Question

Information report of public deposits invited by company introduction

Answer 1

A public deposit is usually invited by a company in order to raise its working capital. Often, the company seeks the help of its members or directors to contribute towards the deposit. At times, deposits are also taken from the outside public for a specific interest rate. This method is becoming increasingly popular because of the high rate of interest associated with bank credit.

According to law, a public deposit should not be taken for a period of less than six months. Similarly, the maximum period for which such a deposit can be taken is three years or 36 months.