Public deposits

[Vishnu varadhan]

It is a very old source of  finance in India.when modern banks were not there,people used to deposit their savings with business concerns of goods repute.Even today it is a very popular and covenient method of raising medium term finance.

Statement formation:

The rate of interest on public deposits depends on the period of deposit and reputation of the firm.

[lavanya]

The rate of interest however varies with the time period of the public deposits. The companies generally offer 8-9 % interest rate on the deposits made for one year.

The companies offer 9 – 10 % interest rate over public deposits for the two years. While 10 – 11 % interest rate as offered for the three years deposits. There are rules regulating the fixed deposits..

[Hemapriya]

It refers to the unsecured deposits invited by the companies from the public mainly to finance working capital needs.

[Nivedha Kannan]

Public deposits are an important source of financing the medium-term, long-term requirements of the company. The term ‘Public deposit’ implies any money received by the company through the deposits or loans collected from the public.

[jagadeeshwaran]

An company can accept deposit to public medium and short term requirement of funds.the source become very popular off late because a company became very higher interest from the offer of banks

[Author]

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