When it comes to investments, we care so much about the capital protection rather than the high appreciation. Risk-free investment options are ideal for individuals who just want to save a part of their earning and sit back and relax without having to worry about its outcome.

We have put together 7 best investments options that can help you park your money and relax.

#1. Post office savings schemes

Any saving scheme offered by post office gives a better return and high rate of interest when compared to the schemes offered by banks and NBFCs. For individuals who look for safe investments, choosing a saving scheme from post office based on the need would be the right thing to do. Anyone can invest as low as Rs. 10 through the schemes which is impossible through other institutions. Following are the post office saving schemes and interest rate given against them.

·         Saving account – 4%

·         5 Year recurring deposit account – 6.9%

·         Time deposit account – up to 7.4%

·         Monthly income scheme account – 7.6%

·         Senior citizen saving scheme – 8.3%

·         15-year public provident fund – 7.6%

·         National saving certificate – 7.6%

·         Kisan Vikas Patra – 7.3%

·         Sukanya Samriddhi Account – 8.1%

Not many prefer opening a saving scheme from post office due to absence of online account management. However, the Government is working gradually to implement online system. This will help a lot of people to start their investments in post offices.

#2. Public Provident Fund (PPF)

PPF is one of the popular saving instruments since long time and preferred by many for its guaranteed returns and tax-free nature. It is a 15-year risk-free scheme and it can also be extended later. One can invest maximum of 12 times in a year. It is also recommended to deposit the money before 5th of every month to get the interest for the entire month. The interest rate generally ranges between 7% to 8.9%The maximum amount that can be deposited in a year is Rs. 1.5 lakhs and any excess amount will be taxable.

Premature withdrawal on a PPF account cannot be done until 5 years of completion. However, some emergencies and life-threatening illnesses will be considered for withdrawal.

#3. Fixed Deposits (FD)

Fixed deposit is a popular instrument for parking surplus amount of money for a certain period and get a guaranteed return at the date of maturity. It is totally risk-free and assures capital protection. One can hold the money from 1 month to any number of years in the bank. The interest rate starts from 6.4% and it can go up to 8% depending on the number of years held in the account. It offers generally a higher rate of interest than a savings account.

Premature withdrawal is allowed; however, you may have to pay a penalty for withdrawing. You can also get loans and credit cards against your fixed deposit.

#4. Recurring Deposit (RD)

A recurring deposit is a safe investment tool for individual who can make a regular deposit every month until a specific period to get a guaranteed return. The rate once fixed does not change throughout the entire tenure, thus assuring a confirmed estimated return. The interest rate generally ranges between 5.9% to 7.9% per annum. Premature withdrawal is not allowed; however, some banks do allow by levying a penalty.

#5. Risk-Free Mutual Funds

Mutual funds such as debt and GILT carry less risk and assures capital protection for the investor. This type of funds invests in government bonds, commercial papers, debentures, fixed securities etc. The investment could be for a short, mid or long-term depending on your objectives.

We may not be able to completely rule out the risk factor associated with mutual funds. However, choosing the plans that carry no risks, though with moderate returns, can be a good investment.

#6. Savings Account

Though having a savings account is an utmost necessity for managing your finance, this is should be your last option used for investment. The rate of interest offered on your savings is up to 4% per annum. It is an ideal place to save money and suitable for people who wants to make withdrawals any time of the year.


Before choosing any plan, think twice, compare your objectives and take an informed decision that would suit your credit needs in the future.