Indians are the most efficient when it comes to saving money. We are always open to option that can benefit us by offering profit or save tax. The government has introduced a lot of schemes to help small investors with the same but knowing the best of available options can minimize risk and increase the savings done. But these investments should not mean getting your money blocked. Therefore, choosing the right investment option is crucial. Some of the popular tax-efficient investment options are as follows:

1. PPF: PPF is a tax-free investment scheme by Indian government. It lets you earn tax-free returns for a maximum investment of Rs. 1,50,000 per annum. The shortest investment period is of 15 years to avail the benefits and can be increased in blocks of 5 years. The current interest rate for PPF is 8.10% and is free of any deduction possible.
2. Arbitrage funds: Arbitrage funds are liquid mutual funds that offer an interest rate of 8% after tax-deduction. The minimum period for holding the investment should be 1 year, in order to avail the tax-exemption. Also, investors need to be sure that their money is being invested in pure arbitrage funds and not arbitrage plus funds which involves a higher-risk on returns. Confirming the same with your portfolio manager is advisable.
3. FD: Fixed deposits are an age-old method of earning profit and tax-exemption. A relief of up to Rs.1.5 lacs is offered to the investor, exceeding which a TDS from payer’s end is chargeable. Also, the minimum duration for the FD is 5 years in order to avail tax-exemption. It is a good investment option for senior citizens who do not want to take risk and want specified returns. The procedure for making a FD has been made online and now investors can save themselves from standing in the long queue to make an investment.
4. National Savings Certificate: Postal NSC is an effective method to get tax rebate without any fuss. Any investment made for a minimum period of 5 years makes you eligible for a tax-exemption of up to Rs.1, 00, 000. NSC offers you an interest rate of 8.4% for 5 year investment and 8.7% for 10-year investment. However, one must confirm if the gains meet your financial goals.
5. NPS Account: An annual investment of up to Rs.50, 000 in an NPS account can get you an overall tax exemption of up to Rs.1.5 lacs under section 80 C. It also offers long-term facility of monthly pension which is taxable and the minimum investment period is 15years. But for people looking for saving tax, this is an efficient way to invest and grow their money without risking it.
6. Life Insurance: Investing is insurance plans is another classic method for seeking tax-exemption of up to Rs. 1lac under section 80C. The benefit of investing in an insurance plan is that it provides you long-term security and considerable returns. There are different types of life insurance plans available in the market like term plan, money back, Ulips etc and can be chosen from depending upon your financial goals and period of investment.

There are several other schemes like SIP, monthly income schemes, recurring deposits, liquid plus funds, Real Estate investments available to grow your money. But the right option can be chosen by deciding upon your goals and investment plan. Indian government offers several specific schemes for senior citizens, home loans, daughters of less than 10 year of age to save on tax. You can also make an investment after choosing from the detailed options and making sure that enough money is available or accessible, in urgency.