savings goal can help you stay motivated and focused. Whether it is saving for a down payment on a house, a vacation, or an emergency fund, having a goal in mind can help you track your progress and make necessary adjustments.

5. Make the most of your bonuses

If your company offers bonuses, use them wisely to boost your savings. Instead of spending your bonus, consider investing it or adding it to your savings account.

6. Setup Auto-Deduct

Setting up automatic deductions from your salary can help you save money effortlessly. You can have your salary deducted and deposited into your savings account every month in a specific amount.

7. Use Saving Apps

There are several saving apps available in India that can help you track your expenses, set savings goals, and automate your savings. Some popular saving apps in India include Money View, Walnut, and ETMoney.

Recommended Read :- 7 Simple Money Management Tips to Better Manage Your Money

Conclusion

Creating a money saving plan is a crucial step toward achieving financial stability and meeting your future goals. By setting clear objectives, budgeting wisely, and investing strategically, you can build a secure financial future. Start small, stay consistent, and watch your savings grow over time. Follow these tips and strategies to make the most of your money and secure your financial well-being in India.

Remember to keep your investment portfolio diversified to minimize risks and maximize returns. By investing your savings wisely, you can make the most of your hard-earned money and secure a better financial future for yourself and your loved ones.

Related Read :- राष्ट्रीय इलेक्ट्रॉनिक निधि अन्तरण

Frequently Asked Questions (FAQ’s)

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