If you still plan to open a savings deposit with them, I recommend verifying the following carefully:
1. Scheme details: Get in writing the deposit scheme – rate of interest, frequency of interest payment, minimum deposit, lock-in , withdrawal rights (can you withdraw anytime, partial or full), fees/penalties.
2. Deposit protection: Ask whether deposits are covered under any deposit protection or the Nidhi company’s internal guarantee mechanisms. Understand what happens if the company faces financial stress.
3. Regulatory status: Confirm that the company is compliant and licensed as a Nidhi, check if it is registered with the appropriate Registrar of Companies and follows the statutory norms for Nidhi companies. (We have registration details but you should verify current status).
4. Financial health and track record: If possible, ask for audited financial statements, any disclosures of liabilities, how many members, how large the deposit portfolio is. Because newer / smaller firms have more risk.
5. Legal documentation and clarity: Ensure you receive proper membership/deposit account documents, pass-book or statement, clear terms & conditions.
6. Compare alternatives: Compare the interest rate and terms with recognized banks (scheduled commercial banks) and other well-known financial institutions. Sometimes “higher” interest might come with higher risk or more restrictive terms.