If you’re a youngster starting out in your career, your life will be very exciting and thrilling. You’ll work for yourself, earn money, and try to enjoy life in the present. However, just earning money and working is not enough. It is also important to save and invest your money properly. If you start saving money at an early age, even small amounts of money can generate considerable long-term wealth.
When it comes to savings, there are a lot of savings plans you can invest in to grow your money. This post will discuss some of the best savings plans of 2025 that will make your future safe and secure.
Top 7 Savings Plans to Invest Money in 2025
A savings plan is one of the easiest methods of saving for the future. It makes you disciplined financially and ensures security. If you’re a working professional in your initial years and want to save money, then start early. Here are some of the best options:
1. Public Provident Fund (PPF)
Public Provident Fund is one of the most widely used savings plans. It is secure because it has government backing. You can begin with a minimum of ₹500 annually. The lock-in period is 15 years, but you can make partial withdrawals after 7 years.
The largest advantage of PPF is that it is tax-free. Your investment, interest earned, and the maturity amount are not taxed. Hence, it is one of the safest investment options in India for young professionals who wish to create a retirement corpus.
2. National Pension System (NPS)
The National Pension System is an age-related savings scheme. It allows you to invest in a combination of equity, government securities, and fixed deposits. You have the freedom to design your own combination or leave it to fund managers.
NPS has two components – Tier I and Tier II. Tier I is compulsory and for a retirement corpus. Tier II is voluntary and provides you with flexible withdrawals. The greatest benefit of NPS is the additional tax deduction of up to ₹50,000 under Section 80CCD(1B). For working professionals, this is a good starting point for creating a retirement corpus while saving a lot of money in taxes.
3. Employee Provident Fund (EPF)
If you are employed with a company, chances are you already have an EPF account. Your employer and you contribute some of your salary to it every month. It earns interest and increases over time.
EPF is one of the easiest ways to save unintentionally. You can even withdraw the money in certain situations, such as when you want to buy a house or medical exigencies. As it is automatic and mandatory for all workers, it is a strong and stable savings plan.
4. Fixed Deposits (FDs)
Fixed Deposits are the most secure savings plan. They are easy, straightforward, and well understood. You put money in a bank for a specific period of time, and you get returns at a fixed rate of interest.
For working professionals, FDs are a great option if they are looking for safety and guaranteed returns. They don’t have a high growth rate, as in the case of equity, but they are a good pick for balancing your savings.
6. Equity Mutual Funds through SIPs
For young professionals, equity mutual funds are a powerful weapon for building money. You can invest in the form of SIPs (Systematic Investment Plans), where you invest a fixed amount of money every month.
Equity mutual funds also involve risk, but as you are young, you can minimise the market fluctuations with time. Mutual funds have yielded much higher returns compared to FDs or RDs in the long run. If you start early, even small SIPs will translate into a large amount of money with compounding power.
7. Life Insurance Savings Plans
A lot of life insurance companies offer savings plans where you receive both insurance coverage and guaranteed returns. They save you money for the future and also secure your family.
Although the returns are not high when compared with equity, the dual benefits of insurance and savings make them an appropriate choice for those who need security and safety.
Final Thoughts
In 2025, it’s not about how much money you earn. It is a matter of how cleverly you invest whatever you have. For young working professionals, 2025 has many savings options. You can opt for the no-risk ones, such as PPF, EPF, or FDs. You can also experiment with the growth options, such as equity mutual funds via SIPs. And if you want a more balanced investment option, you can opt for NPS or life insurance savings plans.
The most important thing is to start early. Even if you save a little bit of money every month, it will grow into a gigantic corpus in the future. Learn the culture of saving early, be disciplined, and let time and compounding do the rest.
