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Wheels India: An investment can be considered in the three-year fixed deposit option of Wheels India. The rate of 7.5 per cent on offer is attractive. The cumulative option is preferred, as it would offer a slightly higher yield of 7.7 per cent.

The rates on offer for the one-year and two-year options are 6 per cent and 6.5 per cent. There are other companies such as OCL that offer a higher rate for these tenors.

Wheels India is a TVS group company that makes wheel rims. It caters to the requirements of manufacturers of passenger cars, commercial vehicles, tractors and jeeps. The company has a stranglehold in this market.

Despite the growth numbers being lower than the past two years, they are on a high base, thanks to the robust increase during this period.

The demand for the company's products are at healthy levels. The company has also expanded its exports; it also now manufactures air suspension systems for commercial vehicles and buses. This could provide a boost to revenues.

The financials of Wheels India are in good shape and investors in the FD programme have no cause for worry. For deposits from the public, the company has exhausted about 80 per cent of the available limit.

So, investors should use the window that is now open to invest in the three-year option. The minimum amount of Rs 21,000 should not deter an investment decision.

For deposits from shareholders, Wheels India has exhausted about 50 per cent of the limit. Shareholders should use the option to lock in a part of the funds that they have earmarked for investing in fixed-income investments.

OCL India: Investors can consider exposure in the fixed deposit options of OCL India. The one-year as well as the three-year options can be considered.

As the two-year option does not offer any premium over the rate on the one-year option for the longer duration, it need not be considered. Investors could divide their exposures equally between the one-year and three-year option to have flexibility, in case interest rates edge up.

Though the premium for the three-year option is a modest 0.25 per cent, the rate of 7.75 per cent appears attractive to lock into.

We had earlier recommended only the one-year option. But given the trend in interest rates, we now take the view that the three-year could be considered.

OCL India is in the business cement and related products. The company's financials are in healthy shape.

With an improvement in cement prices, profitability and earnings levels are likely to comfortably cover the interest outgo.

City Union Bank: Senior citizens can consider investing in the short-term deposits of City Union Bank. 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 value 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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