Senior Citizens Saving Scheme:

The Senior Citizens Savings Scheme tenure is of 5 years and it is one of the best tax saving option for retirees and also offers the highest interest rate amongst all other Post Office Schemes. However, this 5 year tenure can still be expanded to another 3 years. The interest is paid out in quarterly sessions on fixed dates, irrespective of when you have invested. But, there is an overall investment limit of 15 lakh per individual.

PPF And VPF:

Public Provident Fund still remains a good option for the conservative investor who doesn't mind earning less as long as the returns are assured. Opting for the Voluntary Provident Fund is a better choice as it offers the same interest rate and tax benefits as the Employees Provident Fund. Given the political implications of reducing the interest rate on the EPF, it is unlikely that the VPF rate will see a cut in the near future.

Read More: Tax Saving Options for High Net Worth Investors in 2016

Mutual Fund Industry's Asset Base Surges 21pct To 13.4 Lakh Cr In 2015