India Cements: An investment in the one- and two-year options can be considered. The rates of 8 per cent and 8.5 per cent are attractive compared to what is on offer from a host of other companies. The risks are, however, higher as the company is still in the process of cutting its losses. The improvement in price levels in the southern market over the past few months is likely to lead to a turnaround. If the company manages to raise equity in line with its plans, it would enhance the comfort level for investors in its fixed-deposit programme. The cumulative option and the three- year option can be avoided, as the incremental returns do not compensate for the higher risk element.

Cholamandalam Investment: Investment in the one-year fixed deposit programme of Cholamandalam Investment and Finance Company can be considered. The company offers 6 per cent with interest being paid either quarterly or annually. For monthly interest payments, the minimum period of investment is three years which, however, can be avoided. Cholamandalam is one of the safer investment options in the NBFC arena. The rate of interest is also attractive compared to other investment options such as bank term deposit and is only 0.25 percentage points lower than that of the Post-Office Term Deposit. Premature withdrawals before three months are not allowed. Withdrawals after that also suffer penalty in the form of a reduction in the contracted interest. For withdrawals between three and 6 months, no interest would be paid. For withdrawals after six months, interest paid will be only 4.5 per cent.

Television Eighteen: An investment may be considered in the fixed deposit programme of Television Eighteen. The company offers an FD for a one-year period. The interest rate of 9 per cent on offer appears attractive, as does the 9.5 per cent on offer for senior citizens. This rate is one of the higher rates on offer and appears to compensate for the higher risks involved with the company's operations. But investors should invest only a part of the funds set apart for investment in fixed-income options, perhaps not more than 20 per cent.s The revenue and earnings profile of the company has improved steadily over the past year; earnings are now at healthy levels that provide for a high degree of comfort in paying interest obligations.

The company operates two channels in the business news space — CNBC TV 18 in English and the recently-launched Awaaz in Hindi. It now faces intense competition from New Delhi Television. But over a one-year period, we do not perceive any significant risk to profitability and its ability to pay interest on its fixed deposits. Buy into this attractively priced FD option.

City Union Bank: Senior Citizens can consider investing in the short-term deposits of City Union Bank can be considered. The bank offers 6 per cent for deposits maturing in six months, 7 per cent for one-year deposits and 7.50 per cent for two- and three-year deposits. The rates offered are competitive and are higher than what is on offer on post office time deposits. Deposit insurance for deposits of less than Rs 1 lakh made in scheduled commercial banks make the scheme even more attractive. Deposits for a term longer than three years, however, can be avoided. Small-savings schemes are more attractive for such deposits.

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