Omnitech Fixed deposit schemes – Yield 14.89% – Is it risky?
Omnitech Info solutions Limited has launched fixed deposit schemes and indicates yield as 14.89% p.a. What is it all about and can we invest in such Omnitech fixed deposit schemes? Is it risky to invest in Omnitech FD ?
About Omnitech Info solutions
Omnitech Info solutions Ltd is an IT company which provides IT services which includes remove infra services, Business continuity planning, disaster recovery services, application services, testing etc.,
Highlights of Omnitech Fixed deposit scheme
- Omnitech FD scheme is available in cumulative deposit scheme and non cumulative scheme.
- Minimum investment is Rs 25,000 and in multiples of Rs 1,000 thereof
- Nomination facility is available.
- Interest to be calculated from the date of encashment of cheque/DD and will be rounded off to the nearest rupee.
- Deposits will be accepted from Individuals, Minors (through Natural Guardians), HUFs, Association of Persons, Registered Societies, and Registered Trusts.
- No tax deduction at source shall be made, provided, declaration in prescribed form No.-15G/15H as applicable is submitted for each financial year.
- Interest will be payable quarterly/compoundable quarterly.
How to apply for Omnitech FD
- Fill in the FD Application Form (
- Application Form along with cheque/draft favouring of "OMNITECH INFOSOLUTIONS LTD.-FIXED DEPOSIT COLLECTION A/C"(CMS CODE-OMNITECH and crossed "ACCOUNT PAYEE ONLY" should be deposited with CMS branches of AXIS Bank either directly or through Managers/Brokers to the Scheme. Separate pay-in-slip meant for Cash Management Services (CMS) should while depositing the cheque/DD with the AXIS Bank mentioning the "CMS Code-OMNITECH" therein.
- Depositors outside Mumbai, where there is no CMS branch of AXIS Bank may send their applications along with Cheque/DD payable at Mumbai directly to Link Intime India Pvt. Ltd., C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West), Mumbai-400078. Outstation cheques are not acceptable unless payable at par.
Also read: SRS fixed deposit schemes – Yield 15% – Should we invest?
Why we invest?
- High interest rates of 11.5% to 12.5% p.a. and annualised yield upto 14.89% p.a.
Why not to invest?
- These company fixed deposit schemes are unsecured, hence they are high risk.
- These company fixed deposit schemes are illiquid. Unlike any other bank FD, you cannot withdraw as and when you need money
- Interest income is taxable and the returns would be low in case of investors who are in high tax bracket. For such investors, the returns would be 8% to 8.64% p.a.
- Promoter’s shareholding pledged for 30% as on 30-Dec-2012.
Conclusion: These company fixed deposits are high risk investments. There are better company fixed deposits in case an investor wants to invest in company FD to get higher returns. We would not recommend investors to invest in such scheme.
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Omnitech Fixed deposit schemes
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