1

I NTRODUCTI ON
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.

OBJ ECTI VES 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.
2

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 the
post 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 present 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
3

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 MI TATI ONS OF THE STUDY:
The present study A Study on Womens Perception towards Post Office Saving with
reference to Kasaragod District is based on the survey information collected from
4

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.
Non availability of confidential matter is also one of the limitations of the report.















5

BACKGROUND OF THE TOPI C
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.
6

CONCEPTUAL FRAMEWORK
Perception is the organization, identification and interpretation of sensory information in
order to represent and understand the environment. All perception involves signals in
the nervous 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
by learning, memory and expectation. 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.
A facility in charge of sorting, processing, and delivering mail to recipients. 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 India
and are available at all post offices in the country. NSC serves as a long term saving option
7

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 SCENARI O
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.
8

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.
REVI EW 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 those
of 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.

9

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.









10

ORGANI SATI ONAL PROFI LE
POSTAL SERVI CES I N I NDI A
For more than 150 years, the Department of Posts (DoP) has been the backbone of
theCountrys communication 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
11

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.

12

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.
History of I ndian post
English East I ndia Company, 16121857
The English 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 as JamidaraPratha) on 24 March 1766 in West
Bengal. The system was reorganized and made available for public use on 31 March 1774, in
1778 in Madras and 1792 in Bombay when Warren Hastings was Governor-General of India.
The first general post office operated by the EIC opened in Calcutta at that time, and a
13

Postmaster-General was appointed in 1781.The Madras and Bombay 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 Office 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 Office 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 was Patiala in 1884) had agreements with the Post Office of India to
provide service within their territories with overprinted stamps issued by the Post Office.
14

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 the Bombay Presidency or the North-Western Provinces), the latter
attended to the smaller provinces (such as Ajmer-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.
First Telegraph Act for India, 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
public telegram 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 the Indian Telegraph Department were Rs. 14 lakh and
the capital expenditure until the end of the year totaled Rs. 65 lakh.




15

Posts and the British 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 in Allahabad. In 1876, British India became the first non-
founding member of the General 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 the Bombay Presidency). In Madras 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 15
kilograms (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.
16

Post-independence service
Since Indian 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 SAVI NGS SCHEMES OF THE GOVERNMENT OF I NDI A

I NTRODUCTI ON
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.
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
18

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.
OBJ ECTI VE:
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 SAVI NGS 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.
OPERATI NG 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.
PROMOTI ON:
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,
19

o Payroll Savings Groups,
o School Savings Banks (Sanchayikas)

I NSTI TUTI ONAL I NVESTMENT I N SMALL SAVI NGS 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 OFFI CE SAVI NGS 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.
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 OFFI CE TI ME DEPOSI T ACCOUNTS :

Types of Accounts:
1 Year maturity,
2 Years maturity,
3 Years maturity &
5 Years maturity.
21

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.
Where can be opened:
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.
22

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 OFFI CE RECURRI NG DEPOSI T 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.
Where can be opened:
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:
Depositor is provided with a pass book with entries of the deposited amount and other
particulars duly stamped by the post Office.
Premature closure:
23

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 OFFI CE MONTHLY I NCOME ACCOUNTS:

Who can open?
A single adult or 2-3 adults jointly.
More than one account can be opened subject to maximum deposit limits.
Where can be opened:
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:
Depositor is provided with a pass book with entries of the deposited amount and other
particulars duly stamped by the post Office.
Premature closures:
24

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 SAVI NGS CERTI FICATE (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.
25

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.



KI SAN 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.

PUBLI C PROVI DENT FUND SCHEME:

Who can open account under the scheme:
26

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.

27


28

Post Office 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.
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 MIS
accounts
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
30

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 tax
rebate under
Sec. 80C of IT
Act.
The interest
accruing
annually but
deemed to be
reinvested will
31

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 be
deducted 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
32

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.
Premature
closure is
allowed after
one year on
deduction of
1.5% interest
& after 2 years
1% interest.
TDS is
33

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 office Recurring Deposits VS Bank Recurring 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.
34


An individual can open an RDA account with a post office individually or one in a joint form
with another investor, or a guardian on behalf of the minor who has attained the age of 10
years can open an RDA account in his/her own name.
The advantage with post-office deposits is that it offers a fixed rate of return for the duration
of the deposit, while banks constantly review their recurring deposit rates.
However, the disadvantage with post office savings is that that in the age of convenience
banking, you will have to visit the post office every month. In case of banks, the amount is
automatically debited from your account. Premature withdrawal, however, cannot earn you
desired returns.
In the case of banks, premature closure of an RDA will attract a penal interest. This means
the depositor will get interest around 1 per cent less than the prevailing rate. It will certainly
be higher than the 3.5 per cent paid by post office.
Post office Time deposits vs. Banks Fixed Deposits
Just like banks fixed deposits (FDs), post office time deposits are meant for those investors
who want to deposit a lump sum for a fixed period.
Time Deposits are of 1 year, 2 year, 3 year and 5 year tenures. The minimum investment
should be Rs 200 and its multiples. The tenure of bank fixed deposits is flexible, with periods
ranging from 15 days to 10 years but the minimum amount is as high as Rs 10,000.
In case of postal time deposits, the account can be closed after 6 months but before one year
of opening the account. On such closure, the amount invested is returned without interest. If a
time deposit of two or three years is withdrawn prematurely, post office will pay interest only
for the completed year or years.
For example, a fixed deposit for two years is withdrawn after 20 months; interest will be paid
only for the one full year completed. The depositor will lose interest for the remaining 8
months.
If a bank FD is closed before completing the original term of the deposit, banks have the
discretion to charge penal interest. If a bank decides to charge penal interest, the depositor
35

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.

















36



ANALYSIS BASED ON SURVEY OF WOMENS PERCEPTI ON TOWARDS POST
OFFI CE SAVI NGS WI TH REFERENCE TO KASARAGOD DI STRI CT
TABLE NO. 4.1.
TABLE SHOWI NG AGE-WI SE CLASSI FI CATI ON OF I NVESTORS:
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

Chart No. 4.1. : Chart showing age-wise classification 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
37

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 SHOWI NG EDUCATI ONAL QUALI FI CATI ON 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 13
Others 4 4
Total 100 100


Chart No.4.2. : Chart showing educational qualifications of investors.


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
0
10
20
30
40
50
60
70
80
90
100
Chart Title
No. of Respondents Percent
38

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 SHOWI NG MARI TAL STATUS OF I NVESTORS:
Frequency Percent
Married 65 65.0
Unmarried 25 25.0
Widower/separated 10 10.0
Total 100 100.0


Chart No.4.3. : Chart showing marital status of investors.





Frequency
Percent
0
20
40
60
80
100
Frequency Percent
39

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 SHOWI NG OCCUPATI ON OF I NVESTORS:
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
40

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 private
employees 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 SHOWI NG MONTHLY I NCOME 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 investors.


I nterpretation:
Frequency
Percent
0
20
40
60
80
100
Chart Title
Frequency Percent
41

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 SHOWI NG MONTHLY SAVI NG AMOUNT OF I NVESTORS:
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 monthly saving amount of investors.


Interpretation:
0
20
40
60
80
100
120
Less than 1000 1000-5000 5000-10000 More than 10000 Total
Frequency Percent
42

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 SHOWI NG TERM OF THE I NVESTMENT:
Option Frequency Percent
Long Term 44 44.0
Short Term 27 27.0
Medium Term 29 29.0
Total 100 100.0

Chart No.4.7. : Chart 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
43

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 SHOWI NG INVESTORS I N POST OFFI CE SAVI NG:
Frequency Percent
Yes 100 100
No 0 0
Total 100 100.0


Chart No.4.8. : Chart showing investors in post office saving.



0
20
40
60
80
100
120
Yes No Total
Frequency Percent
44

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.







TABLE NO. 4.9.
TABLE SHOWI NG PREFEREBLE SCHEMES OF THE 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

Chart No.4.9. : Chart showing preferable schemes of the investors.
45


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 SHOWI NG OBJ ECTI VE OF THE I NVESTORS WHI LE I NVESTI NG I N POST
OFFI CE.
Option Frequency Percent
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

Chart No.4.10. : Chart showing objective of the investors while investing in post office.
0
20
40
60
80
100
120
Frequency Percent
46


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 SHOWI NG TERM I N WHI CH I NVESTORS USE FOR TRANSACTI ON PURPOSE
Option Frequency Percent
Occasionally 25 25.0
Frequently 48 48.0
Often 26 26.0
Never 1 1.0
Total 100 100.0

Chart No.4.11. : Chart showing term in which investors use for transaction purpose
0
20
40
60
80
100
120
Tax benefit Future Safety Childrens
Education
Convenience Others Total
Frequency Percent
47



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 SHOWI NG CONSI DERATI ON OF I NVESTORS WHI LE I NVESTI NG I N POST
OFFI CE.
Frequency Percent
Past Performance 9 9.0
Rate of interest 5 5.0
Safety 64 65.0
Investment Amount

22 21.0
Total 100 100.0
0
20
40
60
80
100
120
Occasionally Frequently Often Never Total
Frequency Percent
48


4.12. Chart showing consideration of investors while investing in post office.

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 SHOWI NG SOURCES WHI CH PROVI DES I NFORMATI ON RELATI NG TO POST
OFFI CE
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
49

4.13. Chart showing sources which provides information relating to post office


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 SHOWI NG SUI TABLE POST OFFI CE SCHEMES AS PER I NVESTORS OPI NI ON
Frequency Percent
Recurring 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
50

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 SHOWI NG PROBLEMS FACI NG BY I NVESTORS WHI LE I NVESTI NG I N POST
OFFI CE.
Frequency Percent
Yes 42 42.0
No 58 58.0
Total 100 100.0

4.15. Chart showing problems facing by investors while investing in post office.

0
20
40
60
80
100
120
0
20
40
60
80
100
120
Frequency Percent
51




Interpretation:
From the above graph we can infer that 42% of the respondents are facing some kind of
problems in post office saving and rest of them are not facing any problems in post office.





TABLE NO. 4.16.
TABLE SHOWI NG KI ND OF PROBLEMS FACI NG BY I NVESTORS WHILE I NVESTI NG I N
POST OFFI CE.
Frequency Percent
Employees nonresponsive 4 10.0
Time consuming 6 14.0
Inconvenient hours 11 26.0
Poor assistance by employers 6 14.0
Lack of proper guidance 13 31.0
0
20
40
60
80
100
120
0
20
40
60
80
100
120
Yes No Total
Chart Title
Frequency Percent
52

Others 2 5.0
Total 42 100.0

4.16. Chart showing kind of problems facing by investors while investing in post office.

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 SHOWI NG I NVESTORS WHO THI NKS POST OFFI CE SAVI NG I S BETTER THAN
OTHER SAVI NGS
Frequency Percent
Yes 65 65.0
No 35 35.0
Total 100 100.0

0
20
40
60
80
100
120
Frequency Percent
53

4.17. Chart showing investors who thinks post office saving is 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 SHOWI NG I NVESTORS WHO SATI SFIED WI TH THE 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
54

4.18. Chart showing investors who satisfied with the performance of post office 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 SHOWI NG PERFORMANE OF POST OFFI CE SAVI NGS I N TERMS OF RETURNS
Option Frequency Percent
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
55

Total 100 100.0

4.19. Chart showing performance of post office savings in terms of returns

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 SHOWI NG LEVEL OF SATI SFACTI ON TOWARDS THE RETURNS OFFERED BY
POST OFFI CE SCHEMES.
Option Frequency Percent
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
56

Satisfied 47 47.0
Extremely Satisfied 6 6.0
Total 100 100.0

4.20. Chart showing level of satisfaction towards the returns offered by post office schemes.

Interpretation
The above table and chart shows that among respondents 5% of the people extremely
dissatisfied with post office saving, 16% of the people were dissatisfied,26% of the
respondents are Dissatisfied nor satisfied with Post office saving and 47% of the people were
satisfied and remaining 6% of the people are extremely satisfied.

TESTI NG OF HYPOTHESI S
CHI -SQUARE TEST:
Test 1:
Null Hypothesis (H0):
There is no association between the Occupation and objective of the investors.
Alternative Hypothesis (H1):
There is association between Occupation and objective of the investors.
Chi-square Test
0
10
20
30
40
50
60
70
80
90
100
Extremely
Dissatisfied
Dissatisfied Dissatisfied
Nor
Satisfied
Satisfied Extremely
Satisfied
Total
Frequency Percent
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)
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 FI NDI NGS

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
59

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 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.

3) Out of 100 investors 30% 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 few investors (20%) are with SSLC qualification are remaining
investors are with other studies. Educational qualification of investors is an added
advantage in making good investment decision.

4) Among the respondents most of them are married (65%) and they are housewives
(34%) investing minimum amount for the long term purposes.

5) Out of 100 investors,31% respondents have a monthly income which is below
Rs.5000, 25% Respondents are between 5000-10000, 31% respondents are between
10000-15000, 11% respondents are between 15000-20000& 2% respondents are more
than 20000.

6) Among the 100 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.Because most of them are housewives and they are
not earning much.

7) From the study it can find that most of the people invest in post office i.e., 100% and
rest of them not having post office saving.

8) Out of the post office saving investors 38% respondents are preferring Monthly
saving scheme, because low investment amount per month is suitable to the
investors.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.
60


9) From the study it can find that the main objectives of the investors while investing are
tax benefit (17%), future safety (49%), childrens education (25%), convenience (7%)
and others (2%).

10) Among the respondents it can find that the main source of data relating to post offices
is relatives, agents and friends.

11) Out of the investors most of them are investing their money frequently in post office
(48%).While investing investors are mainly considering safety (62%), the investment
amount (22%),past performance (10%), rate of interest (6%), and others(2%).

12) According to the investors opinion monthly saving scheme is most suitable to the
investors (45%) and then it follows other schemes.

13) Among the investors most of them are facing some kind of problems like employees
non responsive (10%), time consuming (14%), inconvenient hours (26%), poor
assistance by employers (14%), lack of proper guidance (30%) and others (5%).

14) Out of the investors 53% are satisfied with the performance of the post office saving
schemes and returns from that.


SUGGESTI ONS

1) An effort should be made to create more awareness among post office saving women
investors through regular customers meet and through more advertisements.

2) The details of transactions of investment amount to investors and send the information
regarding different schemes, changing interest rate etc are to be communicated
periodically through SMS, E-mail etc.

61

3) In addition to regular returns and proper safety of investments, investors confidence
towards the investment amount is also very important. Hence they should develop
effective mechanism to boost investors confidence.

4) As a majority of Indian population lives in rural areas, efforts should be made to take
post office saving to rural areas by conducting awareness programs.

5) Small investors mainly looking for tax benefits with good returns, the government
should take steps to give maximum tax benefits to post office saving investors to
encourage more and more investments in this direction.

6) In addition to this they should try to provide better customer services and they should
try to aware about the changes in trends and technology.

CONCLUSI ON
The present study looks at investors perception and their satisfaction towards post office
saving schemes with reference to Kasaragod district. Perception of investors about saving
schemes will have a significant impact on the saving behavior of people. It is clear that
perception of investors has an impact on their risk-bearing capacity and range of investment.
It is also stated that perception is influenced by age, experience, and tax payment and it has
an association with saving motives and behavior of individuals.
Post office saving schemes is designed to provide safe and attractive investment options to
the public and at the same time to mobilize resources for development.The post office time
deposits scheme fall under the category of fixed deposits and available at all the post offices
throughout India. The investors are not entitled to receive any amount t owar ds
i nt er est s on a mont hl y basi s but r ecei ve a l ump sum amount as interest
when the scheme matures. The interest rate in case of these schemes is
directly proportional to the tenure of the scheme. The minimum amount required to
start the post office time deposits scheme is onl y Rs . 200 but t her e i s no s et
l i mi t f or t he maxi mum amount . The scheme al l ows nomi nat i on f aci l i t y
and t he t enur e of t he s cheme r anges f r om 1 - 5 year s. The r at e of interest
varies according to the tenure of deposit.
62

From my study, it shows that if people get good service and good return during their
investment tenure, they will have positive perception, otherwise negative perception will
persist. Post Office Saving is the best form of savings schemes which provide substantially
lesser risks of suffering losses.

QUESTIONNAIRE
Dear Sir/Madam,
I Deepa V pursuing final year MBA in A.J .Institute of Management. As a part of MBA
program I have undertaken a project work on A Study on Womens Perception towards
Post Office Saving with reference to Kasaragod District. I nowrequest you to spare your
precious time by filling the questionnaire. I assure that the information collected from you
will be kept confidential and used only for the academic purpose.
Thank you
1. Name :
2. Age :
20-30 30-40 40-50
50-60 60 and above
3. Qualification :
Below SSLC SSLC plus Two
Graduation PG and above Others
4. Marital Status:
Married
Unmarried
Widowed/ Separated
5. Occupation :
Government sector Business
Private sector House Wife













63

Agriculture others
6.Your monthly income:-
a) Up to 5000
b) 5000-10000
c) 10000-15000
d) More than15000
7. How much are you saving per month?
a) Less than 1000 c) 5000-10000
b) 1000-500 d) More than 10000
8. Do you prefer to invest for long term, short duration or medium term?
a) Long Term
b) Short Term
c) Medium Term
9. Periodicity of your saving in post office?
Below 1 year 1 to 3Years
3 to 5Year 5 Years & More
10. Have you ever invested your money in post office saving?
Yes
No
11. Which kind of schemes do you prefer most?
a) Recurring Deposit Schemeb) Time deposit scheme
c) National Savings Certificate d) Public provident schemes
e ) Senior Citizens Savings Scheme f) saving account scheme





















64

g) Monthly saving scheme h) others
12. What is your main objective while investing in post office?
a) Tax benefit b)Childrens education
c) Future safety d)Convenience
Others, please specify
13. How often, do you use post office for the transaction purpose?
a) Occasionally b) Frequently
c) Never d) Often
14. What is your consideration while investing in Post office?
a). Past Performance b) Rate of interest
c). Safety d) Investment amount
Others please specify
15. In your opinion which is most useful schemes to the investors?
a) Recurring Deposit Schemeb) Time deposit scheme
c) National Savings Certificate d) Public provident schemes
e ) Senior Citizens Savings Scheme f) saving account scheme
g) Monthly saving scheme h) others
16. Did you face any problem while transacting in post office
a) Yes
b) No
17. If yes, what kind of problems?
a) Employees nonresponsive
b) Time consuming
















65

c) Inconvenient hours
d) Poor assistance by employers
e) Lack of proper guidance
Any other specify.


18. Do you think post office savings is better than any other savings?
Yes
No


19. Are you satisfied with the performance of post office schemes?
Yes
No

20. Rate the performance of post office savings in terms of returns?
a) Very Poor
b) Poor
c) No opinion
d) Good
e) Excellent

21. State your level of satisfaction towards the returns offered by post office schemes

Extremely Dissatisfied Extremely
Dissatisfied Dissatisfied nor Satisfied SatisfiedSatisfied
(1) (2) (3) (4) (5)












66




BI BI LI OGRAPHY
1) Security analysis and portfolio management- punithavathipandian (2009)
2) Managing investments- Prasanna Chandra
WEBSI TE:
wikipedia.org/wiki/IndianPostalService-post office saving schemes
www.indian post.com-History of post office.














67