How to earn high returns with just Rs 500 monthly in govt savings schemes

Invest just Rs 500 monthly and earn lakhs through safe, government-backed schemes. These offer great opportunities for low-risk investors.

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Best Investment Plans

Want to strengthen your financial future with small amounts? There are safe and reliable government schemes that can help. You can start investing Rs 500 per month and gradually build a fund worth lakhs without worrying about market risks.

These schemes are most suitable for salaried individuals, middle-class families, and those with lower incomes. Let's look at three government-backed savings plans that are considered the best low-risk options in 2025.

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Public Provident Fund

Public Provident Fund (PPF) is one of the most trusted long-term investment options in India. Managed by the government, PPF offers the dual benefits of security and tax savings. You can start with a minimum investment of Rs 500 per year, with a maximum limit of Rs 1.5 lakh per year.

The current interest rate is 7.1% (2025 rates) and the maturity period is 15 years. This scheme falls under the EEE tax category, meaning the investment, interest earned, and maturity amount are all tax-free. Investing Rs 500 monthly or Rs 6,000 annually will become Rs 1,62,728 in 15 years, where your total investment is Rs 90,000 and the interest is Rs 72,728.

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Sukanya Samriddhi Yojana

For those with a daughter under 10, Sukanya Samriddhi Yojana (SSY) is an excellent savings option. The current interest rate is 8.2%, which is one of the highest among small savings schemes. The minimum deposit starts at Rs 250, and the maturity period is 21 years or until the girl turns 18, whichever is earlier, for marriage or higher education.

Investing Rs 500 monthly or Rs 6,000 annually can grow to Rs 2,77,103 after 15 years, where your total investment is Rs 90,000 and the interest is Rs 1,87,103, making it a highly rewarding scheme.

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Post Office Recurring Deposit

If you prefer a shorter-term plan, the Post Office Recurring Deposit (RD) scheme is a simple and effective option. You can start with Rs 100 per month, and this scheme offers a 6.7% interest rate with a 5-year maturity period.

Investing Rs 500 monthly becomes Rs 30,000 in 5 years, and the maturity amount becomes Rs 35,681, providing safe returns with zero risk.

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Small Steps Towards Big Financial Goals

With these government-backed schemes, you don't need to worry about stock market fluctuations. Whether your goal is retirement savings, funding your daughter's education, or planning to buy a house, small investments like Rs 500 per month can help you achieve your dreams.

These schemes offer complete security, stability, and predictable growth, making them ideal for low-risk investors. Investment decisions should be made at your own discretion. It is essential to consult with a financial advisor.