Post job tax savings for senior citizen

Example

Ram is working at a bank, and is about to retire. He will be 60 years of age.

Ram is getting 35 lakhs of onetime payment (gratuity and PF) by the bank and a yearly pension of Rs.300000

Now he wants to invest the same amount of 35 lakhs in such a way that the yearly tax is minimum.

His suggestion

Invest 35 lakhs in fixed deposit to earn 350000 per annum

So his total income will be 650000 and as per Ay 15-16 tax slab

And deduction of 80c =PF Rs.150000.

Tax on Rs.500000 will be 18540

So how can he save tax by any other means?????