Explain the following term / concept : Depositor

Answer: A depositor is a person who deposits his money with a company for a fixed period, at a fixed rate of interest, in response to the company’s invitation (circular or advertisement).

• A depositor is a creditor of the company and not its owner; he has no voting rights.
• He receives a deposit receipt from the company within 21 days of receipt of money.
• He gets interest at fixed intervals and repayment of the deposit on maturity (6 to 36 months); he may also get premature repayment as per the rules.
• Deposits can be accepted from individuals, singly or jointly (up to three names), and a nomination facility is available.