Infrastructure Bonds

One of the safest forms of investments is in the Bonds. But now a days there are bonds which are issued from private players also. Now these have minimum of 5 years of lock in period. and a good rate of Interest. You can get anything between 7.5 to 8 % of interest. Again you can chose for annual payment of interest or can go for cumulative which means that your interest is again invested as principle.
And the most important part if that you can get Tax Benefits. And now for the most important point, this investment is Tax Beneficial over and above your 1 lakh invested through section 80ccc[ which is Insurance, NSC, PF , Housing Loan Principle paid etc].

The maximum amount for which you can get the tax benefit is for 20,000/-  Currently L&T has an investment for these bonds open. Though I assume there will be more coming in soon. I would definitely recommend this for investment.