Top 6 Best Safe Investment Options in India

We all always want the safe and best in our lives and the same is applicable to personal finances. I know many of you are always on the lookout for the Best Safe Investment Options for investment.

Safe investments are one in which the risk of losing the principal money is almost zero.

The primary purpose of safe investments is to protect your principal money. Their secondary purpose is to provide returns on your investments.

Safe investments are good for risk-averse investors who do not prefer to take the risk, which is why they prefer to make safe investments.

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Top 6 Best Safe Investment Options in India

There are various investment options in India that offer high returns. But in reality, returns and risk are inversely related, i.e., higher the risk, higher the, and vice versa.

While selecting a safe investment option, it is quite obvious that you would not be sure which option to select. To choose the best investment option, you need to analyze your requirements and risk appetite before investing.

To prepare the list of top 6 best safe investment options in India, I have evaluated numerous investment avenues. Here are the top 6 Best Safe Investment Options in India. Some of these investment options are also tax-efficient.

Bank Fixed Deposit (FD)

The Bank Fixed Deposit is a safe choice for investment in India. Bank Fixed deposit offers a fixed rate of interest without any risk.

Banks offer a higher interest rate for FD than a savings bank account. Bank Fixed Deposits offer slightly higher interest for senior citizens.

Note that the interest earned on the bank fixed deposit is taxable. It is taxed as per your income tax slab. The tenure for a bank FD’s range between 7 days to 10 years.

You can invest in bank FDs via online mode or by visiting a branch of the bank.

Bank Fixed Deposit (FD)
Expected Returns	3.5% to 8%
Investment Tenure	7 days to 10 years
Tax Applicability	Interest is taxable at investor slab

Tax Saving Fixed Deposit

The 5-year tax saving fixed deposit is also an easy and best safe investment option for salaried people. The investment up to Rs.1.5 lakh is deducted from your taxable income under Section 80C of the income tax Act.

Tax saving FD offers a moderate return of approximately 5.5% to 7.5% per annum. Note that the tax-saving FDs have a lock-in period of 5 years and premature withdrawals are not allowed.

You can invest in these tax-saving fixed deposit through any public or private sector bank.

Tax Saving Fixed Deposit
Expected Returns	5.5% to 7.5%
Investment Tenure	5 years
Tax Applicability	The investment up to Rs 1.5 lakh is deducted from taxable income u/s 80C. Interest is taxable at investor slab.

PPF (Public Provident Fund)

PPF is a government-backed investment scheme, it makes it a safe investment. It is one of the popular and best safe investment options in India.

PPF offers risk-free returns with an attractive interest rate. It is a good investment option if you want to save taxes with guaranteed returns.

PPF has a long tenure of 15 years. You must deposit a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh in a year in your PPF account.

PPF (Public Provident Fund)
Expected Returns	7% to 7.5%
Investment Tenure	15 years
Tax Applicability	The investment up to Rs 1.5 lakh is deducted from your taxable income under Section 80C. Returns are tax-free.

Monthly Income Scheme Account (MIS)

Post Office MIS Account is one of the best safe investment options in India. It promises you a safe and regular monthly income. It is a government-backed scheme, therefore, your investment is safe and secure until maturity.

In the MIS account, you invest a certain amount and a fixed interest income is paid out to you on monthly basis. You can invest maximum Rs. 4.5 lakh in MIS in single account.

Monthly Income Scheme Account has a lock-in period of 5 years. It is suitable for retired and old age peoples who want safe and regular monthly income.

Monthly Income Scheme Account (MIS)
Expected Returns	6.6%
Investment Tenure	5 years (monthly income)
Tax Applicability	Interest income is taxable at the investor slab.

National Savings Certificate (NSC)

The National Savings Certificate, popularly known as NSC, is a fixed income investment scheme. It can be purchased from any post office. It is another best safe investment option with good returns.

NSC is a government saving bond. Investment in NSC qualifies for tax rebate under Section 80C. This scheme is preferred by risk-averse investors.

NSC earns a fixed interest which the government revises every quarter. It offers one of the highest interest rates among fixed-rate schemes.

NSC (National Savings Certificate)
Expected Returns	6.8%
Investment Tenure	5 years
Tax Applicability	Investment up to Rs. 1.5 lakh is eligible for 80C deduction. Interest income is taxable.

Recurring Deposit

Recurring deposit is a type of term deposit. Under RDs, you make regular monthly deposits of a fixed amount over a period of time. RD is a good option for those investors who want to build up savings for the long term.

Recurring deposit offers a higher interest rate than a bank savings account. You can open an RD account in almost all the banks and post offices in India.

Recurring Deposit
Expected Returns	5.8% to 7.5%
Investment Tenure	6 months to 5 years
Tax Applicability	Interest income is taxable at investor income tax slab

Final Thoughts

The safe investment options mentioned above are in no particular order. These investment avenues may not bring high returns, but you will also not lose money either. These top 6 best safe investment options in India will keep your investment safe while paying you a fairly modest return.

Note: This post was originally published on October 10, 2019 and has been completely updated for accuracy and comprehensiveness.