If you have some lump sum amount, Fixed Deposit (FD) is the obvious answer. However, considering your profile of a salaried employee, with no lump sum but a regular flow of salary, it is advisable to go for a Recurring Deposit (RD).

Let us understand more about RD. In RD one needs to deposit a fixed amount for a certain tenor. The RD gets its power from compounding. Whatever you have in your RD account, you get a quarterly interest on that amount, which gets added to your account and you get interest on that interest as well. This is called Power of Compounding.

Let us understand more with an example. Suppose you saved Rs. 10,000/- per month for 24 months and then made an FD of Rs. 2,40,000/-. Then for 24 months you get no interest or at most 4% interest, which you get in a saving Bank Account. However, if you opt for an RD of Rs. 10,000/- per month for 24 months at 7.65%, this amount will become 2,58,900/-! So, you can see the difference the RD can make. The difference increases with as the tenor increases.

Now coming to the interest rate part. I'll advise to for a small bank for FD. Rate offered on deposits (including FD/RD) by a Bank depends on its deposit base. For example, for a two year FD with SBI, you will get 7.25% p.a. interest. While for the same tenor, you will get 8.25% p.a. from newly opened Bandhan Bank and Ratnakar Bank.

So, this was about the zero risk (almost) ways of investment. But one can opt for higher rate of return with some risk. For that please read about Equity funds (most risky, highest rate of return), Mutual Funds (medium risk, medium rate of return) etc.

Hope it helps.