What are the disad vantage of public deposits ?

1. Limited interest rates: Public deposits typically offer lower interest rates compared to other investment options such as fixed deposits or mutual funds. This can result in lower returns for investors.

2. Lack of liquidity: Public deposits are usually locked in for a specific period of time, which means that investors may not have access to their funds when they need them. This lack of liquidity can be a disadvantage for those who may require immediate access to their money.

3. Risk of default: There is a risk of default associated with public deposits, especially if the company or institution offering the deposit goes bankrupt or faces financial difficulties. In such cases, investors may lose their entire investment.

4. Limited regulatory oversight: Public deposits are not as heavily regulated as other investment options such as bank deposits or mutual funds. This lack of regulatory oversight can expose investors to higher levels of risk.

5. Inflation risk: Public deposits may not offer returns that keep pace with inflation, leading to a decrease in the purchasing power of the invested funds over time. This can erode the value of the investment and result in lower real returns for investors.