Let us have a look at some of the alternatives to fixed deposits

'Disclaimer: This story is for informational purposes only and should not be taken as investment advice.'

As the financial year is coming to an end most of us are trying out new ways to save taxes. Let's have a look at some of the alternatives to fixed deposits.
 
Voluntary Provident Fund (VPF) 
The interest rate for VPF is 8.65 per cent which is same as EPF rate. You can invest in VPF as long as you want to and age is no limit here. The invested amount should depend on your salary.
VPF is very useful for accumulating long-term wealth which involves no risk. The interest earned from this is tax free and 80C benefit is also available.
 
Listed PSU bonds (Taxable) (Values taken for SBI Bond N5) 
The interest rate for PSU bonds is 8.55 per cent. There is no recommended age for the investment neither is there any limit to investment amount. You can invest in PSU bonds for eight years and it is useful for investors who need a regular income and are in lower tax brackets.
 
Senior Citizens' Savings Scheme (SCSS) 
Invest in SCSS for five years and the period can be extended by three more years and the interest rate is 8.3 per cent. The age for investment in SCSS is 60 years and 55 years for early retirees.
You can invest Rs 15 lakh in SCSS or the money received as a retirement benefit, whichever is lower. 80C benefit available in SCSS, but the interest is taxable. This is useful for senior citizens who need a regular income and are in lower tax brackets. 
 
Sukanya Samriddhi Yojana 
8.1 per cent is the interest rate in Sukanya Samriddhi Yojana. Deposits can be made until the age of 14; maturity at 21. The age limit is 10 years or less and the investment amount is Rs 1.5 lakh a year. 
This is useful for building long-term wealth for girl child without any risk and 80C benefit available; interest is also tax free.
 
Pradhan Mantri Vaya Vandana Yojana (PMVVY) 
The interest rate in PMVVY is 8 per cent and the investment tenure is 10 years. The age limit for this is 60 years. One can invest upto Rs 7.5 lakh per family (maximum pension of (Rs 5,000 per month).
In this case the pension is taxable and there is no 80C benefit. This is useful for senior citizens who need regular income & are in lower tax brackets. 
 
Public Provident Fund (PPF) 
The interest rate for PPF is 7.6 per cent. One can invest for 15 years and the tenure can be extended by block of 5 years. There is no restriction of age in this case and one can invest maximum of Rs 1.5 lakh per annum.
PPF is very useful for accumulation long term wealth and 80C benefit available in PPF; interest is tax-free.