These FDs comes with a 5 year lock-in period, and the investment options that will be available after the new tax-code implementation will not be much flexible. ULIPs could be the only option available for you to invest money with a lock-in of 3 years, but as per the various studies, ULIPs do not give much return before 7-10 years.
As an update, direct tax code has been delayed by one year, i.e. 2012. So, you have an option to invest in Tax Saving Fixed Deposits for one more year, i.e. 2011. Click on the link to find the updates of new tax code for 2012.