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Prepayment of a Home Loan OR Fixed Deposit and avail tax benefit on Principal+Interest?

Hi,

I am new to this forum but have referred useful topics in this forum before applying for a Home Loan. I need your advise on my below mentioned thought.

I have taken a Home Loan fron HDFC Ltd. My next disbursement to builder for Rs. 3 Lac is due on Jan end. My question is – What will be more beneficial to me i.e. to do a Fixed Deposit of this 3 Lac amount and to claim tax benefit (Interest+Principal) on the disbursed amount by the bank OR Should I pay this amount from my own resources

Please advise.

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