Thinking ऑफ़ टैक्स Saving Securely

there are few options

1) NSC -->this seems to be best as Rate of Interest (ROI) is 8.16% (Best) Compounded every Six Months . Actually ROI is 8% But as it is compounded Twice a year Effective
ROI will be 8.16% 10000-->16,010.32 Six year
Returns are Taxable but no TDS.
Cons : Money is Locked for Six Years. Can be broken after 3 years
http://www.tnsmallsavings.com/nsc.htm


2)PPF ---> 8 % money Locked for six years . one point is we can get loan of 25% of amount after three years.
http://www.alpbachat.org/ppf.htm

3)Bank FDS --> almost all banks give 7% or 7.5% compounded only . Only benefit is it for 5 years .
Cons : You cant get Loan on these FDs ....RETURNS are taxable with TDS

I am going for NSCs that is the Best option it seems .
in MFs iam not getting even 5% interest seeing last three years Performance .