Savings are very important as a source of funds for development expenditure.  They are very critical to the health of an economy.  The Government of India has many savings schemes for all brackets of society.  The salient features of the Government Savings Schemes are: Risk free investment, higher interest rates, nomination facility etc. The principal aim of small savings is to use the money generated for development schemes of the state.  These savings schemes are very popular among the common people as they provide higher returns and low risk. The Post Office Savings schemes are some of the most popular of small investment schemes as they are safe, simple and easily accessible.  One such scheme is the Public Provident Fund.  This scheme is easily available through over eight thousand post offices and public sector banks.  A Public Provident Fund must be in the name of the holder or a minor of whom he is a guardian.  The maturity period is fifteen years.  The lower deposit limit is Rs 500 and the upper is Rs 70,000 per financial year.  Loans up to 40% of current balance can be taken against the fund.  The returns on this scheme are completely safe and exempt from tax.