Money lying in your saving bank accounts or cash stashed at home is much like a stunted tree of notes, which either grows abysmally or doesn’t bear fruits of returns at all. The old adage ‘Money makes Money’ holds true in this time and age too, and a plethora of options are available depending upon your risk acumen. Most importantly, the common man wants to capitalize his money in those investment instruments on which s/he can claim tax-deductions every year.

While market-linked investments yield attractive returns than any fixed deposit or like-wise investment; the volatility of markets is something that shoos away a large chunk of the salaried class. If you too are an advocate of fixed returns and zero-risk investments, then here are three saving schemes that can fetch you good returns besides saving you taxes, let’s take a look:

1.EPF/VPF

The contribution to Employee Provident Fund aka EPF is one of the safest way to secure 8%+ return on investment, year on year, along with the benefit of compounding. Though every employee is required to invest 12% of his/her Basic salary in EPF, you can expand your contribution up to 100% of your Basic Salary + DA via Voluntary Provident Fund (VPF) and see your money growing at a larger pace.

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2.PPF

Public Provident Fund or PPF is yet another investment option that earns 8% interest which is compounded annually. Your money is parked for a span of 15 years in a PPF. Mandatorily, you need to contribute once every year for 15 years and the options of withdrawal are limited. However, as per money market trends, when you are game for long term investment, then a bit of risk taking in equity can earn you huge returns in the long run. But then the perk that interest earned during 15 years in PPF is completely tax-free cannot be ignored.

3.Post Office Savings Schemes

There are various Post Office Savings Schemes that offer you 7%+ interest annually and the beauty of these schemes is that the interest is compounded quarterly. You can either invest a lumpsum amount for 1, 2, 3 or 5 years via Post Office Time Deposit Account (TD) or invest monthly via 5-Year Post Office Recurring Deposit Account (RD).

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