PPF is a long-term small savings scheme introduced by the Government. Individuals can open a PPF account at the post office or the nearest bank. The investors have to deposit a certain amount regularly into the PPF account. The accumulated fund and the interests earned will be provided as the maturity benefit at the end of the policy tenure.
 

• Interest rate - 7.1%
• Lock-in period - 15 years. The investment period can be extended in a block of 5 years.
• Minimum investment - ₹500
• Maximum investment - ₹1.5 Lakh
• Taxation - The amount deposited annually, interest earned, and maturity returns qualify for the tax deductions and exemptions benefit.

NSC is a government savings scheme that provides guaranteed returns. The interest is compounded annually and payable at the end of the policy tenure. It is a small savings scheme available at any of the post office branches for investment.
 

• Interest rate - 6.8% per annum
• Lock-in period - 5 years
• Minimum investment - ₹100
• Maximum investment - Not defined.
• Taxation - The investment made in the NSC qualifies for the tax deduction under Section 80C. And the interest earned is taxed as per the income tax slab. However, if the interest is reinvested, it qualifies for the tax deduction under Section 80C within the applicable limit.

Senior Citizens Savings Scheme is a financial instrument exclusively for senior citizens who want to invest their retirement funds. However, individuals between 55 and 60 years who opt for early retirement can also invest in these saving schemes within one month of receiving their retirement benefits. The interest earned from the SCSS will be credited to the investor's savings account maintained with the same post office.
 

• Interest rate - 7.4% per annum
• Lock-in period - 5 years. The investment period can be extended for 3 years.
• Minimum investment - ₹1000
• Maximum investment - ₹15 Lakh
• Taxation - The amount deposited qualifies for the deduction benefits under Section 80C. And the interest earned is taxable. However, senior citizens can claim a deduction of up to ₹50,000 under Section 80TTB for the returns credited under this scheme.

The Post Office Monthly Income Scheme is a money savings scheme that provides a regular income. The account holder will receive a regular income based on the interest credited to the savings account maintained with the post office. It applies to joint account holders of up to three members and a maximum of up to ₹9 Lakh investment.
 

• Interest rate - 6.6%
• Minimum investment - ₹1500
• Maximum investment - ₹4.5 Lakh
• Taxation - The investment made in this scheme and the interests earned do not qualify for the tax deduction or exemption benefits.

It is a small savings scheme with a fixed rate for conservative investors. Investors can approach investing in the scheme at the nearest post office. The KVP offers guaranteed returns and the premature encashment option after completing two and half years of investment. In addition, the investment certificate can be used as collateral to get loans from banks.
 

• Interest rate - 6.9%
• Investment period - 124 months
• Minimum investment - ₹1000
• Maximum investment - Not defined
• Taxation - The investment made, and the returns earned will not qualify for the tax deduction and exemption benefits.

The Sukanya Samriddhi Yojana is one of the best saving schemes in India to secure the life of girl children. It can be opened by parents with girl children less than 10 years of age. Parents can open up to two accounts, one for each girl child. Partial withdrawal of up to 50% of the balance is applicable for the child's higher education after she attains the age of 18.
 

• Interest rate - 7.6%
• Investment tenure - 21 years from the date of opening the account or after attaining the age of 18 when the girl child gets married. However, the parents must contribute to the account for 15 years.
• Minimum investment - ₹250
• Maximum investment - ₹1.5 Lakh
• Taxation - Investment in these money-saving schemes will qualify for the tax deduction of up to ₹1.5 Lakh under Section 80C, and the interests earned are tax-exempt.

The NPS is a government savings scheme for Central and State Government employees and employees in the organised and unorganised sectors. The contribution to this scheme has to be made by the employees and the employers equally. The contribution is 10% of the salary for other employees and 14% for Government employees. When the account holder retires, he can withdraw up to 60% of the accumulated fund. The remaining 40% of the fund should be invested in an annuity plan for a monthly income after retirement.
 

• Interest rate - 9% to 12% per annum
• Investment period - Until 60 years of age
• Minimum investment - ₹1000
• Maximum investment - Not defined
• Taxation - The amount invested will qualify for the tax deduction under Section 80C. In addition, individuals can increase their self-contribution and claim an additional deduction benefit of up to ₹50,000. 60% of the funds withdrawn after retirement are tax-exempt. However, the annual income received post-retirement is taxable based on the income tax slab. 

It is a Government savings scheme introduced for the welfare of the weaker section of society. Individuals between 18 and 40 years of age can apply for this scheme. The contribution to this scheme is based on the monthly pension required. Therefore, subscribers must analyse their requirements and invest in this scheme. The minimum and maximum pension applicable are ₹1000 and ₹5000 upon attaining the age of 60 years.
 

• Investment tenure - 20 years
• Minimum pension - ₹1000
• Maximum pension -₹5000
• Taxation - The investment and the returns are not taxable.
   

The Government will contribute 50% of the annual premium paid by the subscribers or ₹1000 per annum, whichever is lower. The co-contribution is applicable for 5 years if the scheme is subscribed between 1st June 2015 and 31st December 2015. Furthermore, the Government contribution is applicable if the subscribers are not taxpayers and do not have a statutory savings scheme.

EPF is a savings scheme in India operated based on the EPFO guidelines for long-term retirement benefits. It applies to salaried individuals. The employees and employers must contribute 12% of the employee's monthly basic salary and dearness allowance up to ₹15000 to the Provident Fund account. The contribution to the EPF is reduced to 10% for non-government organizations.
 

• Interest rate - 8.1%
• Lock-in period - 5 years
• Investment tenure - Until retirement
• Taxation - The employee’s contribution qualifies for tax deduction under Section 80C, and the employer’s contribution is taxable if the total contribution to NPS, EPF or superannuation fund exceeds ₹7.5 Lakh. Furthermore, the interest credited on employee contributions made above ₹2.5 Lakh is taxable.

Voluntary Retirement Fund refers to an increase in the employees' contribution to their provident fund account. The contribution is higher than the 12% contribution by an employee towards their EPF. The maximum contribution can be 100% of their basic salary and dearness allowance.
 

• Interest rate - 8.1%
• Investment tenure - 5 years from when the contribution starts
• Minimum investment - Above 12% of the EPF contribution
• Maximum investment - Up to 100% of the basic salary and dearness allowance
• Taxation - The contribution, interest earned, and maturity returns qualify for the tax deduction and exemption benefit.

The Post Office Savings Schemes provide various options that provide guaranteed returns. Investors can choose the best savings schemes based on their financial needs, return on investment and investment tenure. The risks involved in the financial products offered by India Post are extremely less or negligible. Some of the popular savings’ schemes offered at the post offices are:
 

• Post Office Savings Account
• Senior Citizens Savings Scheme Account
• National Savings Certificate Account
• Sukanya Samriddhi Account
• Public Provident Fund Account
• Kisan Vikas Patra Account
• National Savings Time Deposit Account
• National Savings Recurring Deposit Account
• National Savings Monthly Income Account

Small savings schemes are financial instruments that help individuals achieve their financial goals over a certain period. It helps accumulate funds based on a regular investment and the interests earned. The interest rates are revised by the Government every quarter or annually. Some of the common small savings’ schemes are Public Provident Fund, Senior Citizen Savings Scheme, Sukanya Samriddhi Yojana, National Savings Certificate, etc.,

Senior citizens prefer investing in savings schemes that provide guaranteed returns and receive a regular income after retirement. Some of the popular saving schemes for senior citizens are: 

• Senior Citizens Savings Scheme
• Bank Fixed Deposits
• Post Office Monthly Income Scheme
• Equity Linked Savings Scheme (for growth if risks can be affordable to a certain extent)
• National Pension Scheme

The interest rates are not fixed for the savings schemes. The Government will revise it timely, either every quarter or annually, based on the type of savings scheme.

A savings plan can be created based on the following steps:

• Make a monthly budget accommodating routine expense such as groceries, travel, clothing, etc.,
• Set aside a portion of your income to manage emergencies and invest in savings schemes.
• Identify the short-term and long-term financial goals.
• Compare and find the best savings schemes to help accomplish your future financial goals.
• Create a savings plan by allocating a portion of your income to the chosen savings schemes for the long term.
• Revise the income invested timely based on the increase in the income.

The Fixed Deposit Double Scheme offered by banking financial institutions is a savings scheme that doubles the money invested based on the interests earned. It requires the investors to deposit a particular sum for a fixed period.

An employee savings plan is a savings scheme wherein the employees contribute to a fund for future financial or retirement needs managed by the employer.

Monthly income savings schemes allow accumulating funds over the long term and investing the returns in an annuity plan to receive a regular income or investing a lump sum or retirement benefits for immediate regular income.

Some of the most common post office savings schemes are:

• Senior Citizens Savings Scheme
• Public Provident Fund
• National Savings Certificate
• Kisan Vikas Patra
• Sukanya Samriddhi Yojana

Some of the saving schemes that provide a higher interest rate are:

• Senior citizens savings scheme
• Employee Provident Fund
• National Pension Scheme
• Sukanya Samriddhi Yojana
• Public Provident Fund

Savings schemes are considered safe investment options because the Government majorly regulates them. Therefore, the chances of default are negligible.

The interest earned and reinvested qualifies for the tax deduction up to the Section 80C limit. Upon maturity, the returns are taxable based on the income tax slab.

PPF helps investors accumulate a certain amount periodically over the long term and earn interest during the investment period. It is a safe investment option for retirement needs. On the other hand, the ELSS is a mutual fund scheme that provides market-linked returns based on the amount invested. However, there exists a risk factor considering the volatile market conditions. The better investment for an individual among the two will be based on the investment objectives, affordability, and risk profile.