Best Small Investment Plans in India for Smart Savings

Top Small Investment Plans for Smart Savings

Here are some smart savings and small investment plans you may consider exploring in 2025.

Public Provident Funds

Public Provident Funds (PPFs) are government-backed schemes that are highly preferred for their low-risk profile and guaranteed returns. PPFs come with a lock-in period of 15 years and offer dual advantages: savings and tax benefits. You may conveniently open a PPF account at your nearest bank or post office.

What you need to know?

• PPF investments are eligible for tax deductions of upto ₹1.5 lakhs under section 80C
• The maturity and interest earned on the PPF account are eligible for tax exemptions.

Senior Citizen Savings Scheme

Available to the residents of India, the Senior Citizen Savings Scheme is quite a popular choice. It offers two solid advantages: first, it is looked upon as a safe and reliable investment. Second, it typically offers one of the highest rates of interest among other savings investments. The scheme has a lock-in period of 5 years that can further be extended by another 3 years.

What you need to know?

• You may start with a minimum deposit of just ₹1000, maximum deposit is ₹30 lakhs
• The scheme qualifies for tax deductions towards deposits, however, the interest is taxable.

Life Insurance

From helping offer a safety net to the nominee in case of unexpected life events to helping you develop a disciplined saving habit via premiums, a variety of benefits make life insurance a smart investment. Further, these also help fulfil long-term financial goals. While endowment plans allow guaranteed maturity benefits, ULIPs are designed to offer you market-linked returns.

What you need to know?

• The premium paid towards life insurance offers tax benefits up to ₹1.5 lakhs
• While the death benefit is tax-free, there may be some taxation on the maturity benefits.

National Savings Certificate

Known as a government-initiated fixed-income investment scheme, NSC is suitable for investors with small to middle incomes. The scheme has a low-risk profile, plus the investment is quite secure. Currently, NSC offers an interest rate of 7.7%.

What you need to know?

• You may start with a minimum investment of just ₹1,000
• Eligible for tax benefits of up to ₹1.5 lakhs under Section 80C.

ELSS Mutual Funds

Equity Linked Saving Scheme, better known as ELSS, are the only type of mutual funds that allow you to get tax benefits. With a lock-in period of just 3 years, your investments have a better chance of growing. As ELSS generally outperform many other non-equity instruments, they are quite a smart investment.

What you need to know?

• The yearly return is not fixed and varies based on the market performance
• ELSS can be done in a lump sum and also through SIP, Systematic Investment Plan.

National Pension Scheme

Suitable for anyone aiming to save and create a retirement corpus. The scheme is available to both private and government employees, and anyone from 18 to 70 years of age can invest. NPS accounts are open for private as well as public sector employees, and they ensure disciplined and uninterrupted savings.

What You Need to Know?

• The NPS is not available for individuals in the armed forces.
• The scheme has delivered annualised returns of 9% to 12%.

Over to You

Given the era we are living in, making money doesn't need to start with a large sum. Rather, it starts with small savings. Small but consistent. No matter what type of investment plans you choose, it is important to align your choices with your financial goals and risk appetite.

At Jio Insurance Broking, you get to understand, compare, and analyse a variety of investment plans, and choose one that feels understandable to you and helps your money work for you. Remember, the right time to start an investment is now. Starting your savings today can help you build a stable tomorrow.