Post office savings schemes provides security of capital and interest thereon and are best suited for conservative investors. The popularity of Post office savings schemes can be contributed to the fact that it appealed to every section of the society, rich or poor.
The Government of India 8 per cent Savings Bonds, 2003 (taxable) scheme is another instrument suitable for investors seeking returns that are fixed and assured. GOI Savings Bonds may not be terrific investment option if you are looking for capital appreciation or a substantial margin over inflation.
National Saving Certificates (NSC) are a time-tested tax-saving instrument that combine adequate returns with high safety. This is the only scheme which gives tax benefits on the investment and the interest which is reinvested.
Public Provident Fund (PPF) is a savings-cum-tax-saving instrument. It also serves as a retirement-planning tool for many of those who do not have any structured pension plan covering them.
Small saving schemes are the most popular investment avenues among the general public. Safety, convenience, small investment and liquidity characterize these investments.