9 Best Section 80C Investments To Save Tax In India (2025)

If you’re like most salaried Indians, Section 80C planning turns into a March rush: you know the deduction cap is Rs 1.5 lakh (old tax regime), but deciding between ELSS, PPF, EPF, NPS, insurance, NSC or a 5‑year FD is confusing. Each option has trade‑offs on returns, risk, lock‑in and liquidity—and the wrong choice can lock up your money for years without serving your goals. Add myths (like “all insurance is good for tax”) and missed opportunities (like the extra Rs 50,000 under 80CCD(1B) for NPS), and it’s easy to leave money on the table.

This guide cuts the noise. We’ve shortlisted the 9 best Section 80C investments for FY 2025–26 and explain, for each: what it is, how it helps you save tax, typical returns, risk and lock‑in, who should choose it, and how to invest smartly. You’ll find clear, side‑by‑side guidance on ELSS, PPF, EPF/VPF, NPS (80CCD(1) + 80CCD(1B)), life insurance (term and ULIPs), NSC and 5‑year tax‑saving FD, SSY and SCSS. We’ll also show how an AI‑powered, SEBI‑registered, conflict‑free planner can tailor the right 80C mix to your goals and risk profile. Let’s start with a quick, conflict‑free way to plan your 80C bucket—and then compare each option one by one.

1. Invsify: AI-powered 80C planner (SEBI-registered, conflict-free)

Invsify brings a fee-only, SEBI-registered advisory model to your Section 80C investments. Our AI maps your goals and risk profile, scans your existing EPF, insurance and loan data, and then builds a tax-first, returns-smart 80C plan—backed by human experts on standby and a 30‑second callback for anything urgent.

What it is

An always-on, conversational wealth RM that personalizes your 80C bucket across ELSS, PPF, EPF/VPF, NSC/FD, SSY, SCSS and NPS. It unifies KYC, risk profiling, portfolio tracking, real‑time rebalancing nudges, and a hidden-fee calculator so you keep more of your returns.

How it helps you save tax

Invsify optimizes the Rs 1.5 lakh limit under Section 80C (available only in the old tax regime) and automatically factors in EPF, tuition fees, and home-loan principal so you don’t waste limit on low-yield choices. It also alerts you to:

80CCD(1) being counted within the Rs 1.5 lakh 80CCE cap.
The additional Rs 50,000 deduction under 80CCD(1B) for NPS Tier I.
Employer NPS under 80CCD(2), which sits outside the Rs 1.5 lakh cap. For 30% slab old-regime filers, you can save up to Rs 46,800 on Rs 1.5 lakh of eligible investments (subject to conditions).

Returns, risk and lock-in

Your returns depend on the mix you choose. The planner balances risk and liquidity by blending market-linked and fixed-income 80C options and makes lock-ins explicit, so you know what’s liquid and what’s not.

Option (80C/related)	Typical lock-in	Risk (per SERP)
ELSS	3 years	High
PPF	15 years	Low
EPF/VPF	Till retirement/withdrawal rules	Low–Medium
NSC	5 years	Low
5-year Tax-saving FD	5 years	Low
ULIP	5 years	Medium
SSY	Till 21 years (partial at 18)	Low
SCSS	5 years (extendable 3)	Low
NPS (80CCD)	Till 60 years	High

Who should choose this

Salaried earners who want to max 80C without March chaos.
Investors switching from commission-led products to conflict‑free advice.
Anyone needing guidance on stacking 80C with NPS (80CCD) and employer benefits cleanly.

How to invest smartly

Complete KYC and risk profiling; connect EPF passbook and existing policies.
Pick the old tax regime if 80C deductions suit you; the planner will show your break-even.
Auto-SIP ELSS through the year, not just in March; reserve fixed-income slots (PPF/NSC/FD) for stability.
If suitable, activate NPS Tier I to use 80CCD(1B); explore employer NPS under 80CCD(2).
Use one-tap employer declarations and proof packs with reminders before 31 March.

2. ELSS (equity-linked savings scheme)

ELSS is an equity mutual fund category that qualifies as a Section 80C investment. Your money is invested in stocks, so returns are market-linked and volatile, but the lock-in is only three years—significantly shorter than most other 80C options.

What it is

An equity-oriented mutual fund eligible under Section 80C. You can invest via lump sum or SIP; each SIP installment has its own three-year lock-in. ELSS aims for long-term growth by participating in equity markets.

How it helps you save tax

Under the old tax regime, you can claim up to Rs 1.5 lakh in a financial year across Section 80C (subject to the overall 80CCE cap). ELSS contributions count toward this limit; the new tax regime doesn’t allow 80C deductions.

ELSS fits within the Rs 1.5 lakh 80C ceiling; it does not get the separate Rs 50,000 available for NPS under 80CCD(1B).
SIPs into ELSS are also eligible for 80C, helping you spread investments through the year.

Returns, risk and lock-in

Being equity-led, ELSS carries higher risk and short-term volatility. ClearTax’s comparison shows ELSS with a three-year lock-in and “High” risk; it cites a historical 12%–15% return range, which is not guaranteed and depends on markets.

Lock-in: 3 years (shortest among major 80C options listed like PPF/NSC/FD/ULIP).
Risk: High; suitable only if you can tolerate equity swings.

Who should choose this

Choose ELSS if you’re in the old tax regime, want growth-oriented 80C exposure, and can handle market volatility. It suits salaried investors with a 5+ year horizon who already have stability from EPF/PPF and want to boost long-term returns.

How to invest smartly

Start early in the financial year and automate SIPs to avoid the March rush and average your cost. Stay invested beyond the three-year lock-in for better compounding potential, and pair ELSS with lower-risk 80C choices (PPF/EPF/NSC) to balance your overall risk. Keep your total 80C usage within Rs 1.5 lakh and avoid chasing last-year chart toppers; consistency beats timing.

3. Public Provident Fund (PPF)

PPF is the steady, government-backed anchor in your Section 80C investments. If ELSS is for growth, PPF is for stability. It helps salaried investors lock a part of their 80C limit into a low-risk, long-horizon pool that compounds quietly while cushioning portfolio volatility.

What it is

A long-term small savings scheme of the Government of India. You can contribute between Rs 500 and Rs 1.5 lakh per financial year, and the interest credited to your account is tax-free. The account runs for 15 years, making it a disciplined way to build a safe corpus.

How it helps you save tax

Contributions to PPF qualify under Section 80C (within the overall Rs 1.5 lakh limit available only in the old tax regime). Since the interest is tax-free, PPF improves your post-tax yield versus many taxable fixed-income choices. In the 30% slab (old regime), fully using Rs 1.5 lakh can save up to Rs 46,800 in taxes, subject to conditions.

Returns, risk and lock-in

PPF carries sovereign backing, so risk is low. The interest rate is government-notified; sources compare PPF at around 7.90% with a 15-year lock-in. Liquidity is limited versus ELSS or FDs, so treat it as long-term debt in your asset mix.

Feature	Indicative detail
Interest	Government-notified; example shown: 7.90%
Lock-in	15 years
Risk	Low (sovereign-backed)

Who should choose this

Pick PPF if you value capital safety, want predictable fixed-income alongside EPF, and can commit for 15 years. It suits conservative investors and salaried earners balancing equity-heavy 80C choices like ELSS with a stable core.

How to invest smartly

Set a yearly target early and automate monthly contributions to avoid a March lump sum. Coordinate your 80C usage—count EPF/insurance first, then allocate to PPF to stay within Rs 1.5 lakh. Use PPF as your core debt anchor; complement equity risk (ELSS/NPS equity) rather than replace it. Stick to the old tax regime only if the math favors you; otherwise, avoid locking money just for 80C.

4. Employees’ Provident Fund (EPF/VPF)

For most salaried Indians, EPF is the quiet workhorse inside Section 80C. A fixed slice of your salary is routed into a retirement corpus, and you can optionally top it up through Voluntary Provident Fund (VPF) to accelerate compounding without chasing market risk.

What it is

EPF is a statutory retirement scheme funded by employee and employer contributions. Your own EPF contribution qualifies under Section 80C; VPF is simply an extra, voluntary employee contribution routed to the same account. Both EPF and VPF contributions are eligible under 80C, while the employer’s share is tax-free but not claimable as an 80C deduction.

How it helps you save tax

Under the old tax regime, your employee contributions to EPF/VPF count toward the combined Section 80C limit of Rs 1.5 lakh (within 80CCE). The new tax regime doesn’t allow 80C deductions.

Employer’s EPF contribution is not deductible under 80C.
If you also invest in NPS, remember 80CCD(1) shares the same Rs 1.5 lakh ceiling, but 80CCD(1B) offers an additional Rs 50,000 exclusively for NPS Tier I.

Returns, risk and lock-in

EPF/VPF is a low-risk, fixed-income style allocation with interest credited annually and withdrawal rules oriented to retirement. Treat it as the core, stable debt pillar inside your 80C mix.

Feature	Indicative detail
Lock-in	Restricted withdrawals; designed for retirement
Risk	Low (fixed-income oriented)
Liquidity	Partial access only under specified conditions

Who should choose this

Salaried investors wanting a stable, automated 80C foundation.
Conservative profiles preferring predictable, fixed-income exposure over equity risk.
Those already covered by ELSS/PPF who want additional disciplined debt via payroll.

How to invest smartly

Check your payslip/Form 16 to see how much of 80C EPF already uses, then fill the gap.
Use VPF to reach your target if you prefer low-risk debt over locking money in NSC/FD.
Don’t count the employer’s EPF share toward 80C; it isn’t eligible.
Coordinate EPF/VPF with PPF and ELSS for a balanced 80C mix.
If your employer offers NPS, compare VPF top-ups with using the extra Rs 50,000 under 80CCD(1B) for NPS Tier I.

5. National Pension System (NPS) under 80CCD(1) and 80CCD(1B)

NPS complements your Section 80C investments with an extra tax lever dedicated to retirement. It’s best used to hit the Rs 2 lakh combined deduction potential while building a disciplined, long-horizon corpus.

What it is

A market-linked, retirement-focused account (Tier I) with contributions invested across asset classes and a lock-in till age 60. It’s designed for long-term accumulation rather than short-term liquidity.

How it helps you save tax

Under the old tax regime, NPS offers layered deductions recognized in law:

80CCD(1): Within the Rs 1.5 lakh 80CCE cap; limits are 10% of salary + DA (employees) and 20% of gross total income (self-employed).
80CCD(1B): Additional Rs 50,000 exclusively for NPS Tier I, over and above the Rs 1.5 lakh cap.
80CCD(2): Employer’s NPS contribution sits outside the Rs 1.5 lakh cap; up to 14% of salary + DA for Central Government employees and 10% for others.
Combined potential under 80C + 80CCC + 80CCD(1) + 80CCD(1B) = Rs 2,00,000.

Deductible under 80CCD(1) = min(your contribution, % limit, 80CCE balance)

Returns, risk and lock-in

NPS returns are market-linked. Clear comparisons peg typical returns around 8%–10% with “High” risk and a lock-in till age 60.

Feature	Indicative detail
Typical returns	8%–10% (market-linked; not guaranteed)
Risk	High
Lock-in	Till 60 years (Tier I)

Who should choose this

Salaried or self-employed with a long runway to retirement.
Old-regime filers who’ve maxed 80C and want the extra Rs 50,000 under 80CCD(1B).
Employees with access to employer NPS (80CCD(2)) to stack benefits outside the Rs 1.5 lakh cap.

How to invest smartly

Use Tier I for 80CCD(1B); Tier II doesn’t qualify.
Automate monthly contributions to avoid a March rush and smooth market entry.
First count EPF/PPF/insurance in your 80C bucket, then allocate to 80CCD(1) and finally top up 80CCD(1B).
If your employer offers NPS, enroll to capture 80CCD(2).
Balance NPS equity risk with stable anchors (EPF/PPF/NSC) in your overall 80C plan.

6. Life insurance: term plans and ULIPs

Life insurance sits inside Section 80C investments, but protection and returns work very differently across term plans and ULIPs. Get the cover right first (term), then consider ULIPs only if you want market-linked growth bundled with a five-year lock-in and can handle intermediate volatility.

What it is

Term insurance is a pure-risk cover that pays your nominees on death; there’s no investment component.
ULIPs (Unit Linked Insurance Plans) combine life cover with market-linked funds, offering growth potential plus limited flexibility within the policy.

How it helps you save tax

Premiums paid for policies on self, spouse, and children are eligible under Section 80C (within the overall Rs 1.5 lakh cap), available only in the old tax regime. HUFs can also claim life insurance premiums. Premiums for parents/parents‑in‑law don’t qualify. ULIPs also qualify under 80C; ELSS/NPS limits still apply under 80CCE, while NPS enjoys an extra Rs 50,000 under 80CCD(1B).

Returns, risk and lock-in

Clear comparisons indicate ULIPs have a 5‑year lock‑in with medium risk and an indicative 8%–10% return range (not guaranteed). Term plans have no investment return; they’re for protection.

Product	80C eligible	Lock-in	Risk/returns
Term insurance	Yes (old regime)	None (policy term applies)	No returns; pure protection
ULIP	Yes (old regime)	5 years	Medium risk; market-linked, indicative 8%–10%

Who should choose this

Term insurance: Anyone with dependents—make this your first rupee in 80C before chasing returns.
ULIP: Investors who want insurance + market exposure, accept a 5‑year lock-in, and prefer staying invested within one wrapper rather than juggling multiple products.

How to invest smartly

Prioritize adequate term cover (typically several times your annual income); don’t buy extra policies just to fill 80C.
Keep premiums for self/spouse/children; track the Rs 1.5 lakh 80C ceiling with EPF/PPF/ELSS already counted.
For ULIPs, commit beyond the 5‑year lock-in for a realistic chance at market-linked compounding; avoid frequent churn.
If growth is the primary goal, compare ULIPs with ELSS (3‑year lock-in, higher risk) and hold what fits your risk and liquidity needs under the old regime.

7. National Savings Certificate (NSC) and 5-year tax-saving FD

If you want “plain, safe, and predictable” inside your Section 80C investments, NSC and 5-year tax-saving FDs do the job. Both are fixed-income, low-risk choices with a 5-year lock-in, making them useful stabilizers around market-linked picks like ELSS or NPS.

What it is

NSC is a small-savings instrument backed by the government and issued via post offices. A 5-year tax-saving FD is a special fixed deposit from banks with a mandatory 5-year lock-in. Both target steady accrual rather than market-led growth.

How it helps you save tax

Investments in NSC and 5-year tax-saving FDs qualify under Section 80C, subject to the overall Rs 1.5 lakh cap (old tax regime only). For NSC, the interest reinvested for the first four years also qualifies for 80C, helping you utilize the limit more efficiently.

Returns, risk and lock-in

These are low-risk, fixed-income options with comparable lock-ins. Rates are indicative and can change; treat them as reference points rather than guarantees.

Product	Lock-in	Indicative interest	Risk
NSC	5 years	~7.90%	Low
5-year tax-saving FD	5 years	Up to ~8.40%	Low

Who should choose this

Conservative investors prioritizing capital safety over higher, market-linked returns.
Salaried earners who’ve already taken equity risk (ELSS/NPS) and want a stable 80C ballast.
Those who prefer simple, one-time investments with clear maturity.

How to invest smartly

Fill your 80C gap after accounting for EPF/insurance; avoid overshooting Rs 1.5 lakh.
Prefer NSC for sovereign comfort; use bank FDs if your bank offers competitive rates.
Start early in the year, avoid last-minute lump sums, and keep proof of investments for employer declarations and ITR.

8. Sukanya Samriddhi Yojana (SSY)

SSY is a purpose-built, government-backed option in your Section 80C investments to build a long-term, low-risk corpus for your daughter’s future. Think of it as the “set-and-forget” fixed-income pillar that complements market-linked choices like ELSS or NPS.

What it is

A small-savings account for a girl child below 10 years, with the guardian as depositor. You can open accounts for up to two girl children in a family. It’s designed for long-term needs like education or marriage with a hard lock-in.

How it helps you save tax

Contributions qualify under Section 80C within the overall Rs 1.5 lakh cap (available only in the old tax regime). Since 80C is shared across EPF/PPF/ELSS/NSC, plan SSY allocations after accounting for what’s already auto-filled by EPF and insurance.

Returns, risk and lock-in

SSY offers an administered, attractive rate and very low risk given sovereign backing. It enforces discipline via a long lock-in, with limited early access for education.

Feature	Indicative detail
Interest rate	~8.50% (indicative from comparisons)
Risk	Low (government-backed)
Lock-in	Till the girl turns 21; partial withdrawal permitted at 18

Who should choose this

Parents seeking a safe, goal-tied 80C bucket for a daughter, preferring stability over equity volatility. It fits conservative profiles and those balancing ELSS/NPS with fixed-income comfort.

How to invest smartly

Start early to maximize compounding across the lock-in and align deposits with education milestones.

Prioritize EPF/insurance usage, then apportion 80C to SSY to stay within Rs 1.5 lakh.
Treat SSY as the fixed-income core; let ELSS handle growth.
Keep proofs for employer declaration and ITR; avoid March-only lump sums by automating contributions.

9. Senior Citizen Savings Scheme (SCSS)

SCSS is the “sleep-well” choice in your Section 80C investments if you’re retired or nearing retirement. It’s a government-backed, fixed-income scheme built for capital safety and steady accrual, so you’re not forced to chase market returns at a life stage where stability matters most.

What it is

A small-savings scheme for senior citizens aged 60+. As per industry explanations, those taking VRS can become eligible from 55 years. It prioritizes safety and disciplined holding, and is designed as a retirement-friendly fixed‑income anchor.

How it helps you save tax

Contributions to SCSS qualify under Section 80C within the overall Rs 1.5 lakh limit, available only in the old tax regime. Coordinate SCSS with EPF/PPF/insurance already occupying your 80C bucket so you don’t overshoot the cap.

Returns, risk and lock-in

Comparisons put SCSS in the low-risk camp with a 5‑year term and an option to extend by 3 years, and show indicative rates around 8.60% (rates are administered and can change).

Feature	Indicative detail
Interest	~8.60% (administered)
Risk	Low (sovereign-backed)
Lock-in	5 years; extendable by 3 years

Who should choose this

Retirees and near-retirees needing stability over market volatility.
Families balancing equity-heavy 80C choices (ELSS/NPS) with a safe, fixed‑income core.
Anyone prioritizing predictable, government-backed accruals for essential expenses.

How to invest smartly

First total up EPF/insurance usage, then allocate to SCSS to stay within Rs 1.5 lakh.
Start early in the financial year; avoid March-only decisions.
Plan whether you’ll extend by 3 years to keep cash flows predictable around retirement goals.
Use SCSS as your fixed-income anchor and pair growth needs with ELSS only if your risk profile allows.

Key takeaways

Smart 80C planning isn’t about filling Rs 1.5 lakh at year‑end—it’s about aligning tax savings with your goals, risk, and liquidity. Use the old tax regime only if it wins on math; then stack growth (ELSS/NPS equity) with safe anchors (EPF/PPF/NSC/SCSS) and goal-based options like SSY. Count what’s auto-filled (EPF, insurance) before adding anything else.

Rs 1.5 lakh cap under 80C/80CCC/80CCD(1) applies only in the old regime.
NPS adds Rs 50,000 extra under 80CCD(1B); employer NPS under 80CCD(2) sits outside the 1.5 lakh cap.
ELSS: 3-year lock-in, high risk; best for long-term growth via SIPs.
PPF: low risk, 15-year lock-in; core fixed-income anchor.
EPF/VPF: automated, stable debt; employer EPF isn’t 80C-deductible.
NSC/5-year FD: low risk, 5-year lock-in; simple stabilizers.
SSY: for a daughter’s future; long lock-in with partial at 18.
SCSS: senior-friendly, 5 years (extendable 3); low risk.
Insurance: make term cover your first rupee; treat ULIPs as optional, 5-year lock-in.

Want conflict‑free, SEBI‑registered advice that optimizes 80C and the Rs 50,000 NPS edge? Build your plan with Invsify—connect EPF, right-size term cover, compare options, and auto-SIP the mix that fits your goals.