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This piece of advice is trotted out once every year as the financial year end approaches. So here goes: it's best to plan your tax-saving investments earlier, and stagger some of the investments over the year. And if it's tax savings you seek, first count in the eligible payouts, on which tax deductions may be claimed to reduce the overall tax burden.
Equity Linked Savings Schemes (year end): These mutual funds invest in equities with a lock-in period of three years. It's a good option if you want to save tax as well as grow your money as they mostly deliver the highest returns among tax saving instruments. There is no tax if you withdraw the money after the lock-in period. In the past one year, the average return of ELSS has been around 42 per cent, while the three-year return has been around 15 per cent.
Unit Linked Insurance Plans (ULIPs): These insurance plans provide the benefit of both investing in equities and insurance. The lock-in period is five years and the returns depend on the performance of the underlying instruments. If the premium paid on the policy is less than 10 per cent of the sum assured for policies purchased after April 2012 and 20 per cent before that, the amount received on maturity is exempt from tax. For premium higher than 10 per cent, the entire amount is added to the income and taxed as per one's income tax slab.

Public Provident Fund (PPF): You can start by investing as little as Rs 500 a year and go up to Rs 1.5 lakh a year. The interest rate of the PPF depends on the yield of government securities of the same maturity. The lock-in period is 15 years and partial withdrawal is possible after seven years. The investment, gains and withdrawals are completely tax-free. It is a highly recommended tax saving product for those who fall in the 30 per cent tax bracket. The latest rate of interest on PPF is 7.6 per cent for the quarter ending March 31, 2018.
National Savings Certificate (NSC): It comes with a lock-in period of five years and is currently offering 7.6 per cent return. Similar to other small savings schemes, the rate of return depends on government securities of the same maturity. Interest is added to the income of the investor and is taxed, reducing the effective return of the instrument. The interest earned accumulates every year, and is paid at the time of maturity.
National Pension Scheme (NPS): Under Section 80C, contribution of up to Rs 1.5 lakh is eligible for deduction under this scheme. Besides, an additional contribution of Rs 50,000 under Section 80CCD (1B) can be claimed for deduction. In case of the NPS contribution made by the employer (up to 10 per cent of the salary), an employee can claim deduction under Section 80CCD(2). It comes with a lock-in period of 60 years of age. At maturity, only 60 per cent amount can be withdrawn and the rest has to be invested in annuity. Out of this 60 per cent, only 40 per cent is tax-free.
Employees' Provident Fund (EPF): Like PPF, EPF is also tax-free at all stages-investment, accumulation and withdrawal.
Sukanya Samriddhi Scheme: One can invest in the name of a girl child aged below 10 years and claim deduction of up to Rs 1.5 lakh. The account can be opened under the scheme for up to two girl children; in case of twins, it can be extended to the third child as well. The account is closed after 21 years while premature closure is allowed after 18 years under certain conditions. The minimum investment is Rs 1,000 per annum with interest rate being 8.1 per cent currently.
Bank FDs: You can claim deduction of up to Rs 1.5 lakh on investments in tax-saving FDs, deduction can be claimed for up to
Rs 1.5 lakh. These FDs offer lower return than normal bank deposits and have a lock-in of five years. The interest earned is taxable.