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Top 5 Government Investment Programs in India for 2022


1. Introduction 

As human beings, we all think about the future more than our present. We all want to make our future financially sound and secure. Investment can help you in improving your current financial situation. Making money is not easy. You can make decent money through investing, but it is crucial to understand and analyze various investment instruments thoroughly before making an investment decision.

There is, of course, no doubt that it can be challenging to have an in-depth knowledge of all investment options. But, investment is something that should never be undertaken with little knowledge. So, today in this blog, we will inform you about the Top 5 Government Investment Schemes in India in 2022; investing in them gives you risk-free and higher returns than fixed deposits.

A thorough analysis of the Government Investment Schemes In India will help you understand the investment objectives and risks involved in whichever option you want. Most of us look for investment options with minimal risk and high returns. But unfortunately, low risk and high return do not go together. It is almost impossible to get high returns without high risk.

A bank fixed deposit is the first thing that springs to mind if you are new to investing and are seeking a balanced portfolio that includes safe and low-risk investments. But today is the time to get out of bank fixed deposits. Instead, you can consider investing in such instruments which are risk-free and, at the same time, can give higher returns than fixed deposits.

Many investment schemes run by the Government of India can solve this problem of yours. The government of India offers many investment options through post offices, banks, and other financial institutions to get good returns. The rates of interest in these schemes are also slightly higher. Since the government operates this scheme, your money is much safer here than other investment options, and you feel more inclined to believe in it.

2. 5 Best Government Investment Schemes and Plan in India With High Returns 

2.1 Public Provident Fund (PPF)

Public Provident Fund (PPF) is one of the most popular investment plans with high returns in 2022 for salaried individuals and investors who wish to earn high returns with low risk. Public Provident Fund (PPF) has a lock-in period of 15 years. Therefore, PPF can give you much better returns if you are comfortable. However, it highlights the option to withdraw partially after the mandatory lock-in period of 5 years, which brings certain conditions.

Talking about the interest earned after investing in PPF, the current interest of 7.10% per annum is given, which is very good for a common middle-class salaried.

The EEE feature of PPF makes it much better than other investment options of the government. Section 80C allows for tax deductions of up to Rs 1.5 lakh per year, sometimes known as the tax-saving investment option. But, most importantly, its tax-free withdrawal at maturity and interest make it the most preferred investment option.

You can open a Public Provident Fund (PPF) account at your local bank or post office and start making PPF investments immediately. You don't need to consider how secure your PPF investment is. Since this is an investment option backed by the Government of India, the investment is considered the safest.


  • The PPF account is flexible; the minimum and maximum deposits per fiscal year equal 500 and 1,50,000 rupees, respectively. You can start investing in it even with Rs 500.

  • The central government backs PPF, so it gives guaranteed returns.

  • The interest earned on this is tax-free. As a result, the returns are higher than any bank FD.

  • Parents can also open a PPF account for their minors themselves.

  • The good thing about PPF is that a loan facility is also available, which you can take advantage of between the third and sixth financial year.


  • PPF accounts cannot be closed prematurely. Exception- except in case of death.

  • PPF has a huge lock-in period of 15 years.

  • A joint account is not allowed in this.

  • HUF or Charitable Trust cannot open PPF accounts.

  • The returns are low compared to investment instruments like mutual funds and NPS.

2.2 National Pension Scheme (NPS)

Like PPF, National Pension Scheme (NPS) is a retirement scheme supported by the Government of India.

The best thing about the National Pension Scheme (NPS) is that you get a lot of options for investing in it. For example, you will find options like equities, corporate bonds, government securities, and alternative investment funds (AIFs). In addition, your risk tolerance will help you determine where to invest your money. For example, if you are nearing your retirement, you can choose to invest in corporate bonds and government securities. Therefore, it is a safe investment, and you will get good returns.

On the other hand, if you are young, you can invest 75% of your money in equities. So it will help you make a good amount in the long run.

Being backed by the government, you also get tax exemption up to Rs 2 lakh in NPS. If you want to invest in the NPS plan, you must be an Indian citizen between the ages of 18 & 65. The minimum amount to invest in NPS is Rs 1,000 per month, and the returns are higher than PPF.

There is a moderate level of risk in NPS. On retirement, you can withdraw only 60% of your investment, Whereas the remaining 40% is required to buy an annuity.


  • Professional, knowledgeable, and experienced managers governed by the Pension Fund Regulatory and Development Authority invest your corpus in NPS (PFRDA).

  • It has two tiers - Tier 1 and Tier 2. Tier 1 account can be opened with an investment of Rs 500 only. In contrast, Tier 2 accounts can only be opened with an investment of Rs 1000.

  • Investments made in Tier 2 accounts give higher returns.

  • There is no limit to investing in the NPS scheme. You can invest in any way you want yearly, half-yearly, quarterly, or monthly.

  • Earlier, this scheme was only for the people living in India; later, it was made available for NRIs also. Its documentation process is quite simple. 


  • Government employees get fewer benefits in NPS as compared to other schemes.

  • Customers get only three partial withdrawals till the age of 60 years.

  • Its biggest drawback is that a person can have only one NPS account in his entire lifetime.

  • There is no guaranteed return in NPS. Since your money is invested in corporate bonds and equities, market volatility adversely affects the returns.


2.3 National Savings Certificate (NSC)

You can get the National Savings Certificate (NSC) by visiting your nearest post office. It is a fixed-income investment scheme in which there is minimal risk, and at the same time, you get fixed interest. It is such a savings bond the interest earned on it is tax-free. Customers are encouraged to invest in NSCs because of their tax exemption. Your investment would have matured after five years of investing in NSC.

This money scheme by government allows you to open a joint account. The minimum limit to invest in NSC is Rs.1000. The amount invested in it is not capped.

However, NIT investment up to Rs 1.5 lakh is eligible for tax deduction under section 80C of 1961. National Savings Certificate (NSC) pays you a fixed rate of 6.8% per annum.


  • NSC is a government scheme; hence it is a risk-free investment.

  • NSC provides you with the facility of nomination. That is, you can give the names of your family members in the nomination, and the nominee will be entitled to that amount in case of an accident.

  • A bank or post office can avail of a loan through an NSC certificate.

  • In this, the rate of interest does not change.


  • NSC does not provide an online facility.

  • NSC does not give you the option of reinvestment.


2.4 Atal Pension Yojana (APY) - Is this the Best Government Investment Plan with High Returns?

The Government of India launched Atal Pension Yojana (APY) in 2015. This program's primary goal is to support those who are economically vulnerable. In a way, APY acts as social security for the people working in the unorganized sectors by the government. It is a good savings investment plan for middle-class people, which can significantly help after retirement. The age limit to invest in Atal Pension Yojana (APY) is between 18 and 40 years. As APY starts giving pensions from 60, the minimum period to contribute is 20 years. Investment can start with very minimal money. Depending on the amount deposited, they will receive a monthly pension at the retirement of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000.


  • Your bank account is automatically debited directly from APY.

  • You are eligible for a guaranteed pension by investing in Atal Pension Yojana. You get a pension according to the amount of monthly investment.


  • Withdrawals before the time are not allowed.

  • You cannot invest in it after the age of 40.

2.5 Senior Citizen Savings Scheme (SCSS) - Money Scheme By Government 

One of the government programs that has been operating the best in recent years is the Senior Citizen Savings Scheme (SCSS). The government developed this scheme to enable senior citizens to lead a secure and independent life in retirement. This savings scheme is the first choice of investors because it is tax-free. All investment amounts in SCSS are eligible for income tax deduction under 80C. An investor can invest up to a maximum of Rs 1.5 lakh annually. The returns on it are also quite attractive. Presently, the Senior Citizen Savings Scheme (SCSS) offers an interest rate of 7.4% per annum. You can open an SCSS account in any post office or bank.


  • This scheme gives decent returns, around 7.4%- 9% per annum.

  • Your invested amount in SCSS matures after five years. Even after that, the maturity period can extend up to 3 years.

  • A minimum deposit of Rs 1000 is required for investors to participate in this scheme.

  • Premature withdrawal is allowed but with T&C.


  • A single or joint account may deposit a maximum of Rs 15 lakh into the SCSS.

  • Interest is taxable.

  • You can avail loan against Senior Citizen Savings Scheme (SCSS).

3. Conclusion 

Before investing in any Best Government Investment Schemes 2022 With High Returns, always remember whether your investment can fulfill your goals and dreams. You must exercise caution when selecting your investment strategy because one of your choices could get you into serious difficulty. Before investing in any Government Investment Scheme or Plan, you should do a thorough analysis of that scheme.

Frequently Asked Questions


Simply put, an investment scheme refers to a financial product that helps generate more wealth over some time. An investment scheme helps in meeting the future financial goals of the investor.



The Government of India has introduced many best government investment plans returns to encourage investors, some of which offer high interest.

  • Sukanya Samriddhi Yojana
  • Senior Citizen Savings Scheme (SCSS)
  • Atal Pension Yojana (APY)
  • National Savings Certificate (NSC)
  • Pradhan Mantri Jan Dhan Yojana (PMJDY)
  • Public Provident Fund (PPF)
  • Fixed Deposits (FDs)
  • Equity Linked Savings Scheme (ELSS)
  • Mutual Funds etc.

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