PPF

There are many avenues for investments which gives tax saving also.

The foremost among all which I would suggest is Public Provident Fund (PPF) because of its least risk and safety.

Every salaried person should have this; not only for his/her tax benefit, but also for future saving. This account is opened by all public sector banks and some private banks also. One can deposit a minimum of Rs.500/- and maximum of Rs.1.50 lakhs and get tax benefit under Income Tax Act - Section 80C. This can be opened not only by the salaried persons but also by any citizen of India as a saving measure. The unique feature of this account is that no court can attach the money deposited in this account. The duration of the account is 15 years which can be extended by a block of five years. One can withdraw some portion of the savings after five years of opening the account. The withdrawal amount is exempted from tax also. The rate of interest is decided every year by the Government of India. The rate of interest may be less, but considering the tax benefit and other advantages, this investments tops in the list of investments one must have.

One must ensure to deposit the amount on or before 5th of the month to get the benefit of interest computation in same month, otherwise it will be considered in the next month only.

First spending of the month must be saving.

Save before Spending.