Tax-saving investments are a great way for beginners to reduce their taxable income while building wealth for the future. With various options available, it’s important to choose investments that align with your financial goals, risk appetite, and investment horizon. In 2025, tax-saving opportunities remain abundant, offering benefits such as deductions under Section 80C, tax-free returns, and long-term growth potential.
Let’s now explore the top 5 tax-saving investments ideal for beginners, helping you make informed decisions to maximize savings and secure financial stability. Whether you’re just starting your investment journey or looking for tax-efficient options, these choices will set you on the right path.
National Saving Certificate or NSC is a scheme that gives us a guaranteed return of around 7.7% rate of interest. This scheme is a great deal for the risk-free investors who are looking for safe growth with the benefit of tax concession. NSC is typically a lock-in period system with 5 5-year lock-in, and this can be used under section 80c for deductions up to 1.5 Lakhs.
NPS or National Pension Scheme is a retirement savings scheme of government and private employees. This scheme is tax-exempt under section 80C to 1.5 lakh with tax deduction of 50,000 under section 80CCD. This is the best saving scheme for beginners who are planning to save for the long term with tax exemption.
Public Provident Fund or PPF is a long-term saving scheme for beginners who are planning to invest regularly. In this saving scheme, it has a 15-year lock-in period, which also offers investors to invest 1.5 lakh as the maximum limit under section 80C.
This is the perfect scheme to save money for your grandparents. This scheme is designed for the old citizens over 60 years of age. This is the highest savings scheme with 8.2% annual interest. In this scheme, investors can invest a maximum of 30 lakhs under section 80C of the tax-free. This is the best saving investment for your grandparents and older citizens.
In addition to PPF, investors can claim deductions of up to Rs 1.5 lakh every fiscal year through the Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), and Post Office Time Deposit (POTD) under section 80C of the Income Tax Act. The government makes quarterly revisions to the interest rates on these schemes.
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