I am having an account in margadarsi chits since more than 4 years now. Initially you feel good when you are getting dividends and after sometime it will start becoming less. When you require the amount you have to plan it many months before as there will be other bidders also for the amount. You may not get the amount when you desire as they advertise. In case you are are successful bidder also your misery will not end here. You have to give 3 guarantees for the amount with their salary certificates / IT returns with their signatures.
Actually it is very good in view of safety for other people, but you have to find people for the same with salary / IT returns who can match the amount you are taking and again you will an obligation that if they (who have given guarantee) ask you to give guarantee to them (weather it is smaller than your amount or bigger than your amount) you should oblige them even if you are not willing. After all these there will reduction of amount for the chit charges (average about 5%) from the final amount. Finally I feel balance you finances and go for an RD account and be happy.