Top 10 Best Investment Plans in India

Starting an investment in the early days of your career will ensure that you have collected enough wealth till retirement. Instead of leaving your money in a savings account, you can invest in different instruments like stocks, mutual funds, fixed deposit plans, post office time deposits, NPS, etc. after analyzing your risk-appetite, market conditions, and many other factors. Instead of your risk-appetite and condition of the economy, you can invest in the 10 best investment plans that we have listed below:

Senior Citizen Savings Scheme

The Government of India has brought an instrument called the Senior Citizen Savings Scheme which allows senior citizens to generate a regular flow of income. It offers a high-interest rate and is ideal for retirees who are looking for a long-term investment avenue.


If you are a part of an organization that employs more than 20 employees then it is mandatory to open an EPF or PF account. You will need to contribute approximately 12% of your salary towards this account and an equal amount is paid by your employer as well. The accumulated deposits will fetch interest at a high rate and enable you to save enough money till retirement. Though a stable investment option, its benefits can be truly felt over a longer tenor.


Public Provident Fund i.e. PPF is another government-backed scheme that allows you to start investing from Rs. 500 every month. It comes with a tenor of 15 years and provides a high interest rate as well. However, its liquidity options are a bit strict and due to its long tenor, you cannot utilize it for attaining your short-term financial objectives.

Recurring deposits

A recurring deposit is a better option for raising a quick corpus for satisfying your short-term needs. You need to deposit a fixed amount in your RD account every month and it will grow at a fixed interest rate till maturity. Only your initial deposit will be locked-in for the whole tenor whereas the subsequent tenors will not earn substantial interest as they are locked-in for a lesser period.


National Pension Scheme is a long-term investment option for individuals who are looking to gather enough funds and a regular pension after retirement. Under this scheme, you will need to invest a fixed amount every month till retirement. Once you turn 60, 40% of your deposits along with the interest will be paid directly to you and the remaining amount will be used to provide a monthly pension.

Post Office Time Deposits

Post Office Time Deposits is quite similar to an FD when it comes to its features as it allows you to pick a flexible tenor for your deposited amount. Many investors prefer it because of its steady rate of interest and stability. However, its rate of interest is high and the income tax is also exempted only for the 5-year plan.


National Savings Certificate is a government-backed scheme that comes with a tenor of 5 years and provides a lucrative interest rate to the investors. Tax benefits as per section 80C of the Income Tax Act are applicable on this instrument but its premature withdrawal policies are quite strict. Also, NSC will not offer a flexible tenor to you.


If you have enough experience and knowledge about the stock market then you can invest in stocks. There are various types of Investment Plans here such as intraday trading, equities, currencies, futures, and options, etc. Therefore, you will have to research each of these options before investing.

Fixed Deposits

If you want to grow your corpus at a steady rate without exposing it to risks then FDs will be your natural choice. Bajaj Finance FD is offering fixed deposit rates in India of up to 7.25% and it also comes with a flexible tenor ranging from 12 to 60 months.

Apart from providing enough returns it also allows you to invest in either cumulative or non-cumulative FDs. Senior citizens are eligible for a 0.25% higher FD rate and if you are under 60 years of age then you can get a 0.10% excess FD rate by investing via an online FD form.

Also, it is a stable investment avenue since it has received FAAA/stable ratings from CRISIL and MAAA/stable ratings from ICRA. If you consider all these options and features, it would be certainly one of the better instruments to invest your money in 2021.

Before investing your money, you must look at the features of various Investment Plans according to your risk-taking ability and present market scenario. Among the different types of instruments in the market, EPF, SCSS, PPF, NPS, NSC, RDs, Stocks, Debt Funds, Post Office Time Deposit, and FDs are favorable for growing your savings. However, corporate FDs like Bajaj Finance FD can prove to be one of the better investment plans in 2021 as it provides one of the highest fixed deposit rates in India along with a flexible tenor and other interesting options. Moreover, it is also a stable investment scheme and provides a higher interest rate to senior citizens and online investors.