postofficce savings habit

8/10/2019 Postofficce Savings Habit

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INTRODUCTION

The post office saving schemes basically started for rural area development motive, now a

days the people are lagging to save in post office because of other saving banks & more

schemes are available in our country with high interest to pay the people, so this study

analysis about womens perception to saving in post office. Perception means different type

of people think differently in the same situation, this study reveals about the womens

perceptions, expectations, thoughts and their activities towards post office saving scheme.

Perception of investors about saving schemes will have a significant impact on the saving

behavior of people. For example, people who have positive perception about the scheme in

which they have invested will continue to invest in the same scheme. Very often, they will

start investing on other schemes from the same institutions. People with positive perception

might tell good things about the schemes to other people. In fact, they might act as unpaid

publicity agents. Hence, it is necessary to study about the nature of perception that exists

among investors about saving schemes and institutions offering such instruments.

OBJECTIVES OF THE STUDY:-

The major objective of the study is to study in detail the perception of womens towards post

office saving schemes and to analyze their perceptions with regard to different aspects of

performance of post office in detail. Following are the specific objectives:

To understand the level of perception and awareness of womens in the post office

saving schemes with reference to Kasaragod district

To study about womens expectation from the post office saving schemes

To know whether there is any significant difference in the level of perception of

different category of investors, viz., salaried, business, agriculturist and housewives.

To understand the problems faced by the customers of post office saving schemes

while transacting their money.

To know whether the women investors are satisfied with their investments post office

saving schemes.

To give few suggestions to increase more customers in post office schemes.

To study about customers services offered by post offices.


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SCOPE OF THE STUDY

This project aims at knowing the perceptions of investors towards post office saving and

different aspects of their performance. Perception here means what the investors actually

know about their investments, what is their understanding about the different schemes of thepost office investment and their opinion about the returns, whether the returns according to

them is up to the industry average or below or above the industry average etc.

The term investors referred here includes only those who are the pres ent investors

of the post office schemes. Further, the investors referred here covers only small individual

investors of different categories, viz., salaried persons, business persons and housewives.

Further, since this study being student research work in partial fulfillment of the

requirements for the award of Degree in Bachelor of Commerce and the available time being

very limited, area of the present of study is restricted only to post office saving investors in

the area of Kasaragod District.

CHAPTER SCHEME

The project is divided into five chapters. The first chapter deals with introduction.Theorotical

background of the study is dealt in the second chapter. The third chapter contains a profile of

Indian Postal Service and the fourth chapter deals with analysis and interpretation of data and

the fifth chapter contains findings and suggestions.

NEED FOR THE STUDY:-

Post office saving is the best form of saving schemes which provide substantially lesser risks

of suffering losses. To know the women's perception in the post office saving scheme, it

contains different type of customers satisfaction level, their expectations and interest. What

kind of problems customers facing in post office. To know the customers age, occupation,

annual income, and scheme type, etc.

Post office saving schemes is safety, and it has 8 types of schemes available in post office.

But the peoples are not willing to save in post office, the reasons are customers facing some

problems example money transfer, create new account, close the account and change the

nominees names. This study helps to give some suggestions to solve the customers

problems towards the post office saving schemes and to improve the customer services


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through conducting a research. Since the available time being very limited, in this project

work an attempt has been made to study the perceptions of womens towards post office

saving schemes and to analyze the data collected about womens perception towards post

office saving from different dimensions.

METHODOLOGY OF THE STUDY

Research in common parlance refer to a search for knowledge, one can also define research

as a scientific and systematic search for pertinent information on a scientific topic.

According to Clifford woody research comprises defining and redefining Problems,

formulating hypothesis or suggested solutions, collecting, organizing and Evaluation data,

marking deductions and reaching and conclusions, and at last carefully Testing the

conclusions of determine whether they fit the formulating hypothesis.

In order to achieve the objective of understanding the perception of investors towards post

office saving, a well-structured questionnaire considering various parameters of perception of

investors was designed.

The studies based on the data collected through Primary and Secondary sources. A sample of

100 customers was taken for the study.

Primary Data

The information has been collected through women's who all invested in post office saving

schemes were personally interviewed and also have been collected through questionnaire.

Secondary Data

The post office Website formed the main source of Data Collection. Various books on

Financial Management, journal and articles were also referred during the study.

Statistical tool used

The data collected were carefully analyzed & interpreted using MS Office mathematical

tools.

LI M I TATIONS OF THE STUDY:

The present study A Study on Womens Perception towards Post Office Saving withreference to Kasaragod District is based on the survey information collected from


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100 investors and published information collected from journals, newspapers and

websites. Findings of this study are purely based on the survey responses of post

office saving investors.

Short time period of project work

Findings of this study are purely based on the survey responses of post office saving

women investors. Accuracy of the analysis, findings, and suggestions is dependent on

accuracy of survey responses of the respondents.

Nonavailability of confidential matter is also one of the limitations of the report.


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BACKGROUND OF THE TOPIC

The problem of surplus gives rise to the question of where to invest. In the past, investment

avenues were limited to real assets, schemes of post office and banks. At present, a wide

variety of investment avenues are open to the investors to suit their needs and nature.

Knowledge about the different avenues enables the investors to choose investment

intelligently. The required level of return and the risk tolerance level decide the choice of the

investor.

The Small savings schemes are designed to provide safe and attractive investment options to

the public and at the same time to mobilize resources for development. These schemes are

operated through about 1.54 lakh post offices throughout the country. Public Provident Fund

Scheme is also operated through about 8000 branches of public sector banks in addition to

the post offices. Deposit Schemes for Retiring Employees are operated through selected

branches of public sector banks only.

Post Office Saving is the best form of savings schemes which provide substantially lesser

risks of suffering losses. Therefore, wherever you go the same schemes are available through

the India, So wherever the customers go which makes easy adaptability. They are widely

accepted among the different sections of the Indian society and among the different age

groups.

The small savings scheme in India has seen a new face. There is a plethora of Government of

India sponsored and fully backed and secured savings schemes; to suit the individual needs

and requirements of the investing class. These schemes assure safety, security and liquidity

and also offer steady yields of income and returns. Of late, these savings schemes have taken

a new turn for the better. The terms of issue of these schemes such as Public Provident

Fund (PPF), NSC (National Savings Certificates), KisanVikas Paprika (KVP) etc. have all

been revised to more clearly reflect the mark-to-market rates of return and yields. Where the

KVP has been discontinued, the other schemes have had a face lift. New interest rates have

now been linked to the 10 year and 5 year Government of India Bond yields. This would also

indicate and mean that the interest rates and yields on these savings instruments will become

variable; linked, as they are, to mark-to-market rates of return and yields. This is a major

change from the past when the interest rates on these savings instruments were fixed and non-

variable.


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CONCEPTUAL FRAMEWORK

Perception is the organization, identification and interpretation ofsensoryinformation in

order to represent and understand the environment. All perception involves signals in

thenervous system, which in turn result from physical stimulation of the sense organs.

Perception is not the passive receipt of these signals, but can be shaped

bylearning,memory andexpectation.Perception involves these "top-down" effects as well as

the "bottom-up" process of processing sensory input. The "bottom-up" processing is basically

low-level information that's used to build up higher-level information (i.e. - shapes for object

recognition). The "top-down" processing refers to a person's concept and expectations

(knowledge) that influence perception. Perception depends on complex functions of the

nervous system, but subjectively seems mostly effortless because this processing happens

outside conscious awareness.

Afacility incharge of sorting,processing, and deliveringmail torecipients. Post offices are

usually regulated and funded by the federal government. Post offices also provide other

services including passport applications, Post office box distribution, and other delivery

services. Eachpost office is assigned a specific jurisdiction and is responsible for the delivery

and receipt of mail for individuals or businesses within the jurisdiction.

Small savings schemes are designed to provide safe and attractive investment options to the

public and at the same time to mobilize resources for development. The Public Provident

Fund has been and will continue to be a favored investment destination for investors and

serves as a perfect tool for retirement planning. As it is very tax- efficient; it has been a

favored destination of investment for investors. The scheme has been revised recently with

the following features.

The Senior Citizens Savings Scheme is a helpful tool of investment available to senior

citizens. A senior citizen is one who has attained the age of 60 years. The following are the

key features this scheme.

Post Office Monthly Schemes (POMIS) are schemes offered by post offices that offer a

guaranteed rate of return. This scheme is open for everyone and an account can be easily

opened at any post office.

The National Savings Certificates are issued by the Department of Post, Government of Indiaand are available at all post offices in the country. NSC serves as a long term saving option
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for the salaried class, businessmen, and other IT assesses. A Trust and a Hindu Undivided

Family (HUF) are not eligible to invest in this scheme.

The New Pension Scheme (NPS) is a scheme launched by the Government of India for non-

government employees. It offers investors a low-cost avenue to save for retirement. Anyone

falling under any income stream is eligible for the NPS, where the investor needs to

contribute monies/funds every month during his working life. These funds are then invested

as per the preference of the investor.

CURRENT SCENARIO

In todays scenario there has been a major change i.e. economic prosperity all over. The

entire world is talking about the robust growth rates in this part of the world. Higher income

levels and booming stock markets have led to more and more numbers of high net worth

investors (HNIs). This means the availability of huge investible surplus. The investors with

higher risk appetite want to experiment and try new and exotic products in the name of

diversification. This has resulted in emergence of new options within the same or fresh asset

classes. There are more products available within each asset class be it Equity, Mutual Fund,

Gold, Real Estate. The common perception of investors is to buy when the market supports in

uptrend and not to invest in the falling time. They wait for the stabilization in the market; so

in this research, we would like to draw a clear picture on the trends of traders and investors.

Markets have personalities because investors have emotions.

The Indian postal network is among the largest networks in the world in terms of area

covered and population served, and constitutes an important mechanism of achieving

transportation and communication.

The Indian Postal System currently provides 38 services which can broadly be divided into

four categories: Communication services (Letters, Post Cards etc.), Transportation services

(Parcel), financial services (Savings Bank, Money Order, Postal Life Insurance) and Premium

Value Added Services (Like Speed Post, Business Post). The Post Office Savings Bank is the

largest bank in India in terms of network, accounts and annual deposits. 9.52 As on March

31, 2004, there were 1, 55,669 post offices or outlets, of which roughly 89 per cent were

outside cities. On an average, a Post Office serves an area of 21.11 square km, and a

population of 6,592.


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Financial products and services are an important part of services provided by post offices in

urban and rural areas. New initiatives have been taken up for facilitating, through its network,

fund transfer for those customers who do not have the benefit of a vast retailing network. A

strategic alliance with Western Union Financial Services has helped to strengthen the

payment business by providing facilities for processing of in-bound international money

transfers. Indian Post commands 23 per cent of the total South Asian market share of the

international money transfers undertaken through Western Union Financial Services. The

Government of India has introduced a special high-yielding assured return scheme namely

The Senior Citizen Savings Scheme (SCSS) - 2004 with effect from August 2, 2004.

The scheme provides for a special rate of interest of nine per cent for depositors and is

vended through post offices and Public Sector Banks. The Department, in September 2004,

tied up with the UTI Asset Management Co. Ltd., for the retailing of five mutual fund

schemes on a pilot basis from selected post offices. A new initiative for sale of non-life

insurance products through post offices has been taken up from January 2004. Under this

scheme, the Department of Posts will function as the marketing agent for M/s Oriental

Insurance Company for sale of 16 of its products. These products are currently being made

available through select post offices in some Circles and will be gradually extended to post

offices throughout the country.

REVIEW OF LI TERATURE

1) Karthikeyan (2001) has conducted research on Small Investors Perception on Post

Office Saving Schemes and found that there was significant difference among the four

age groups, in the level of awareness for National Savings Schemes (NSS), and

Deposit Scheme for Retired Employees (DSRE), and the overall score confirmed that

the level of awareness among investors in the old age group was higher than in thoseof the young age group. No difference was observed between male and female

investors except for the NSS and KVP. Out of the factors analyzed, necessity of life

and tax benefits was the two major ones that influence the investors both in semi-

urban and urban areas. Majority (73.3 percent) of investors of both semi-urban and

urban areas were very much willing to invest in small savings schemes in future

provided they have more for savings.


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2) Gavini and Athma (1999) found that social considerations, tax benefits, and provision

for old age were the reasons cited for saving in urban areas, whereas to provide for

old age was the main reason in rural areas. Among the post office schemes, KVP

(KisanVikasPatra) and Post Office Recurring Deposit Account (PORD) were the most

popular, in both urban and rural areas.

3) Preeti Singh stated that Post office schemes are generally like the Commercial Bank

schemes. They have a saving account, a Recurring Deposit account, Time Deposit

account which are also recurring in nature. The savings account operates in the same

way as commercial Banks through cheques and there is no restriction on withdrawals.

4)

Tamilkodi (1983) has stated that small savings schemes have a psychological appeal

and it provides an opportunity for ordinary men, women, and even children to park

their savings. It reaches a large number of people and covers a wide range of areas.

She also suggested that efforts should be taken to simplify the procedure of small

savings schemes to suit the needs of illiterate and socially downtrodden People.

Further, she suggested an increase in the rate of interest of small savings schemes to

meet the challenges of commercial banks.
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ORGANISATIONAL PROFI LE

POSTAL SERVICES IN I NDI A

For more than 150 years, the Department of Posts (DoP) has been the backbone oftheCountryscommunication and has played a crucial role in the countrys socio -economic

development. It touches the lives of Indian citizens in many ways: delivering mails, accepting

deposits under Small Savings Schemes, providing life insurance cover under Postal

LifeInsurance (PLI) and Rural Postal Life Insurance (RPLI) and providing retail services like

bill collection, sale of forms, etc.

Today Indian postal system has a reach that ranges from arid deserts of Rajasthan and Kutch

to the icy heights of Laddakh. India has the highest post office in the world in Sikkim at a

height of 15,500 feet (postal code - 172114). Indian postal service provide many facilities like

- general or registered mail, parcel post, speed post, express post, e post and special courier

service known as EMS-speed post. They also offer a number of post office saving schemes

like National Savings Certificate, Recurring Deposits and Term Deposits.

The key objectives of the India Post 2012 project are:

Modernization and computerization of all Post offices in the country including Branch

Post offices in rural areas, mail offices and administrative and other offices;

Development of scalable, integrated and modular software covering all operations of

the Department of Posts such as Mail Operations, Postal Banking, Insurance, Finance

and HR;

Establishment of required IT Infrastructure including Data centre, Wide Area

Network (WAN) based networking of the departmental post offices; and

Deployment of Rural Information Communication Technology (Rural ICT)

infrastructure in all 1, 30,000 Rural Post Offices.

Vision Statement of I ndia Post

India Post will be a socially committed, technology driven, professionally managed &

forward looking Organization


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Mission Statement of I ndia Post

To provide high quality mail, parcel and related services in India and throughout the world; to

be recognized as an efficient and excellent organization exceeding the expectations of the

customers, employees and the society; to perform the task by: Total dedication to

understanding and fulfilling customer's needs Total devotion to providing efficient and

reliable services, which Customers consider to be value for money. Total commitment to

providing challenging and rewarding career for every employee.Total recognition of the

responsibilities as a part of the social, industrial and commercial life of the country Total

enthusiasm to be forward looking and innovative in all areas.

Functions:

to the Department of Posts.

(Administration), Post Office Life Insurance Fund (Administration), Rural Post Office Life

Insurance Fund (Administration) and Extra Departmental Agents Group Insurance Fund

(Administration), Printing of public postage stamps/commemorative stamps including postal

stationery, premium postal products and any agency functions.

matters relating to all international bodies dealing with postal communications such as

Universal Postal Union, Asian Pacific Postal Union (APPU), and Common Wealth Postal

Union. Matters relating to International Postal Financial Services.

Office including those based on cable, Radio and Satellite communication channels

Provided that these matters do not amount to broadcasting, narrow casting, cable and radio

networking services and are also not governed by the Indian Telegraph Act 1885 and the

Rules made there under, and not exclusively allotted to any other Department.


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to the Department.

under as well as other laws or enactments having a bearing on postal activities, not

specifically allotted to any other Department

Objectives

The key objectives of the India Post 2012 project are:

Modernization and computerization of all Post offices in the country including Branch

Post offices in rural areas, mail offices and administrative and other offices;

Development of scalable, integrated and modular software covering all operations of

the Department of Posts such as Mail Operations, Postal Banking, Insurance, Finance

and HR;

Establishment of required IT Infrastructure including Data centre, Wide Area

Network (WAN) based networking of the departmental post offices; and

Deployment of Rural Information Communication Technology (Rural ICT)

infrastructure in all 1, 30,000 Rural Post Offices.

H istory of I ndian post

English East I ndia Company, 16121857

TheEnglish East India Company (EIC) had a presence in India since the early 17th century.

As it expanded its influence, there was a need to establish and maintain official and

commercial mail systems. Although courier services connected larger towns with their

regional seats of government, there was no integrated postal service operating before 1837

existing services were not generally intended for personal mail.

Lord Clive established a postal plan (known asJamidaraPratha) on 24 March 1766 inWest

Bengal.The system was reorganized and made available for public use on 31 March 1774, in

1778 in Madras and 1792 in Bombay whenWarren Hastings wasGovernor-General of India.

The first general post office operated by the EIC opened in Calcutta at that time, and a
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Postmaster-General was appointed in 1781.TheMadras andBombay Presidencies established

similar arrangements in their regional capitals in 1778 and 1792, respectively. After 1793,

when Cornwallis introduced the Permanent Settlement, financial responsibility for

maintaining the official posts rested with the zamindar. In addition, private dawk mail

systems sprang up for the commercial conveyance of messages (using hired runners). The

EIC posts co-existed with postal systems maintained by a number of princely states.While

the latter produced stamps for in-state use, British Indian postage stamps were required for

sending mail beyond their boundaries.

Stamps were issued for the first time for all British India in 1854. The lowest denomination

was the -anna (blue), followed by the one- (red) and four-anna (blue and red). They were

printed from lithographic stones at the Surveyor-General's Office in Calcutta. Since the four-

anna stamps were composed of two colors, they required two different printings (one for

Queen Victoria's head in blue and the other for the surrounding red frame).

Post Off ice Act, 1837

The Post Office Act XVII of 1837 gave the Governor-General of India the right to carry

letters by post within EIC territory. The system was available to certain officials without

charge (which became a controversial privilege). The Indian Post Office was established on 1

October 1837 as a public postal system operated by the company's governing body. Post

offices were established in major towns, and postmasters appointed. Postal services required

advance payment in cash, prices varying with weight and distance.

Post Off ice Act, 1854

A commission was established in 1850 by Lord Dalhousie to evaluate the Indian postal

system. It submitted its recommendations in 1851, resulting in the 1837 act being superseded

by the Post Office Act of 1854. Postage stamps were introduced at this time and postal rates

fixed by weight, no longer dependent on distance. The new provisions created a monopoly,

whereby the Indian Post Office was charged with carrying mail throughout British India.

Despite this, some princely states operated their own systems. Those known as Convention

States (of which the first wasPatiala in 1884) had agreements with the Post Office of India to

provide service within their territories with overprinted stamps issued by the Post Office.
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Other princely states (known as Feudatory States) provided their own services and issued

their own stamps (valid only within their own states).

The post of Director-General of Post Offices of India was created to oversee operations, with

H.P.A.B. Riddle the first appointee. The duties of the postmaster-general were separate from

those of a presidency postmaster: while the former administered the postal system of the

larger provinces (such as theBombay Presidency or theNorth-Western Provinces), the latter

attended to the smaller provinces (such asAjmer-Merwara and major political offices such as

Rajputana). The 1854 Act provided for uniform rates, routes and postmark-design

specifications for each post-office category.

F ir st Telegraph Act for I ndia, 1854

Before the advent of electric telegraphy, the word "telegraph" was used for semaphore

signaling. During the 1820s the East India Company government in India considered

constructing signaling towers ("telegraph" towers), each 100 feet (30 m) high and 8 miles

(13 km) apart, from Calcutta to Bombay. These towers were built in Bengal and Bihar, but an

India-wide semaphore network never existed. By mid-century, electric telegraphy was viable

and hand-signaling obsolete.

The first Telegraph Act for India was the British Parliament's Act XXXIV of 1854. When a

publictelegram service was begun in 1855, the charge was fixed at one rupee for each sixteen

words (including the address) for every 400 miles of transmission. Charges were doubled for

telegrams sent between 6:00 p.m. and 6:00 a.m.; these rates would remain fixed until 1882. In

186061 (two years after the end of Company rule), India had 11,093 miles (17,852 km)

miles of telegraph lines and 145 telegraph offices. Telegrams totaling Rs. 5 lakh in value

were sent by the public, expenses of theIndian Telegraph Departmentwere Rs. 14 lakh andthecapital expenditure until the end of the year totaled Rs. 65 lakh.
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Posts and the Bri tish Raj (18581947)

The British Raj was instituted in 1858, when the rule of the East India Company was

transferred to the Crown.[9]By 1861, there were 889 post offices handling nearly 43 million

letters and over 4.5 million newspapers annually. The first superintendent of the post office

was appointed in 1870 and based inAllahabad.In 1876, British India became the first non-

founding member of theGeneral Postal Union.

A number of acts were passed during the British Raj to expand and regulate Posts and

Telegraphs service:

The Government Savings Bank Act 1873 (5 of 1873), passed by the legislature 28

January 1873, was enacted in 1881. On 1 April 1882, Post Office Savings Banks

opened throughout India (except in theBombay Presidency). InMadras Presidency,it

was limited; in the Bengal Presidency, no POSBs were established in Calcutta or

Howrah.

Postal life insurance began on 1 February 1884 as a welfare measure for the

employees of the Posts & Telegraphs Department as Government of India dispatch

No. 299 dated 18 October 1882 to the Secretary of State.

Telegraph Act, 1885 (Indian Telegraph Act)

The Indian Post Office Act 1898 (6 of 1898), passed by the legislature on 22 March

1898, became effective on 1 July 1998 regulating postal service. It was preceded by

Act III of 1882 and Act XVI of 1896.

The Indian Wireless Telegraphy Act 1933 (17 of 1933)

The world's first official airmail flight took place in India on 18 February 1911, a journey of

18 kilometers (11 mi) lasting 27 minutes. Henri Piquet, a French pilot, carried about 15kilograms (33 lb) of mail (approximately 6,000 letters and cards) across the Ganges from

Allahabad to Naini; included in the airmail was a letter to King George V of the United

Kingdom. India Post inaugurated a floating post office in August 2011 at Dal Lake in

Srinagar, Kashmir.

Telegraphy and telephony made their appearance as part of the postal service before

becoming separate departments. The Posts and Telegraphs Departments merged in 1914,

dividing on 1 January 1985.
http://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Company_rule_in_Indiahttp://en.wikipedia.org/wiki/East_India_Companyhttp://en.wikipedia.org/wiki/Indian_Postal_Service#cite_note-9http://en.wikipedia.org/wiki/Indian_Postal_Service#cite_note-9http://en.wikipedia.org/wiki/Indian_Postal_Service#cite_note-9http://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/General_Postal_Unionhttp://en.wikipedia.org/wiki/Bombay_Presidencyhttp://en.wikipedia.org/wiki/Madras_Presidencyhttp://en.wikipedia.org/wiki/Bengal_Presidencyhttp://en.wikipedia.org/wiki/Indian_Telegraph_Acthttp://en.wikipedia.org/wiki/Henri_Pequethttp://en.wikipedia.org/wiki/Gangeshttp://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/Nainihttp://en.wikipedia.org/wiki/George_V_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/George_V_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/Communications_in_Indiahttp://en.wikipedia.org/wiki/Communications_in_Indiahttp://en.wikipedia.org/wiki/George_V_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/George_V_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/Nainihttp://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/Gangeshttp://en.wikipedia.org/wiki/Henri_Pequethttp://en.wikipedia.org/wiki/Henri_Pequethttp://en.wikipedia.org/wiki/Indian_Telegraph_Acthttp://en.wikipedia.org/wiki/Bengal_Presidencyhttp://en.wikipedia.org/wiki/Madras_Presidencyhttp://en.wikipedia.org/wiki/Bombay_Presidencyhttp://en.wikipedia.org/wiki/General_Postal_Unionhttp://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/Indian_Postal_Service#cite_note-9http://en.wikipedia.org/wiki/East_India_Companyhttp://en.wikipedia.org/wiki/Company_rule_in_Indiahttp://en.wikipedia.org/wiki/British_Raj


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Post-independence service

SinceIndian independence in 1947 the postal service continues to function on a nationwide

basis, providing a variety of services. The structure of the organization has the Directorate at

its apex; below it are Circle Offices, Regional Offices, the Superintendent's Office of Post

Offices, Head Post offices, Sub-Post Offices and Branch Post Offices. In April 1959, the

Indian Postal Department adopted the motto "Service before Self"; it revised its logo in

September 2008.

SMALL SAVINGS SCHEMES OF THE GOVERNMENT OF INDIA

INTRODUCTION

Post Office Savings Bank-included in the Union List vide item No. 39 of Seventh

Schedule of the Constitution of India.

Various Schemes framed by the Central Government under :

o Government Savings Bank Act, 1873,

o Government Savings Certificates Act, 1959,

o Public Provident Fund Act, 1968.

Two non-statutory schemes- introduced through executive orders.

Tapping into the rural savings market has always been an urgent need since a long time now.

The government had tried to bolster the small savings culture by offering a higher rate of

savings than those proffered by scheduled banks.

The ministry has also spared no effort in utilising our country's extensive postal system by

making even the smallest post-offices conduct common banking activities.

Interest rates offered by Post Office Savings Bank accounts are credited at 4.5 percent per

annum for single and joint accounts, pensions, provident funds, superannuation and gratuity

funds. The rate falls down to 4 percent in case of public and security deposit accounts related

to purchase of vehicles and 3 percent on other security and official capacity accounts.

Post office accounts offer cheque facilities against accounts maintaining a minimum balance

of Rs.250/- which is much lower than the minimum balance required by other banks. There is

no restriction on the number of withdrawals but the upper limit on a single holding is set at

Rs.50, 000/- and joint holding is Rs.1, 00,000/- The interest is completely tax-free thanks to

Section 10.
http://en.wikipedia.org/wiki/Independence_of_Indiahttp://en.wikipedia.org/wiki/Independence_of_India


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17

It might seem better to have a savings account with the local post office than a commercial

bank. But the abysmally slow processing and performance rates at postal offices seem hardly

likely to attract the average investor.

Post Office Time Deposits require a minimum deposit sum of Rs.50/- and its multiples

thereafter. Interest is compounded quarterly but paid on a yearly basis or after maturity.

Premature closure is disallowed until the first six months have elapsed and no interest is

payable until the end of the first year. After the first year, the interest amount shall be repaid

with interest @ 2 percent below the corresponding trade discounted rate for the specific

number of years.

On death, the account-holder's beneficiary has the option to continue or close the account. If

the account is closed, then interest is paid as if it were closed prematurely. Both single and

joint accounts can admit nominations.

Post Office Time Deposit Rates

Rates 1 Year 2 Years 3 Years 5 Years

From 15-1-

2000

8 percent 9 percent 10 percent 10.5 percent

For 5-year Recurring Deposits, the minimum instalment is a measly Rs.10/month and the

multiples are at Rs.5/- thereafter, payable before the end of the calendar month. On Advance

Deposits, rebates are offered @ Re.1 for 6 to 11 deposits and @ Rs.4 for every 12 deposits.

Under the Protected Savings Scheme, the Recurring Deposit holder can avail of a small life

insurance policy. If a depositor in a single account or a surviving depositor in a joint account

expires during the tenure of the account, his heir or nominee can get the full maturity value,

subject to the ceiling of course.

In case the depositor has more than one account, then the ceiling is applicable to all accounts

put together. The benefit is provided only if the death results after a minimum of two years

after opening of the account. Additionally, the investor's age must be between 18 and 53

when opening the account, no withdrawals or defaults were committed during the first two

years and the account was operational at the time of the depositor's demise.

Post Offices also offer a Monthly Income Scheme, which gives probably the highest returns

among the schemes covered under Section 80(L). It also offers a terminal bonus of 10


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percent. The scheme used to be useful for retired people but not any more owing to the

possibility of converting an open-ended pure-growth scheme of UTI/ MFs into a pension

plan.

Premature withdrawals are allowed after one year although a penalty of 5 percent is deducted

if withdrawals are affected within 3 years. In case of the death of the depositor prior to

maturity, the account can be closed and the deposit refunded with interest to the nominee/

legal heir. In case the interest paid every month is not claimed by the depositor, then no

overdue interest is payable on such interest.

OBJECTIVE:

Small savings schemes are designed to provide safe & attractive investment options to the

Public and at the same time to mobilize resources for development.

ADVANTAGES OF SMALL SAVINGS SCHEMES

Most of the Schemes have facilities for nomination and in case of death of depositor his / her

nominee (s) can easily withdraw the deposits with interest.

Certificate / Pass Book can be transferred to any other Post Office

Deposits can be made through Government appointed authorized male / female agent, who

accept money / cheque / drafts against proper receipt.

OPERATING AGENCIES: These schemes are operated through about 1.54 Lakh post offices throughout the

country.

Public Provident Fund Scheme is also operated through about 8000 branches of public

Sector banks in addition to the post offices.

Deposit Schemes for Retiring Employees are operated through selected branches of

public sector banks only.

PROMOTION: National Savings Organization (NSO) is responsible for national level promotion of

these Schemes through publicity campaigns and advertisements in audio, video as

well print Media.

Through a large network of over 5 lakh small savings agents working under different

Categories viz:

o Standardized Agency System (SAS),

o MahilaPradhanKshetriyaBachatYojana (MPKBY),

o Public Provident Fund Agency Scheme,


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o Payroll Savings Groups,

o School Savings Banks (Sanchayikas)

I NSTITUTIONAL I NVESTMENT IN SMALL SAVINGS SCHEMES :

These schemes being primarily meant for small urban and rural investors; institutions

are not eligible to invest in major small savings schemes.

N.R.Is INVESTMENT IN SMALL SAVINGS SCHEMES:

The Non-Resident Indians (NRIs.) are not eligible to invest in small savings schemes

Including Public Provident Fund (PPF) and Deposit Schemes for Retiring Employees.

CURRENT SMALL SAVINGS SCHEMES WITH MAIN FEATURES:

POST OFFICE SAVINGS ACCOUNTS:

Who can open?

A single adult or two-three adults jointly,

A pensioner to receive/credit his monthly pension,

Group Accounts by Provident Fund, Superannuation Fund or Gratuity Fund,

Public Account by a local authority/body,

An employee, contractor, or agent of a government or of a government company or of

a university for depositing security amounts,

A Gazetted Officer or an officer of a government company or corporation or Reserve

Bank of India or a local authority in his official capacity.

A cooperative society or a cooperative bank for payment of pay, leave salary, pension

Contribution of government servants on deputation with such society or bank.

Where can be opened:

At any post office.

Deposits:

Account can be opened with a minimum of Rs. 20.

Maximum of Rupees One Lakh for single holder and Rs. Two lakhs for joint

Holders. If depositors have more than one account (single, pension or joint), the

Balances or shares of balances in all such accounts taken together should not exceed

Rs. One Lakh for each of the depositors.


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20

Maturity period / withdrawal:

There is no lock-in / maturity period prescribed.

Withdrawals: Any amount subject to keeping a minimum balance of Rs. 50 in simple

And Rs. 500 for cheque facility accounts.Interest:

Interest at the rate (s) as decided by the Central Government from time to time, is

Calculated on monthly balances and credited annually.

Interest rate applicable w.e.f. 1.3.2001 is 3.5 per cent / per annum for general

Public.

Pass Book:

Depositor is provided with a pass book with entries of all transactions duly stamped

by the post Office.

Silent Accounts:

An account, not operated during three complete years, shall be treated as Silent

Account.

A service charge @ Rs. 20 per year is charged on the last day of each year until it is

Reactivated.

In a silent account from which after deduction of service charge, the balance becomes

NIL, the account stands automatically closed.

Final closure / withdrawal:

Final withdrawal/ closure of account shall be allowed by Sub Postmaster/Extra

Departmental Sub/Branch Postmaster on obtaining sanction from Head Postmaster

Tax treatment:

Income tax relief is available on the amount of interest under the provisions of section

80L of the Income Tax Act.

POST OFF ICE TIME DEPOSIT ACCOUNTS :

Types of Accounts:

1 Year maturity,

2 Years maturity,

3 Years maturity &

5 Years maturity.


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Who can open?

A single adult or two adults jointly,

A pensioner to receive/credit his monthly pension,

Group Accounts by Provident Fund, Superannuation Fund or Gratuity Fund,Authority

Controlling funds of the Sanchayika.

Public Account by a local authority/body,

Institutional Accounts by the Treasurer of Charitable Endowments for India, Trust

Regimental Fund & Welfare Fund,

A cooperative society / cooperative bank or scheduled bank on behalf of its members,

Clients or employees Gazetted Officer in his official capacity.


At any post office.

Deposits:

A deposit with a minimum of Rs. 200 with no maximum limit.

Maturity period / withdrawal:

Withdrawals: The deposited amount is repayable after expiry of the period for which it is

made viz: 1 year, 2 years, 3 years or 5 years.

Interest:

Interest, calculated on quarterly compounding basis,is payable annually.

Interest rates applicable w.e.f. the 1st day of March, 2003 is:

Period of deposit Rate of Interest per cent/ per annum

1 YEAR 6.25

2 YEARS 6.50

3 YEARS 7.25

5 YEARS 7.50

Pass Book:

Depositor is provided with a pass book with entries of the deposited amount and other

particulars duly stamped by the post office.

Tax treatment:

Income tax relief is available on the amount of interest under the provisions of section

80L of Income Tax Act.


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Premature withdrawal:

Premature withdrawals from all types of Post Office Time Deposit accounts are permissible

after expiry of 6 months with certain conditions.

Post maturity interest:

Post maturity interest at the rate applicable to the post office savings accounts from

Time to time, is payable for a maximum period of 2 years.

POST OFF ICE RECURRING DEPOSIT ACCOUNTS:

Who can open?

A single adult or two adults jointly,

A guardian on behalf of a minor or a person of unsound mind; or

A minor who has attained the age of ten year, in his own name.


At any post office.

Maturity:

Period of maturity of an account is five years.

Deposits:

o Sixty equal monthly deposits shall be made in an account in multiples of Rs.5 subject to a

minimum of ten rupees.

Defaults in deposits:

Accounts with not more than four defaults in deposits can be regularized

Within a period of two months on payment of a default fee.

Account becomes discontinued after more than four defaults.

Interest & Repayment on maturity:

On maturity of the accounts opened on or after 1st March, 2003, an amount(Inclusive of

interest) of Rs. 728.90 is payable to a subscriber ofRupees: Ten denomination account.

Amount repayable, inclusive of interest, on an account of any other denomination shall be

proportionate to the amount specified above.

Pass Book:


particulars duly stamped by the post Office.

Premature closure:


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Premature closure of accounts is permissible after expiry of three years provided that interest

at the rate applicable to post office savings

Account shall be payable on such premature closure of account.

Continuation after maturity:

Permissible for a maximum period of five years.

POST OFF ICE MONTHLY INCOME ACCOUNTS:

Who can open?

A single adult or 2-3 adults jointly.

More than one account can be opened subject to maximum deposit limits.


At any post office.

Maturity:

Period of maturity of an account is six years.

Deposits:

Only one deposit shall be made in an account.

Deposit limits:

Minimum: rupees one thousand.

Maximum: rupees three lakhsin case of single and rupees six lakhsincase of joint account.

Deposits in all accounts taken together shall not exceed Rs. three lakhs in single account and

Rs. six lakhs in joint account.The depositors shares in the balances of joint accounts shall be

taken as one half or one third of such balance according as the account is held by 2 or 3

adults.

Interest:

Interest @ 8 per cent/ per annum, payable monthly in respect of the accounts opened on or

after the 1st March, 2003.

Pass Book:


particulars duly stamped by the post Office.

Premature closures:


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Premature closure facility is available after one year subject to condition.

Closure of account:

Account shall be closed after expiry of 6 years; bonus equal to ten per cent of deposits shall

be paid along with principle amount.

Income Tax relief:

Income tax relief is available on the interest earned as per limits fixed vide section 80L

Of Income Tax, as amended from time to time.

NATI ONAL SAVINGS CERTI F ICATE (VI I I I ssue):

Who can purchase:

An adult in his own name or on behalf of a minor,

A minor,

A trust,

Two adults jointly,

Hindu Undivided Family.

Maturity:

Period of maturity of a certificate is six Years.

Denomination / Deposit limits:

Certificates are available in denominations (face value) of Rs. 100, Rs.500, Rs. 1000, Rs.

5000 & Rs. 10,000.

There is no maximum limit for purchase of the certificates.

Interest/maturity value:

With effect from 1st March, 2003, Maturity value a certificate of Rs. 100 denomination is

Rs. 160.10.

Maturity value of a certificate of any other denomination shall be at proportionate rate.

Interest accrued on the certificates every year is liable to income tax but deemed to have

been reinvested.

Premature encashment:

Premature encashment of the certificate is not permissible except at a discount in the case of

death of the holder(s), forfeiture by a pledge and when ordered by a court of law.

Place of Encashment/discharge on maturity:

Can be encashed /discharged at the post office where it is registered or any other post

Office.


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Income Tax relief:

Income Tax rebate is available on the amount invested and interest accruing every

Year under Section 88 of Income tax Act, as amended from time to time.

Income tax relief is also available on the interest earned as per limits fixed vide section

80L of Income Tax, as amended from time to time.

KISAN VI KAS PATRA:

Who can purchase:

An adult in his own name or on behalf of a minor,

A minor,

A Trust,

Two adults jointly.

Where available :

Available for purchase/issue at Post Offices.

Maturity amount / period:

With effect from 1st March, 2003, invested amount doubles on maturityafter Eight Years and

Seven months.

Denomination / Deposit limits:

Certificates are available in denominations (face value) of Rs. 100, Rs.500, Rs. 1000, Rs.

5000, Rs. 10,000 & Rs. 50,000.

There is no maximum limit for purchase of the certificates.

Tax Benefits :

No income tax benefit is available under the scheme. However the deposits are exempt from

Tax Deduction at Source (TDS) at the time of withdrawal.

Premature encashment:

Premature encashment of the certificate is not permissible except at a discount in the case of

death of the holder(s), forfeiture by a pledge and when ordered by a court of law.

PUBLIC PROVIDENT FUND SCHEME:

Who can open account under the scheme:


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An individual in his own name,

On behalf of a minor of whom he is a guardian,

A Hindu Undivided Family.

Where to open an account:

At designated post offices throughout the country and

At designated branches of Public Sector Banks throughout the country.

Maturity period:

The account matures for closure after 15 years.

Account can be continued with or without subscriptions after maturity for block periods

of five years.

Nomination :

Nomination facility is available.

Deposit limits:

Minimum deposit required is Rs. 500 in a financial year.

Maximum deposit limit is Rs. 70,000 in a financial year.

Maximum number of deposits is twelve in a financial year.

Loans:

Loans from the amount at credit in PPF account can be taken after completion of one

Year from the end of the financial year of opening of the account and before completion of

the 5th year. The amount of withdrawal cannot exceed 40% of the amount that stood to credit

at the end of fourth year proceeding the year of withdrawal or at the end of preceding year

whichever is lower.

Transferability:

Account can be transferred from one post office to another post office,

From a bank to another bank; and

Interest:

Interest at the rate, notified by the Central Government from time to time, is calculated and

credited to the accounts at the end of each financial year.

Present rate of interest is eight per cent / per year since: 1st March, 2003.

Income Tax relief:

Income Tax rebate is available on the deposits made, under Section 88 of Income

Tax Act, as amended from time to time.

Interest credited every year is tax-free.


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28

Post Off ice Savings Schemes

Scheme Interest

payable, rates,

periodicity etc.

Investment

limits and

Denominations

Salient

features

including Tax

rebate

Post office

saving

account

4.0%per annum

on individual/

joint accounts

Minimum INR

50/-

Cheque

facility

available.

Interest tax

free.

Year post

office

Recurring

Deposit

Account

Rate of interest

8.40%.Maturity

value of a 5

years RD

account opened

or after 1-4-

2012 with

monthly deposit

of INR 10/-

shall be

INR746.51can

be continued for

another 5 years

on year to year

basis.

Minimum INR

10/-per month

or any amount

in multiplies of

INR 5/-. No

maximum limit.

One

withdrawal up

to 50% of the

balance

allowed after

one year. Full

maturity value

allowed on

R.D. Accounts

restricted to

that of INR.

50/-

denomination

in case of

death of

depositor

subject to

fulfillment of

certain

conditions. 6

& 12 months

advance

deposits earn

rebate.


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29

Post

Office

Time

Deposit

Account

Interestpayable

annually but

calculated

quarterly.

Period

Rate

1 yr. A/c

8.20%

2 yr. A/c

8.30%

3 yr. A/c

8.40%

5 yr. A/c

8.50%

w.e.f.

01.04.2012

Minimum INR

200/- and in

multiples

thereof. No

maximum limit.

Account may

be opened by

individual.

The

investment in

the case of 5

years TD

qualify for the

benefit of

Section 80C of

the Income

Tax Act, 1961

from 1.4.2007.

Post

Office

Monthly

aIncome

Account

Scheme

8.50% per

annum w.e.f.

01.04.2012

In multiples of

INR 1500/-

Maximum INR

4.5 lakhs in

single account

and INR 9

lakhs in joint

account.

Maturity

period is 5

years. Can be

prematurely

encashed after

one year with

some

conditions.

No Bonus is

admissible on

maturity in

respect of MISaccounts

opened on or

after

01.12.2011.

15 year

Public

Provident

Fund

8.80% per

annum w.e.f.

01.04.2012

Minimum INR.

500/-

Maximum INR.

1,00,000/- in a

Deposits

qualify for

deduction

from income
http://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspx


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Account financial year.

Deposits can be

made in

lumpsum or in

12 installments.

under Sec.

80C of IT Act.

Interest is

completely

tax-free.

Withdrawal is

permissible

every year

from 7th

financial year.

Loan facility

available from

3rd Financial

year. No

attachment

under court

decree order

National

Savings

Certificate

(VIII

Issue)

Rate of interest

8.60%.

Maturity value

of a certificate

of INR.100/-

purchased on or

after 1.4.2012

shall be INR.

152.35 after 5

years.

Minimum INR.

100/- No

maximum limit

available in

denominations

of INR. 100/-,

500/-, 1000/-,

5000/- & INR.

10,000/-.

A single

holder type

certificate can

be purchased

by an adult for

himself or on

behalf of a

minor or to a

minor.

Deposits

qualify for taxrebate under

Sec. 80C of IT

Act.

The interest

accruing

annually but

deemed to be

reinvested will
http://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/PPF.aspx


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also qualify for

deduction

under Section

80C of IT Act.

National

Savings

Certificate

(IX Issue)

Rate of interest

8.90%.

Maturity value

of a certificate

of INR.100/-

purchased on or

after 1.4.2012

shall be INR.

238.87 after 10

years.

Minimum INR.

100/- No

maximum limit

available in

denominations

of INR. 100/-,

500/-, 1000/-,

5000/- & INR.

10,000/-.

A single

holder type

certificate can

be purchased

by an adult for

himself or on

behalf of a

minor or to a

minor.

Interest on

these

certificates

shall be liable

to tax under

the Income-

Tax Act, 1961

(43 of 1961,

on the basis of

annual accrual

specified in

rule15, but no

tax shall bededucted at the

time of

payment of

discharge

value.

Senior

Citizen

Savings

9.30% per

annum, payable

from the date of

There shall be

only one

deposit in the

Maturity

period is 5

years. A
http://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/SCSS.aspxhttp://www.indiapost.gov.in/SCSS.aspxhttp://www.indiapost.gov.in/SCSS.aspxhttp://www.indiapost.gov.in/SCSS.aspxhttp://www.indiapost.gov.in/SCSS.aspxhttp://www.indiapost.gov.in/SCSS.aspxhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IX


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Scheme deposit of 31st

March/30th

Sept/31st

December in

the first

instance &

thereafter,

interest shall be

payable on 31st

March, 30th

June, 30th Sept

and 31st

December.

account in

multiple of

INR.1000/-

maximum not

exceeding

rupees fifteen

lakh. account in

multiple of

INR.1000/-

maximum not

exceeding

rupees fifteen

lakh.

depositor may

operate more

than a account

in individual

capacity or

jointly with

spouse. Age

should be 60

years or more,

and 55 years

or more but

less than 60

years who has

retired on

superannuation

or otherwise

on the date of

opening of

account

subject to the

condition that

the account is

opened within

one month of

receipt of

retirement

benefits.

Prematureclosure is

allowed after

one year on

deduction of

1.5% interest

& after 2 years

1% interest.

TDS is
http://www.indiapost.gov.in/SCSS.aspxhttp://www.indiapost.gov.in/SCSS.aspxhttp://www.indiapost.gov.in/SCSS.aspx


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deducted at

source on

interest if the

interest

amount is

more than INR

10,000/- p.a.

The

investment

under this

scheme qualify

for the benefit

of Section 80C

of the Income

Tax Act, 1961

from 1.4.2007.

Post off ice Recurr ing Deposits VS Bank Recurr ing Deposits

A post office recurring deposit account (RDA) is similar to a recurring deposit in a bank,

where you can invest a fixed amount on a monthly basis. The postal Recurring Deposit

Account has a fixed tenure of five years.

These deposits accumulate money at an annual fixed rate of interest of 8 percent. The interest

is compounded on a quarterly basis. The minimum investment in a post office Recurring

Deposit Account is Rs 10 and there is no prescribed upper limit. For example, if you invest

Rs 100 every month in 60 installments, you will earn a sum of Rs 7,289 after 5 years.

Banks, however, offer a flexible time period on their recurring deposits. You can open a

Recurring Deposit Account for a minimum period of 6 months, and thereafter in multiples of

3 months up to a maximum period of 10 years.

In banks. Each individual can start a recurring deposit with State Bank OF India(SBI) for a

monthly installments of Rs 100 whereas ICICI Bank has kept its minimum deposit limit at

Rs.500.


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will be paid interest at a lower rate than that was contracted.

A postal time deposit fetches annual interest rates in the range of 6.25 to 7.5 per cent. A bank

FD offers annual interest rates in the range of 3.75 per cent to 7.27 per cent. Senior citizens

enjoy the privilege of earning higher interest rates on bank FDs, ranging from 4.25 per cent

and 7.95 per cent.

In the post-office scheme your investment grows at a pre-determined rate with no risk as it is

backed by the government.


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ANALYSIS BASED ON SURVEY OF WOMENS PERCEPTION TOWARDS POST

OFF ICE SAVINGS WITH REFERENCE TO KASARAGOD DISTRICT

TABL E NO. 4.1.

TABLE SHOWING AGE-WISE CLASSIFI CATION OF INVESTORS:

Scale Frequency Percent

20-30 32 32.0

30-40 38 38.0

40-50 15 15.0

50-60 11 11.0

60 and above 4 4.0

Total 100 100.0

Char t No. 4.1. : Char t showing age-wise classif ication of investors

Interpretation:

Analysis of Table No. 4.1 reveals that a large portion of women investors (38%) belong to the age

group of 30-40, 32 % of the investors belong to the age group of 20-30, 15% of the investors belong

to the age group of 40-50 12% of the investors belong to the age group of 50-60 and a negligible

number of investors (4%) belong to the age group of 60 and above. The above table also reveals that

the large majority of investors (85%) belong to the age group of 20-50. This is an indication that

0

50

100

150

20-30 30-40 40-50 50-60 60 and

above

Total

Chart Title

Frequency Percent


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investors in the age group of 20-50 have a greater liking for investment in post office compared to the

women investors in the age group of above 50.s

TABLE NO. 4.2.

TABLE SHOWING EDUCATIONAL QUALI FI CATION OF I NVESTORS:

Qualification No. of Respondents Percent

Below SSLC 9 9

SSLC 20 20

Plus Two 19 19

Graduation 35 35

PG and above 13 13Others 4 4

Total 100 100

Chart No.4.2. : Chart showing educational quali fi cations of i nvestors.

Interpretation:

It is observed from the Table No.4.2. That 35% of the investors are graduates, 9% of the investors are

Below SSLC, 20% of the investors are with SSLC,19% of the investors are with Plus Two and a very

0102030405060708090

100

Chart Title

No. of Respondents Percent


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few investors (13%) are with SSLC qualification are remaining investors are with other studies.

Educational qualification of investors is an added advantage in making good investment decision.

TABLE NO. 4.3.

TABLE SHOWING MARITAL STATUS OF INVESTORS:

Frequency Percent

Married 65 65.0Unmarried 25 25.0

Widower/separated 10 10.0

Total 100 100.0

Chart No.4.3. : Chart showing mar ital status of investors.

Frequency

Percent

0

20

40

60

80

100

Frequency Percent


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Interpretation:

The above graph shows that 65% of the respondents are married women, 25% of the

respondents are unmarried womens.10% of the respondents are widowers or separated

women.

TABLE NO. 4.4.

TABLE SHOWING OCCUPATION OF INVESTORS:

Frequency Percent

Government Sector 11 11.0

Business 7 7.0

Agriculture 6 6.0

Private Sector 27 27.0

House Wife 36 36.0

Others 13 13.0

Total 100 100.0

Chart No.4.4. : Chart showing occupation of investors.

0

20

40

60

80

100

120

0

20

40

60

80

100

120

Frequency Percent


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Interpretation:

The above graph shows that 11% of the respondents are government employees who have

maintained savings in post office, 7% of the respondents were carrying on their own

business.6% of the respondents were doing agriculture, 27% of the respondents are privateemployees as many of the people are working for privately owned organisations,36%

respondents are house wife and rest were into other occupations.

TABLE NO. 4.5.

TABLE SHOWING MONTHLY INCOME OF INVESTORS:

Income Frequency Percent

Below 5000 31 31.0

5000-10000 25 25.0

10000-15000 31 31.0

15000-20000 11 11.0

More than 20000 2 2.0

Total 100 100.0

Chart No.4.5. : Chart showing monthly income of i nvestors.

I nterpretation:

Frequency

Percent

0

2040

60

80

100

Chart Title

Frequency Percent


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By conducting survey we came to know about among 100 respondents, 31% respondents

have a monthly income which is below Rs.5000, 25% Respondents earn between 5000-

10000, 31% respondents earn between 10000-15000, 11% respondents are between 15000-

20000& 2% respondents are more than 20000. So here maximum Respondents are fall in the

category below 5000.

TABLE NO. 4.6.

TABLE SHOWING MONTHLY SAVING AMOUNT OF INVESTORS:

Frequency Percent

Less than 1000 40 40.0

1000-5000 31 31.0

5000-10000 25 25.0

More than 10000 4 4.0

Total 100 100.0

Chart No.4.6. : Chart showing month ly saving amount of i nvestors.

Interpretation:

0

20

40

60

80

100

120

Less than 1000 1000-5000 5000-10000 More than 10000 Total

Frequency Percent


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By conducting survey we came to know about the minimum amount of savings made by the

Respondents 40% of respondents save Less than1000, 31%respondents save between 1000-

5000, & 25% of respondents save between 5000-10000, & 4% of respondents save above

10000.So here maximum Respondents are fall in the category Less than1000.

TABLE NO. 4.7.

TABLE SHOWING TERM OF THE INVESTMENT:

Option Frequency Percent

Long Term 44 44.0

Short Term 27 27.0

Medium Term 29 29.0

Total 100 100.0

Char t No.4.7. : Char t showing term of investment of the investors.

I nterpretation:

0

20

40

60

80

100

120

Long Term Short Term Medium Term Total

Frequency Percent


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From the above graph we can infer that most of the people prefer to invest their money for

long term purpose i.e., 44% and 27% of the respondents prefer to invest for short term

purpose and 29% for medium term purpose.

TABLE NO. 4.8.

TABLE SHOWING INVESTORS IN POST OFF ICE SAVING:

Frequency Percent

Yes 100 100

No 0 0

Total 100 100.0

Char t No.4.8. : Chart showing investors in post of fi ce saving.

0

20

40

60

80

100

120

Yes No Total

Frequency Percent


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Interpretation:

From the above graph we can infer that most of the people invest in post office i.e., 100%

and rest of them not having post office.

TABL E NO. 4.9.

TABLE SHOWING PREFEREBLE SCHEMES OF TH E I NVESTORS.

Options Frequency Percent

Recurring Deposit Scheme 7 7.0

Time Deposit Scheme 4 4.0

National Saving Certificate 25 25.0

Public Provident Scheme 4 4.0

Senior Citizens Saving Scheme 8 8.0

Saving Account Scheme 13 13.0

Monthly Saving Scheme 38 38.0

Others 1 1.0

Total 100 100.0

Char t No.4.9. : Char t showing preferable schemes of the investors.


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I nterpretation:

From the above graph we can infer that 38% respondents are preferring Monthly saving

scheme,13% of the respondents are preferring saving account scheme,8% respondents are

preferring Senior citizens scheme,4% are preferring Public provident schemes,25% are

prefers National saving certificate,4% prefers Time deposit schemes,7% prefers Recurring

Deposit Schemes and rest of them prefers others.

TABLE NO. 4.10.

TABLE SHOWING OBJECTIVE OF THE INVESTORS WHILE INVESTING IN POST

OFFICE.


Tax benefit 17 17.0

Future Safety 49 49.0

Childrens Education 25 25.0

Convenience 7 7.0

Others 2 2.0

Total 100 100.0

Char t No.4.10. : Chart showing objective of the investors whi le investing in post off ice.

0

20

40

60

80

100

120

Frequency Percent


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Interpretation:

It is observed from Table No. 4.10. that a large proportion of investors (49%) invest in post

office for future safety, 25% of the investors invest in post office for childrens education and

17% of the investors invest in post office because it is beneficial from tax point of view, 7%

of the investors main objective while investing in post office is convenience and remaining

2% of the investors invest for other purposes.

TABLE NO. 4.11.

TABLE SHOWING TERM IN WHICH INVESTORS USE FOR TRANSACTION PURPOSE


Occasionally 25 25.0

Frequently 48 48.0

Often 26 26.0

Never 1 1.0

Total 100 100.0

Char t No.4.11. : Chart showing term in which investors use for transaction pur pose

0

20

40

60

80

100

120

Tax benefit Future Safety Childrens

Education

Convenience Others Total

Frequency Percent


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Interpretation:

From the above graph we can infer that most of the people (48%) invest their money in post

office frequently and 25% of the respondents invest their money occasionally, 26%

respondents invest their money often and rest of the 1% never invested their money in post

office saving schemes.

TABLE NO. 4.12.

TABLE SHOWING CONSIDERATION OF INVESTORS WHILE INVESTING IN POST

OFFICE.

Frequency Percent

Past Performance 9 9.0

Rate of interest 5 5.0

Safety 64 65.0

Investment Amount22 21.0

Total 100 100.0

0

20

40

60

80

100

120

Occasionally Frequently Often Never Total

Frequency Percent


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48

4.12. Char t showing considerati on of investors whi le investing in post off ice.

Interpretation:

The above table clearly indicates that among the 100 total respondents, 10% of the

respondents are considering past performance of the post office saving, 6% of the

respondents are considering rate of interest,62% of the respondents are looking for safety,

22% of the respondents are considering investment amount.

TABLE NO. 4.13.

TABLE SHOWING SOURCES WHICH PROVIDES INFORMATION RELATI NG TO POST

OFFICE

Frequency Percent

Friends 19 19.0

Relatives 48 48.0

Bank 8 8.0

Others 25 25.0

Total 100 100.0

0

50

100

150

200

250

Past

Performance

Rate of

interest

Safety Investment

Amount

Total

Frequency Percent


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4.13. Chart showing sources which provides information r elati ng to post off ice

Interpretation:

From the above table it shows that 19% of the respondents got the information about post

office saving schemes from their friends, 48% respondents got information from relatives,

8% of them gathered information from Bank and rest of them (25%) got information from

other sources.

TABLE NO. 4.14.

TABLE SHOWING SUITABLE POST OFF ICE SCHEMES AS PER INVESTORS OPINION

Frequency PercentRecurring Deposit Scheme 4 4.0

Time Deposit Scheme 7 7.0

National Saving Certificate 24 24.0

Public Provident Schemes 5 5.0

Senior Citizens Scheme 4 4.0

Saving Account Scheme 11 11.0

Monthly Saving Scheme 45 45.0

0

20

40

60

80

100

120

Friends Relatives Bank Others Total

Frequency Percent


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Total 100 100.0

4.14. Chart showing suitable post office schemes as per investors opinion

I nterpretation:

From the above graph we can infer that 45% respondents are suggesting that Monthly saving

scheme is the most useful scheme to the investors,7% of the respondents are suggesting Time

deposit scheme,24% respondents are suggesting National saving certificate,5% are

Suggesting Public provident schemes,4% are prefers Senior Citizens saving Scheme,11%

prefers Saving Account schemes and rest of them prefers Recurring Deposit Schemes.

TABLE NO. 4.15.

TABLE SHOWING PROBLEMS FACING BY I NVESTORS WHILE INVESTING IN POST

OFFICE.

Frequency Percent

Yes 42 42.0

No 58 58.0

Total 100 100.0

4.15. Chart showing problems facing by investors whi le investing in post off ice.

0

20

40

60

80

100

120

0

20

40

60

80

100

120

Frequency Percent


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Others 2 5.0

Total 42 100.0

4.16. Char t showing kind of problems facing by investors whi le investing in post off ice.

Interpretation:

From the above graph we can infer that 31% of the respondents are facing problems like lack

of proper guidance in post office saving and 14% of the respondents are facing poor

assistance by employers, 26% of the respondents are facing inconvenient problems,14% of

the respondents are facing time consuming problems, 10% of the respondents are facing

employees Nonresponsive and rest of them are facing other problems.

TABLE NO. 4.17.

TABLE SHOWING INVESTORS WHO TH INKS POST OFF ICE SAVING IS BETTER THAN

OTHER SAVINGS

Frequency Percent

Yes 65 65.0

No 35 35.0

Total 100 100.0

0

20

40

60

80

100

120

Frequency Percent


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4.17. Char t showing i nvestors who th inks post off ice saving i s better than other savings

Interpretation

From the above graph we can infer that 65% of the respondents are thinking that post office

saving is better than other saving and rest of the 35% of the respondents are thinking that it is

not better than other savings.

TABLE NO. 4.18.

TABLE SHOWING INVESTORS WHO SATI SFI ED WITH TH E PERFORMANCE OF POST

OFFI CE SCHEMES.

Frequency Percent

Yes 68 68.0

No 32 32.0

Total 100 100.0

0

20

40

60

80

100

120

Yes No Total

Frequency Percent


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4.18. Char t showing investors who satisfied with the performance of post off ice schemes.

Interpretation:

The above table clearly indicates that among respondents 68% of the respondents are

satisfied with the performance of post office saving schemes and 32% rest of the respondents

are not satisfied with the performance of post office schemes.

TABLE NO. 4.19.

TABLE SHOWING PERFORMANE OF POST OFF ICE SAVINGS IN TERMS OF RETURNS


Very poor 12 12.0

Poor 13 13.0

No opinion 36 36.0

Good 30 30.0

Excellent 9 9.0

0

20

40

60

80

100

120

Yes No Total

Chart Title

Frequency Percent


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Total 100 100.0

4.19. Char t showing performance of post off ice savings in terms of retur ns

Interpretation:

The above table clearly indicates that among the respondents 12% of the respondents are

shared their opinion regarding post office as very poor and 13% of the respondents are shared

as poor, 36% of the people are shared as no opinion about that, 30% of the people told that

post office good for all to save and remaining 9% are told it is very excellent.

TABLE NO. 4.20.

TABLE SHOWING LEVEL OF SATI SFACTION TOWARDS THE RETURNS OFFERED BY

POST OFFI CE SCHEMES.


Extremely Dissatisfied 5 5.0

Dissatisfied 16 16.0

Dissatisfied Nor Satisfied 26 26.0

0

20

40

60

80

100

120

0 1 2 3 4 5 6 7

Frequency Percent


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57

O I = Observed frequency

Ei = Expected frequency

Ei = Rt * Ct/Gt

Rt = Row total

Ct = Column total

Gt = Grand total

d.f (or) r = (r-1) (c-1)

= (5-1) (5-1)

= 4*4

d.f = 16

Tabulated value of X20.05d.f at 5% level of significance is 26.3

Conclusion:

Since the calculated value is less than the tabulated value, null Hypothesis (H0) is accepted.

So, we conclude that there is no association between the classifications based on Occupation

and the classification based on the objective of the investors.

Test-2

.Null Hypothesis (H0)

There is no association between the Age and level of satisfaction of the respondents.

Alternative Hypothesis (H1)

There is association between Age and level of satisfaction of the respondents.

Chi-square Test

O I = Observed frequency

Ei = Expected frequency

Ei = Rt * Ct/Gt

Rt = Row total

Ct = Column tota

Gt = Grand total

sd.f (or) r = (r-1) (c-1)

= (5-1) (5-1)


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58

= 4*4

d.f = 16

Tabulated value of X2 0.05 d.f at 5% level of significance is 26.3

Conclusion:

Since the calculated value is less than the tabulated value, null Hypothesis (H0) is accepted.

So, we conclude that there is no association between the classifications based on Age and the

classification based on the level of satisfaction of the investors.

SUMMARY OF F INDINGS

1) The study entitled Study on the womens perception towards post office saving

schemes with reference to Kasaragod District has been undertaken to know the

perception and satisfaction of small investors towards Post office saving schemes.

2)

Out of the 100 investors large portion of women investors (38%) belong to the age

group of 30-40, 32% of the investors belong to the age group of 20-30, 15% of the

investors belong to the age group of 40-50, 11% of the investors belong to the age


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group of 50-60 and a negligible number of investors (4%) belong to the age group of

60 and above. This is an indication that investors in the age grou

postofficce savings habit

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