SECURITY DEPOSITS - Tool for Retention

• A few Corporates stipulate to their new employees to provide Security Deposit to reduce attrition.
• The banks propose for the employee to keep the Security Deposit in the form of a Fixed Deposit (FD) with the Bank.
• The employee cannot withdraw such FDs without the consent of the company and the company has the right to withdraw the FD in the event of employee leaving the organization before a certain stipulated period
• But if he doesnt move from the company then this amount is his gain and incentive and his property....
  
  Features
  
• The Fixed Deposit is available in a single mode of operation.
• Maturity period ranges from 6 months to 10 years
• Minimum amount of deposit required is Rs.10,000 and beyond that deposits can be in the multiples of Re.1.
• Interest is compounded quarterly and reinvested with the principal amount.
• Interest will be subject to TDS
• The Fixed Deposit cannot be auto-renewed
  
• Rate of interest is congruent to the current rates ion fixed deposits.
  
• Benefits
  Earn high returns on the money deposited
  Safe and Secure money deposit
  Flexible time period

Thus its going to be a good tool going forward to nail attrition in global business world. This gets a great potent weapon due to increasing returns on bank deposits after an all time low rates of interest for a period of last 4 years. This can work as a bonus and an incentive to them.......