Post office schemes
This is the most popular saving schemes which generally offer higher interest rate than that of banks.
The interest rates on SSS are pegged to the interest rates of government securities of similar maturity and are revised quarterly.
PPF is a good long-term option as not only the income as well as principal is guaranteed. It falls under exempt, exempt and exempt category, where the investment, the income as well as the maturity proceeds are tax-free. There are other SSS such as national savings certificate, which is currently offering an interest rate of 7.9 per cent and is also qualified for tax breaks under section 80-C.