DCB Bank and Yes Bank offer the best interest rates on tax-saving deposits Start your tax saving investments in April for the new financial year 2021-22, so that you don’t have to run around searching for investment avenues later. The tax planning decisions should be taken wisely considering your financial goals. With the second wave of COVID-19 pandemic and mini-lockdowns being announced in some states of India, the equity market is volatile. In this situation investments in equity linked savings scheme (ELSS) for tax-saving seems risky for risk-averse investors. An investment in five-year tax-saving fixed deposits (FDs) offers relief to such investors in this scenario. Also, investors prefer FDs as returns are assured. Those in the lower tax brackets find bank FDs more attractive. By investing in these FDs you can avail of the tax benefit available under section 80C of the Income Tax Act. Investments up to Rs 1.5 lakh can be done in a financial year. Tax-saving FDs have a lock-in period of five years and premature withdrawals are not allowed.