Public deposits

[Hari priya]

Public deposits are the source for meeting the working capital needs of the company. Companies find public deposits as attractive source due to the following reasons:

1. It is more convenient to borrow funds in the form of public deposits than borrowing the funds from banks and financial institutions.
2. The rate of interest rate paid on public deposits is less in comparison with other borrowed funds.
3. They are unsecured form of borrowing.
4. Funds raised from public deposits can be used for any purpose.

[Manikandan]

Public deposits refer to the depoaits that are attained by the numerous large and small firms from the public.the public deposits are generally solicited by the firms in order to finance the working capital requirements of the firm.

The companies offer interest to the investors over public deposits.

 

[Mounika]

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

[kalaivaniG]

public deposits have the following advantages:

I. It is beneficial to the company accepting deposits since it receive finance at a lower rates of interest than charged by the banks and special financial institutions on lending.

II. Interest paid on deposits is a deductible expense for income tax purpose

[arul]

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

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