Jaiprakash Associates

The one year fixed deposits of Jaiprakash Associates is offering an interest rate of as much as 12 per cent for a one year deposit, under cumulative and quarterly plan. It's not advisable to park money for more than one year, as company fixed deposits are unsecure and in the long term the prospects of any company is uncertain. There is always the possibility of a company being unable to fulfill its obligations to service debt.

If we compare the 12 per cent for a period of one year, it is far superior to bank deposits, where one can get a maximum of 9.25 per cent for a similar duration. The interest rate is compounded quarterly at Jaiprakash Associates, so the yield works to approximately 12.12 per cent.

Now coming to the company's activities, it's a diversified company with interests in cement, engineering construction, hospitality, hydro thermal and wind power etc.

DHFL Aashray deposit

DHFL is a housing finance company, whose deposits have been rated "AA" by CARE. This indicates high quality by all standards & high investment safety. The company is offering 10.50 per cent for a one year term deposit, with quarterly compounding. The two and three year fixed deposits offer an interest rate of 10.50 per cent.

There is an extra earnings for senior citizens, widows, armed forces personal & existing DHFL home loan borrowers/stake holders.

The rate of interest is fairly attractive, when considers bank rates of interest. Investors could consider the fixed deposits for a period of one year. It's also the best time to lock money into fixed deposits given that interest rates are likely to fall, as the RBI may announce a cut in interest rates in its policy meeting of January 29, 2013.

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