Rasoya Proteins launches fixed deposits schemes

DELHI: Rasoya Proteins has launched fixed deposits for durations of one, two and three years. The minimum amount of investment is Rs 25,000 and in multiples of Rs 1,000 after that. Rasoya Protein is engaged in the business of soya processing through solvent extraction and it manufactures soya edible oil, poultry feed, wheat flour and aqua feed.

Product

The company pays 11.5% for a one-year deposit, 12%for two years and 12.5% for three years. Interest is paid on a quarterly basis or on a cumulative basis. Premature withdrawal is possible after six months, but there is a penalty of 1% on the original interest rate.

Why invest

The company is profit making and has made a profit of Rs 20 crore for the year-ended March 2013. The interest rate of 12.5% pa for three years is higher by 3.0-3.5% than the rate offered by most banks.

Why not to invest

Company fixed deposits are unsecured and illiquid. Interest income from company fixed deposits is taxable and for those in the highest tax bracket the post tax return works out to a mere 8.67%.