Before answering this question, a few things more need to be ascertained -
1. What is your age right now?
2. Are you married? - if yes then do you have kids (and their ages) and if not married then when do you intend to.
3. Do you own the house that you stay in or are you staying in rented accomodation?
Since the above information is not available, I will try to give a general reply.
1. First and fore most is to have life insurance. That is the most important things and you should have a life insurance policy where the insurance cover is at least 4 times your current annual income. Since you are a salaried person I am assuming that you already have it and this money is surplus after that.
2. Assuming that you are at least 15 years away from retirement, you should put 1000 - 1500 out of this surplus income every month into the Systematic Investment Plan of a good equity mutual fund. If you are under the age of 30 then this can even be 2000-2500 rupees per month. You should choose a well diversified mutual fund having a good track record and - most importantly - invest every month regularly (through an ECS mechanism on your bank account) and for the next 10 - 15 years. Donot even think of putting money into the stock market directly through a broker at the current savings level. Rather stick to a good mutual fund and do monthly SIP. While doing this donot be swayed by the rise and fall of the stock market just keep investing regularly every month. That is what will build wealth in the long term for you. In the long term equities will give you the best return.
3. If you donot own the house that you live in then you should look to purchase a house by taking a home loan. The savings on rental that you will make, the tax benefits and this surplus income (over and above what is invested in point 2 above) will allow you to service the EMI of the home loan and after some time you will have an owned house of your own. That will give you the best security for a retired life. If you already own a house then you can even increase your contribution to SIP mentioned in point 2 to 2500 per month.
4. What is left after points 2 and 3 should be kept in FDs with banks. You can open a recurring deposit and look for the best rate of interest. That will help you to meet your cash requirements when you have them. You can even invest in a debt mutual fund scheme which gives a decent return and the good part is that there is no tax if invested for one year - unlike FDs.