What are the special features of public deposits ?

Solution

Special features of public deposits :

1. Deposits are accepted for specified period for at least six months and at the most 36 months.

2. Deposits are made generally in the multiples of thousands.

3. No security is offered to depositors.

4. Interest is paid either monthly, quarterly, half yearly, annually or at the expiry of the period as per agreement. Maximum rate of interest is 15%.
5. Public deposits are cheaper than bank loan for the company and fetch interest at rates higher than deposits with the banks.

Some More Questions From Sources of Business Finance Chapter

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Sources Of Business Finance

What are the special features of public deposits ?

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