Looking for Risk-Free Investment? PPF, NSC & More Government Schemes That Guarantee Returns

Kuldeep Singh Chundawat

For Indian investors worried about stock market volatility or seeking safe and reliable returns, government-backed small savings schemes continue to be the preferred choice. These investments provide guaranteed returns with complete capital protection, making them ideal for conservative investors and those planning for long-term financial stability.

Here are some of the best risk-free government schemes you should consider in 2025:

Public Provident Fund (PPF)

The Public Provident Fund remains a top choice for long-term investors. Backed by the Central Government, it currently offers an attractive 7.1% annual interest, which is reviewed and revised quarterly. The lock-in period is 15 years, with tax-free interest and maturity proceeds.

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Investors can also claim tax exemption up to ₹1.5 lakh per year under Section 80C of the Income Tax Act. Given its safety and tax benefits, PPF is ideal for those planning retirement savings or long-term wealth creation.

Sukanya Samriddhi Yojana (SSY)

If you have a daughter below 10 years of age, Sukanya Samriddhi Yojana is an excellent choice. The scheme currently offers an impressive 8.2% annual interest — higher than PPF — with a lock-in period until the girl turns 21 years of age or until her marriage.

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The returns and maturity amount are completely tax-free, and the investment qualifies for deduction under Section 80C. SSY is one of the best tools for building a future education or marriage fund for your daughter.

National Savings Certificate (NSC)

The NSC, available through post offices, is a low-risk, fixed-return investment offering 7.7% annual interest, compounded yearly. The tenure is 5 years, and although the interest is taxable, the invested amount is eligible for deduction under Section 80C.

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With guaranteed returns and no market risk, NSC is a great option for those looking for medium-term savings.

Kisan Vikas Patra (KVP)

Popular among rural investors, Kisan Vikas Patra guarantees that your investment will double in 115 months (9 years 7 months), with an annual interest rate of 7.5%.

Available at post offices across INDIA, KVP is a no-frills, secure product that is especially suited for those looking for steady returns without worrying about stock market fluctuations.

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Why Choose Government Small Saving Schemes?

Unlike equities or mutual funds, these government-backed investment options are not impacted by market volatility. The capital remains 100% safe, and returns are predictable. Moreover, many of these schemes offer tax-saving benefits under the old tax regime.

In an era of global uncertainty and market instability, such safe investment avenues are critical for building financial security. Whether you’re saving for retirement, your child’s education, or simply building an emergency fund — these small savings schemes can form the foundation of a balanced investment portfolio.

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Author Profile

Kuldeep Singh Chundawat: My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.