After the Bank Fixed Deposit Option…the most commonly used option is Small Savings Option or Post office savings Schemes. Even a maid today knows about small savings like national savings certificate as many of them go invest there.
For our purpose small saving fund is administered by the government of India. You go to a post office with cash or with your chequebook and you can choose any of the below & invest.
1. National Savings Certificate – Currently NSC is offers 8% interest rates. The NSC is a period of 5 years. If you invest 10,000, at the end of it you will get 14,693 back.
2. Kisan Vikas Patra – Currently, money doubles in 112 months, – 9.3 years which works out to 7.7% of interest.
3. PPF – Public provident fund– Interest rate is 8% currently. The investment is for 15 years but you can access some funds partially after 7 years.
4. Senior Citizen Savings Scheme – For people above 60 years of age,currently you get 8.7% as interest. Maximum investment is 15 lacs.
There are a bunch of other schemes like time deposit, recurring deposit which the post office offers for you to invest.
Details of the schemes can be accessed at..
https://www.indiapost.gov.in/Financial/Pages/Content/Post-Office-Saving-Schemes.aspx.
The important thing to note is that the rate of interest is changed by government from time to time. These are super safe schemes as essentially you are giving your money to the government and they are giving you the interest to rent your money.
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