The year 2026 has been a bad year so far for investors who put parts of their earnings into the stock market either directly or through other investment instruments. The key domestic indices--Sensex and Nifty--fell over 12 per cent and 10 per cent, respectively, till date this year on the back of uncertain geopolitical situations ranging from US tariff threats at the beginning of the year and war in the Middle East since late February. 

Meanwhile, with the repo rate standing at 5.25 per cent after a few rounds of cuts by the Reserve Bank of India (RBI), the returns on deposits in fixed deposits are in the range of 6 to 7 per cent--top public sector and private banks. In such a situation, if you might be thinking of putting your money in safe and secure schemes while having a better return than FDs, then some government-backed schemes, including National Saving Certificate (NSC), PPF, and SSY, can be a better option. 

NSC would allow you to park your money for a minimum of 5 years. At the same time, PPF and SSY can be tools for you to accumulate a large corpus in a long-term investment set up with tax benefits. These schemes are government-backed, and they come with zero risk.

1. National Savings Certificate (NSC)

If your goal is to park your money for a minimum period of five years while enjoying a risk-free return more than fixed deposits, then the Post Office's National Savings Certificate (NSC) scheme can be a better choice for you. Currently, NSC offers an interest rate of 7.7%, which is higher than the return rates of most bank FDs of leading public and private sector banks. The good thing about NSC is that you can start investing with as little as Rs 1,000, and there is no maximum investment limit.

The maturity period is five years, and the scheme is available for Indian citizens only.

FD Vs NSC Calculation

Let's assume you have Rs 2 lakh of surplus money and you want to park it in a risk-free investment instrument. Meanwhile, you are confused whether you should go with bank FDs or NSC and where you should get more returns, then here's a calculation:

SSC- Investment- Rs 2 lakh, Rate - 7.7 per cent, Corpus At Maturity after 5 years- Rs 2,92,849 (Principal Money + a interest of Rs 92,849)

FD- Investment- Rs 2 lakh, Rate - 6.8 per cent (assumption), Corpus at Maturity after 5 years- Rs 2,80,188 (Principal Money + interest of Rs 80,188).

2. Public Provident Fund (PPF)

PPF is considered one of the most reliable risk-free investment schemes to accumulate a decent corpus in a long-term set-up, and that too with the benefits of tax-saving. People who plan for retirement or have a goal for their child's education or marriage generally opt to put money in the scheme.

The return rate for PPF is reviewed every quarter. Currently, the government offers an annual interest rate of 7.10 per cent. Investment journey with PPF can begin with a minimum investment of Rs 500 and a maximum of Rs 1.50 lakh in a year. The best part is, the money could be deposited either monthly, quarterly or even yearly.

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The maturity period of the scheme is 15 years. The final amount that you withdraw at maturity will be tax-free under 80c of the Income Tax Act.

PPF Investment Calculation: Let's assume you want to put Rs 5,000 monthly, which turns out to be Rs 60,000 yearly for 15 years. Then, at maturity at the current rate of 7.1 per cent, you will have Rs 13,56,070. To which, your investment would be Rs 7,50,00,0, and you would earn an interest of Rs 6,06,070.

3. Sukanya Samriddhi Yojana (SSY)

This government scheme is completely designed to accumulate a corpus for your daughter's future expenses--education, marriage--while enjoying a far better return than FDs and with tax-saving benefits.

Currently, the deposits in SSY attract a return of 8.20 per cent. The investment journey with the scheme can be started by investing as low as Rs 250 to Rs 1.50 lakh annually. The investment allows parents to claim a substantial tax exemption under Section 80C.

The eligibility to open an SSY account is that it can be opened for a girl child under 10 years of age. Your daughter would be the owner of this fund when she turns 21.