Small Savings schemes are designed to provide safe and attractive investment options to the public and at the same time mobilise resources for development. These schemes are operated through 1.54 lakh post offices in the country. Public Provident Fund Scheme is also operated from 8000 branches of public sector banks in addition to the post offices. Deposit Schemes for retiring employees are operated through selected branches of public sector banks only.

Saving is closely related to physical investment, in that the former provides a source of funds for the latter. By not using income to buy consumer goods and services, it is possible for resources to instead be invested by being used to produce fixed capital, such as factories and machinery.