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United Bank of India: Senior citizens can consider investing in the recently introduced long-term term deposit scheme of United Bank of India. The Bank has introduced a new term deposit bucket of between 7 and 10 years.

Senior citizens are being offered 8 per cent, while the others will be offered 7 per cent. This rate of 8 per cent is comparable to the yield on some of the post-office schemes such as Post Office Monthly Income Scheme and Kisan Vikas Patra.

The attractive yield is also applicable for a longer duration compared to such schemes. Investors can, thus, consider investing a small proportion of their surplus for a 10-year period in this scheme.

JK Paper: An investment can be considered in the fixed deposit programmes across tenures. As the paper business is subject to a high degree of cyclically, the longer tenures are risky. But the rates appear attractive.

The steady improvement in the company's financial profile also augurs well. The substantial reduction in interest outgo and replacement of high-cost debt with funds sourced at lower rates over the past quarter enhances the degree of comfort that is available to investors in the FD programme.

JK Paper is also set to commission a coated paper facility, which would also lead to a scaling up revenues over the next two years.

We had earlier recommended that the three-year option could be avoided.

With further confirmation over the past quarter that the financials are in healthy shape, we believe that even this tenure can be considered as JK Paper is well-placed to ride out a weak phase in the business cycle.

The minimum amount is Rs 10,000. In the two- and three-year options, investors can opt for the cumulative option while the non-cumulative option appears appropriate for the one-year tenure. More information can be sourced from the company's Web site, www.jkpaper.com.

Ceat: Taking into account the attractive interest rate offered, investment in the fixed deposits with one-year tenure may be considered. The one-year deposit carries an interest rate 8.5 per cent which is attractive in comparison to the rates offered by banks and other companies.

Though the interest rates on deposits beyond one-year maturity also appear attractive, it would be better to stick to the shorter tenure option as the tyre industry is still passing through a relatively depressed phase.

The firm trend in input cost and intense competition in the industry along with the sizeable excess capacity would keep the financials under pressure.

First Leasing: Investments in the three-year fixed deposit of First Leasing can be considered. The company offers 8 per cent for a three-year tenure, one of the higher rates offered by established finance companies.

In terms of financial health, the company is in reasonably good shape. Its debt-equity ratio of less than five gives investors higher level of safety. The profit growth record is also impressive with the company growing its profits in nine out of the past ten years. In each of the past ten years, the return on net worth has been above 15 per cent.

The proportion of bad loans is also quite low at less than 1 per cent and its capital adequacy of about 24 per cent offers scope for business expansion.

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