Investing in FD with public limited companies
The public limited companies while inviting deposits from the investors in the shape of fixed deposits offer higher rate of interest that that of the banking industry. The higher rate of interest is offered basically to attract the investors for making deposits with such companies. It is also seen that the investment sometime is very risky as they stop payment of interest after some time and even the maturity amount is also delayed very much may be even many years. Many a times even the interest for the delayed period is not paid. The rules as framed are also not so much investor friendly to fully protect the interest of the investors.
The investors therefore need to consider the risk factor while investing with the companies. It is your hard earned money and in most of the cases the interest is the bread and butter for his livelihood. more
The investors therefore need to consider the risk factor while investing with the companies. It is your hard earned money and in most of the cases the interest is the bread and butter for his livelihood. more
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Greed is the bone of all disappointments. While offering FD Schemes, Companies calculate that about 5% of Total Deposits shall never be claimed, because some people die amongst them a large number being Senior Citizen. Some forget and misplace or loose the Documents. Even if some people go to Courts, the Process is made very complicated. They will ask you to resubmit Documents, which normally have already come in Possession of the the concerned Corporate. If one Co. fails to Repay the loss of Pricipal alone is equal to years of interest earnings (and more). more
Jan 02
@Nagaland Nileshwar, Sir, my post was related to risk factors in investment with private limited companies under FD scheme. I would request you to kindly stick to the issue so that it does not get diluted. Sir you can alwayz post your political posts separately in the appropriate circle or wherever you desire. Many people would be interested in the debate on congress or bjp. May be I also participate but my request to you is sir not to dilute the issue in the post. more
Jan 02
That mean, you are discussing about public sector banks! more
Jan 02
Not sir. I am talking about public limited companies inviting deposits. more
Jan 02
Yes one needs to be very careful while investing in FD of Private Companies even if they are well known commercially. It happened to me in case of FD in New Indian Express. They returned the maturity amount after 5 months after repeated reminders and calls and did not pay me one paise interest for the delayed months. I let go of the matter thinking that at least I got back the principal amount. But such unfair practices must be checked with due penalty. In India, Institutions are protected by Law but individuals are not. So such things happen unchecked. more
Jan 02
