TO STUDY THE INVESTORS ATTITUDE TOWARDS

POST OFFICE SAVING SCHEMES FROM AMBARNATH AREA

A PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION THE

DEGREE OF

BACHELOR IN COMMERCE (ACCOUNTING AND FINANCE)

UNDER THE FACULTY OF COMMERCE

BY

Meenaxi M Maniyar

UNDER THE GUIDANCE OF

ASST. PROF. Nilesh Meher

MUMBAI UNIVERSITY

S.I.C.E. SOCIETY’S

DEGREE COLLEGE OF ARTS, SCIENCE & COMMERCE

JAMBHUL PHATA, CHIKHLOLI,

AMBERNATH (WEST), THANE – 421505

2019-2020
 S.I.C.E. SOCIETY’S

DEGREE COLLEGE OF ARTS, SCIENCE & COMMERCE

JAMBHUL PHATA, CHIKHLOLI,

AMBERNATH (WEST), THANE – 421505

CERTIFICATE

This is to certify that Meenaxi M Maniyar has worked and duly

completed his Project Work for the degree of Bachelor in Commerce
(Accounting and Finance) under the Faculty of Commerce in the subject
of TAX and his project is entitle “To Study The Investors Attitude
Towards post Office Saving schemes From Ambarnath Area” under
my supervision.

I further certify that that the entire work has been done by the learner
under my guidance and that no part of it has been previously for any
Degree or Diploma of any University.

It is his own work and facts reported by his personal findings and
Investigations.

Meenaxi M Maniyar

ASST. PROF. Nilesh Meher

Date of Submission
 DECLARATION BY LEARNER

I the undersigned Meenaxi M Maniyar here by, declare that the work embodied

in this project work titled “To Study The Investors Attitude Towards Post

Office Saving Schemes From Ambarnath Area”, forms my own

contribution to the research work carried under the guidance of ASST. PROF.
Nilesh Meher is a result of my own research work and has not been previously
submitted to any other University for any other Degree/Diploma to this or any other
University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such as included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Meenaxi M Maniyar

Certified by

ASST. PROF. Nilesh Meher

 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the UNIVERSITY OF MUMBAI forgiving me

chance to do this project.

I would like to thank my Principal, DR. HARSHAL M. BACHHAV SIR for

providing the necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator ASST. PROF. UMA V. TANWAR
MADAM, for her moral support and guidance.

I would also like to express my sincere gratitude towards my project guide ASST.
PROF. Vishal Shingare whose guidance and care made the project successful.

I would like to thank my COLLEGE LIBRARY, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of project especially my PARENTS AND PEERS who
supported me throughout my project.
 INDEX

Sr. Chapter Particulars Page

No. No No.

1 1.1 Introduction

2 2.1 Objective of the Study

2.2 Need & scope of the study
2.3 Limitation of the study
2.4 Research Methodology
2.5 Sample Size & Techniques
2.6 Data Collection Method
2.7 Tools & Techniques

3 3 Review of Literature

4 4.1 Data Analysis & Interpretation

4.2 Findings

5 5.1 Suggestion
5.2 Conclusion

6 6 Bibliography

7 7 Appendix
 CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION:

In India, Post Office Savings scheme provide a secure, risk free attractive
investment option for the small investors and offers the savings product across its
1,55,000 Post offices. The post office savings bank in India was established by the
British Colonizers. The post office savings Bank is the oldest and by far the largest
banking system in the country, serving the investment need of both urban and rural
clientele. These services are offered as an agency service for the Ministry of Finance,
Government of India. The post office savings bank is included in the union list side
item No. 39, of the seventh scheduled of the constitution of India. It provides various
schemes framed by the central government under the acts.

A post office is a customer service facility forming part of a national postal

system. Post office offer mail-related services such as acceptance of letters and
parcels, provision of post office boxes and sale of postage stamps, packing, and
stationery. In addition many post offices offer additional services providing and
accepting government forms (such as passport application), processing government
services and fees (such as road tax), and banking services (such as savings accounts
and money orders). The chief administrator of a post office is called a postmaster.

The term “POST OFFICE” has been in use since the 1650s, shortly after the
legalization of private mail service in England Post riders mounted couriers were
placed every few hours along post roads at posting houses, also known as post houses,
between major cities “Post towns”. These stables permitted important correspondence
to travel without delay. In early America post offices were also known as “stations”.
This term and “post house” fell from seas horse and coach service was replaced by
railways, aircraft and automobiles. Today “Post Office” usually refers to postal
facilities providing customer service. The term “General Post Office” is sometimes
used for the national headquarters of a postal service, even if it does not provide
customer service within the building. A postal facility that is used exclusively for
processing mail is instead known as sorting office or delivery office, which may have
a large central area known as a “sorting” or “postal hall”. Integrated facilities
combining mail processing with railway stations or airports are known as mail
exchange.
 A post office is a facility given by India Post, which is in charge of sorting,
processing, and delivering mails to recipients. It is basically classified into 3 types
namely Head Post office, Sub Post office and Branch Post office. Certain Sub Post
offices do not undertake all types of postal business. We furnish here the data related
to around 1, 55,000 different post office and the services provided by them. Basically,
all post offices provide different services like mail services which include mails &
parcels, Retail Services, Premium Services that include Speed Post, greetings post,
logistics post etc. Financial services include saving bank, NSC etc and many more
like that.

A PIN code is a code used by India post office numbering. Pin code is a 6 digit
long code or number. The Revenue District is represented by the first 3 digits
combined together. The 4th digit of the Pin code represents the route on which a
delivery office is located in the revenue district or sorting district. The combination of
last 3 digit of the pin code are assigned to individual Post offices

In many jurisdictions, mail boxes and post office boxes have long been is
widespread use for drop off and pickup of mail and small packages outside post
offices or when offices are closed. Deutsche post introduced the pack station for
package delivery in 2001. In the 2000s, the United States Postal Service began to
install Automated Postal Centers in many locations. Automated postal centers can
print postage and accept mail and small packages.
 The Department of Posts (DOP), trading as India Post, is a government
operated postal system in India under the Department of Posts, which is part of the
Ministry of Communication of the Government of India. Generally called “The Post
Office” in India, it is the most widely distributed postal system in the world. It is
involved in delivering mails, remitting money by money orders, accepting deposits
under small saving schemes, providing life insurance cover under Postal Life
Insurance (PLFI) and Rural Postal Life insurance (RPLI) and providing retail services
like bill collection, sale of forms, etc The DOP also acts as an agent for Government
of India in discharging other services for citizens such as old age pension payments
and Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
wage disbursement. With 1, 55,000 post offices, India Post have the most widely
distributed postal network in the world. The country has been divided into 23 postal
circles, each circle headed by a chief postmaster General. Each circle is divided into
region, headed by a Postmaster General and comprising field units know as Divisions.
These divisions are further divided into subdivisions. In addition to the 23 circles,
there is a base circle to provide postal services to the Armed Forces of India headed
by a Director General. One of the highest post offices in the world is in Hikkim,
Himachal Pradesh operated by India Post a height of 15,500 ft.,

Since India became independent 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 offices, head post offices, Sub post offices and branch offices. In
April 1959, the Indian Postal Department adopted the motto “Service before help”. It
revised its logo in September 2008. The number of Post offices was 23,344 when
India became independent in 1947 and these were primarily in urban areas. The
number increased to 1, 55,015 in 2016 and 90% of these were in rural areas.

India attained independence on 15 August 1947. Thereafter the Indian Posts

and Telegraph Department embarked on a broad based policy for the issuance of
stamps. The first new stamp was issued by independent India on 21 November 1947.
It depicts the Indian flag with the patriot’s slogan “Jai Hind” at the top right hand
corner. The stamp was valued at three and one half annals. A memorial to Mahatma
Gandhi was issued 15 August 1948 in the first anniversary of independence.
 Postal operators are the leading financial services providers in over 75% of the
countries around the world. Some of the Post Banks in the world have been hugely
successful in the countries of their operation.

Various investment opportunities are available for an individual to his savings

and he can choose the appropriate investment schemes, which suit his needs. There
are different types of opportunities provided by many financial institutions like
commercial banks, co-operative banks, post office savings banks, life insurance
corporation public limited company. Of all the above mentioned institutions, Post
Office Savings Bank play vital role. It provides numerous benefits to the investors.
Post office saving bank is the largest savings institution in the country. With a view of
mobilizing savings of people with relatively small income and circulating in them a
spirit of thrift and savings, the Central Government has endeavored to make the
National Savings Movement popular by offering high returns than those given by
scheduled banks. There are a number of attractive schemes, well designed to meet the
individual requirements of different investors. Tax saving features of those schemes
attracts the higher income groups more than small savers.

The investment avenues provided by the post office are generally marketable
as they are a saving media. The major instruments of post office schemes enjoy tax
benefits such as exemption of investment contribution or interest income from tax or
both up to certain limits.

Savings and investment are important factors for growth and development of
an economy. Saving attitude is essential of every Indian whether they reside in village
or town. Post office saving schemes is one of the modes for them to save their
valuable earning. The Indian postal system facilitates the people to deposit their
money in postal for those who do not have access to a bank in their area. The
investment in postal generally associated with the attitude, perceptions and
willingness of individuals and institutions. Post offices offer various saving schemes
like Saving Bank Account, National Savings Certificate Account, Post office Monthly
Income Scheme, Senior Citizen Scheme, and Recurring Deposit and so on.

Banks also offer deposit schemes, but still Post Office Saving Schemes have
gained significance in rural area. The main objective of this scheme is to facilitate the
rural people to have the attitude of savings. In this study on investors, attitude towards
post office savings scheme in Ulhasnagar area will assume a great significance in
formulating the policies for the development of and regulations of savings in general
and protection, promotion of small savings schemes.

Following are the saving schemes under post office.

1. Post Office Saving Account.

This savings account schemes offered by India Post offers an interest rate of 4
% on individual / joint accounts.
A cherub facility is available if the account is opened with Rs. 500
(A minimum balance of Rs. 500 is to be maintained in the account).
Deposits and withdrawals can be made through any electronic mode at CBS
(Core banking) Post offices.
Post office savings accounts also come with an ATM facility.

2. 5 Yrs Post Office Recurring Deposit Account. (RD)

This recurring deposit scheme offered by India Post offers an interest rate of
6.9 % per annum (quarterly compounded).
There is no maximum deposit limit.
There is rebate on advance deposit of at least 6 installments.
Is in any Post office RD account, there is monthly default amount, the
depositor has to first pay the defaulted monthly deposit with default fees and
then pay the current month deposit. One withdrawal up to 50 % of the balance
allowed after one year.

3. Post Office Time Deposit Account. (TD)

Interest rate under Post Office Time Deposit Account is payable annually but
calculated quarterly. Current interest rate on one to five year deposits is as
follows:
1 Year account - 6.6 %
 2 Year account - 6.7 %
3 Year account - 6.9 %
5 Year account - 7.4 %
There is no maximum deposit limit.
The investment under 5 year Post Office Time Deposit account qualifies for
the benefit of Section 80C of the Income Tax Act.

4. Post Office Monthly Income Scheme Account. (MIS)

Post office monthly income schemes or MIS is a popular investment scheme

wherein an individual invests a particular amount and gets an assured monthly
income in the form of interest. Under the Post office MIS scheme, the interest
payable on a monthly basis commencing from the date of deposit is deposited
in your post office savings account. There are no income tax benefits available
for investing in the Post Office MIS account. This scheme is suitable for those
who want a steady flow in income, such as retired persons.
Current interest rate on Post office Monthly scheme account from 01.01.2018,
interest offered is 7.3% pa payable monthly.
The maturity period of Post office Monthly Income Scheme is five years.
The scheme can be prematurely closed after one year. A deduction amounting
to 2 % of the deposit will be applicable to a depositor closing the account
between 1 year and three years after opening. And after three years, 1 % will
be deducted. The remainder will be paid to the depositor.

5. Senior Citizen Savings Schemes. (SCSS)

Senior citizen Savings Scheme offered by India Post is one of the most
popular schemes wherein senior citizens earn regular income by investing in
the scheme.
The maximum amount should not exceed Rs. 15 lakh
Maturity period of Senior Citizen Savings scheme is 5 years.
A depositor may operate more than one account in individual capacity or
jointly with spouse (husband/wife).
 Investment under this scheme qualifies for the benefit of Section 80c of the
income tax Act.

6. National Savings Certificates

Currently National Savings Certificates fetch an interest rate of 7.6 %

compounded annually but payable at maturity.
Rs. 100 grows to Rs. 144.23 after 5 years.
There is no maximum investment limit in NSC
Deposit Qualify for tax rebate under Section 80C on Income Tax ACT

When it comes to the matter of savings, there are a lot of options that have
been made available to investors in India. These options offer a range of
features that can include things like attractive interest rate, safety for the
money invested, income tax benefits and also the chance to increase the
amount invested and that too by a substantial amount. These products are
designed to meet the needs of various needs of investors, which can be a
combination of some of the features mentioned above.

One such combination of attractive interest rate, safe investment avenue and
tax benefits are the National Savings Certificates or NSC. These are
investment tools that can help investors get returns on the money invested and
also get benefits in their taxable incomes. The inception of the NSC can be
traced back to the 1950s when the government issued savings certificates in
order to raise money to help fund the development of a new and independent
India. They are issued by the post office and can be taken from any branch of
the Indian postal service.

7. Public Provident Fund (PPF)

PPF is one of the most popular savings schemes for retirement savings,
Investors also get the benefit of PPF.
PPF is a long term investment for a period of 15 years currently offered at an
interest rate of 8 % pa.
 Investment is allowed with the maximum amount of Rs. 500 and Maximum of
Rs. 1.5 lakhs in a financial year. Investments can be made in lump sum or in
12 equal installments.
Account can only be opened in a single holding form
PPF accounts have a maturity period of 15 years. Currently PPF laws allow
premature closure of accounts only under specific conditions such as
expenditure towards medical treatment.

It is involved in delivering mails, remitting money by money orders, accepting

deposits under small savings schemes, providing life insurance cover under Postal
Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) and providing retail
services like bill collection, sale of forms, etc. The Department of Post also acts as an
agent for Government of in discharging other services for citizens such as old age
pension payments and Mahatma Gandhi National Rural Employment Guarantee
Scheme (MGNREGS) wage disbursement. With 1, 55,015 Post offices, India Post has
the most widely distributed postal network in the world.

The country has been divided into 23 postal circles, each circle headed by a
Chief Postmaster General. Each circle is divided into regions, headed by a Postmaster
General and Comprising field units known as Division. These Divisions are further
divided into subdivisions. In addition to the 23 circles, there is a base circle to provide
postal services to the Armed Forces of India headed by a Director General. One of the
highest post offices in the world is in Hikkim, Himachal Pradesh operated by India
Post at a height of 15,500 ft (4,700 m).

The British Raj was instituted in 1858, when the rule of the East India
Company was transferred to the crown. 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 and in
1876; British India became the first non-founding member of the General Postal
Union. A number of acts were enacted during the British Raj to expand and regulate
Posts and Telegraphs service:

 The Government Saving Bank Act 1873 (5 of 1873), passed by the legislature
of 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 1898 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 min) 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 Nain 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 again
on 1 January 1985.

Stamps issued by the East India Company. The first adhesive postage stamps
in Asia were issued in the Indian district of Scinde in July 1852 by Bartle Frere, Chief
Commissioner of the region. Frere was an admirer of Rowland Hill, the English postal
reformer who had introduced the Penny Post. The Scinde stamps became known as
“Scinde Darks”, “Dark” is the Anglicized spelling of the Hindustani word Dark or
(“POST”). These stamps, with a value of ½ Anna, were in use until June 1866. The
first all-India stamps were issued on 1 October 1854.

Post office has since many years served as the backbone of communication
services and deposit saving options. For more than 150 years Post offices has played a
vital role as a leader in communication all over India by providing Socio-economic
development of the country. Post Offices offer varied services. Their services are not
just confines to delivering mails; they also accept deposits, provide insurance options
and to a large extent supply various saving schemes to the citizens. India Post is
committed to provide basic postal facilities throughout the country at an affordable
price. A network of 1.55 lakh post offices in the country, the largest in the world, of
which more than 1.39 lakh are in the rural areas, is indicative of this commitment.
Rapid introduction of information technology has not only driven post offices to be
business oriented but also businesses has approached post offices for various business
accounting transactions.

In this era of fast developing information and communications technology,

large scale induction and assimilation has become vital for the sustenance and growth
of India Post. At present where private players are entering and capturing the financial
business and commercial market, it is a matter of concern whether Post Office
Savings Banks are still preferred by society or not, whether it is still seen as important
saving option or not. Consequently, an attempt has been made to find out the
investment preference towards different Post office saving schemes and to know the
reasons behind the interest of investors of Ulhasnagar city with specific reference to
their behavioral patterns.

In the beginning of the 19th century, there were only a few banks and that too
in big towns and cities. It was very difficult for the common man who wanted to save
his small amount of money in the bank to go to a bank as he had to incur expenditure
for the journey. Further, saving habit amongst the people was almost nil, and most of
the people had their small savings in the form of gold and silver. On the other hand,
the Government wanted to encourage savings because they were in dire need of
money for various developmental activities, for strengthening military establishments
and for carrying out administrative reforms. These factors compelled the Government
to start Savings bank through the Post Office. Government Savings Bank was started
in the three Presidency towns of Calcutta, Madras and Bombay in 1833, 1834 and
1835 respectively.

In 1860, the Secretary of state for India initiated steps for empowering the post
offices to undertake savings bank operations in India, similar to that of the U.K. But
the Government was under organized and not matures enough to take upon such
banking business. Some changes took place subsequently in the management of
Savings Bank. Between 1863 and 1865, the management of the Savings Bank was
transferred from Government Treasuries to the Presidency Bank, and each Presidency
Bank framed its management. The deposit allowed was Rs. 500 in a year up to a
maximum of Rs. 3000 and the interest rate was fixed at 3.75 percent per annum. In
practice, the SB counters were kept open twice in a week.1 Financial services of the
Post Office form a profitable business today, although they were started as a
supplementary income generating operation. Post offices render a plethora of agency
services in addition to their basic duty of mail delivery.

These services include savings Bank, Money Order, Postal Order and Postal
Life Insurance. This helps the postal Department produce income to the extent of
nearly 45% of its budget revenue. Savings bank work was undertaken by post offices
on 1 April 1882 and the entire banking operations were kept under the supervision
and management of postmasters. In Tamil Nadu, the introduction of POSB was
confined to small places. The object of establishing SB was to extend banking
facilities to millions of poor and middle class people living in the farthest corners of
the country and to accumulate and invest their savings, and to use the same for the
economic development of the country and also to meet the administrative needs and
requirements of the Government.

It also aimed at encouraging thrift. India Post is committed to provide basic

postal facilities throughout the country at an affordable price. A network of 1.55 lakh
post offices in the country, the largest in the world, of which more than 1.39 lakh are
in the rural areas, is indicative of this commitment. Rapid introduction of information
technology has not only changed the way post offices do business the world over, but
also the business that post offices do. In this era of fast developing information and
communications technology, large scale induction and assimilation has become vital
for the sustenance and growth of India Post.

India is one of rapidly growing economies of Asia. Emergence of several

significant trends such as liberalization and globalization, demographic shift towards
urbanization monetization of the economy especially the agricultural sector giving
rise to a corresponding demand for financial services by all sections of the society and
government policy to increase funding for weaker section programs has necessitated
changes in financial framework of the country. Due to the ongoing reforms the
people’s expectations and requirements from life are changing. Investments have
become a basic necessity of everyone. Volatility in the market, increasing
expenditure, uncertainties, rising inflation etc. is letting large section of society to
showing heir interest and to investing their funds in different nature of investment
products. Many of them provides better returns, high interest rates, tax savings, high
quality IT related service and much more benefits.

At one place where a large bundle of such investment products are offered in
the market. Government of India is still running and sustaining the oldest Postal
saving option to saving money. At present where private players are capturing the
market, it is a matter of concern whether Post Office Savings Banks are still preferred
by society or not, whether it is still seen as important saving option or not.
Consequently, an attempt has been made to find out the investment preferences
towards different post office saving schemes and to know the reason behind the
interest of investor of Ulhasnagar area in the state of Maharashtra. Accessibility of
researchers with the investors of Ulhasnagar region has motivated them to select them
as preferred sample of the study.

Saving attitude is prima facie of every Indian whether they reside in village or
town. Post office savings is also one of the modes for them to save their valuable
earning. The Indian postal system facilitates the people to deposit their money in
postal for those who do not have access to a bank in their area. The investment in
postal generally associated with the attitudes, perceptions and willingness of
individuals and institutions. The core objective of this scheme is to facilitate the rural
people to have the attitude of savings.

The Indian postal system is the comparatively largest network of 1.5 lakhs of
post office across the nation. It has been the traditional communication provider as
well as a motivating factor for small saving schemes for more than 150 years. Post
Office has played a predominant role in the socio-economic development of the
country and no technology may replace it. In this study on Investors, attitude towards
post office savings scheme in Ulhasnagar will assume a great significance in
formulating the policies for the development of and regulations of savings in general
and protection, promotion of small savings schemes in particular. The study will
facilitate the policymakers and regulatory authorities to understand the investor’s
attitude of their investment culture. .
 These services are offered as an agency service for the Ministry of Finance,
Government of India. The post office savings bank is included in the union list side
item No.39 of the seventh scheduled of the constitution of India. Statement of the
Problem Even though the post office is existing in more than 150 years, even today
main problems are uneducated peoples are not aware of the facilities extended by the
Government of India year by year. Hence, research in this area will facilitate the
policy makers to know the real problem faced by the investor in the rural part of the
country. This study is based on questionnaire method. Primary data were collected in
Ulhasnagar. The total number of respondents is 30. Secondary sources are also used
for getting some basic information.

The Post Office Saving Schemes include a bucket list of products that offer
reliability and risk-free returns on investment. Such security and returns are perks one
mostly associates with a central government-run savings portfolio. These schemes are
operated via 1.54 lakh post offices all over the country. Take for instance the PPF
scheme; PPF is operated via 8200 branches of public sector banks in addition to the
post offices in each city.

The saving schemes are easy to enroll in and are best suited for the rural and
as well as the urban investor, anyone who wants to hedge the risk in the portfolio for a
fixed decent return. Their simplicity and availability makes these a much preferred
savings option. Limited documentation and proper procedures in post office ensures
that these saving schemes are simple to opt for and safe to be locked onto as they are
also backed by the government.

The investments in the Post Office Schemes are more forward-looking and
long-term oriented with the investment period extending up to 15 years for a PPF
account. This acts as a huge help in retirement and pension planning. Most of these
schemes carry with them tax rebates under Section 80C for the deposit amount. Few
of the schemes like the PPF, the Sukanya Samriddhi Yojana, etc. also have the
interest earned amount exempted from taxation. Interest rates range from 4% to 9%
which is totally risk free. There is a minimal amount of risk involved as this is an
undertaking by the government. here is a different range of products based on
different types of individuals. Public Provident Fund (PPF), Kisan Vikas
Patra and Sukanya Samriddhi Yojana are some of the more well-known schemes.
 The government has made these small savings schemes available via post
offices to provide a safe investment avenue for the public. By giving those goods
returns while keeping their money safe, these schemes are easy to manage. If the
features and benefits iterated above meet your financial goals, invest in a post office
savings scheme to secure your financial future at minimal risk.

Postal savings systems to provide depositors who do not have access to banks
a safe, convenient method to save money and to promote saving among the poor. .
Investment culture refers to the attitudes, perceptions, and willingness of individuals,
and institutions in placing their savings in various financial assets, more popularly
known as investments or Postal Savings. A study on investors attitude towards post
office savings schemes in Ambarnath town thus assumes a greater significance in the
formulation of policies for the development and regulation of savings in general and
protection and promotion of small and household investors in particular. It is
extremely important for the policy makers and regulatory authorities to understand the
investors’ perceptions and their preferences.

Promotion of the Small Savings Schemes

National Savings organization (NSO) is responsible for the national level

promotion scheme through publicity campagain and advertisement in audio, video as
well as print media. Through a large network of over five lakhs small savings working
under different categories namely

• Standardized agency system (SAS)

• Mahilapradhan Kshathriya Yojana (MPKBY)

• Public Provident Fund agency scheme

• Payroll Savings Scheme groups

• School Savings Banks (Sanchavikas)

In addition the extra departmental branch post masters also in mobilizing

savings, especially in rural and remote areas
 The strength of India posts its long tradition of handling financial services and
its creditability and trust. Post office reform the important role of banker to collect the
surplus money from village people. The general criticisms levied against post office
savings schemes by investors are

• Everything is maintained in paper register in rural areas. If the investors lose

it even by mistakes, he has to run from pillar to post to get their money back.

• The changes are high that one may be duped by the agents of the post office
schemes. There is no identity proof for such people issued by the post offices. Even if
they do issue, there is no way to verify it.

• The post offices are manned and operated with single employee in many
villages. He takes the posts, speed posts, registered post, deposits, withdrawals and
the like. Apparently, he handles everything. Consequently, an investor has to wait for
the employee for long time.
 CHAPTER 2
RESEARCH
METHODOLOGY
2.1 NEED & SCOPE OF THE STUDY

 Attitude of investors is an important aspect in investment.

 Research as small savings constitutes an important source of investment.
 It helps working people to invest in various post office deposits schemes.
 The result of the study will help the investors to know the type of savings
Which gives maximum return?
 This study covers only the investors who are residing in Ulhasnagar area.

2.2 OBJECTIVES OF THE STUDY

 To Analyze the benefits enjoyed by the Investors

 To study the different factors considered by Investors in selection of the
schemes.
 To study the awareness among investors about post office savings schemes
 To study the problems of investors while investing in post office schemes.
 To know the risk factor among investors.

2.3 LIMITATIONS OF THE STUDY

 The study was limited up to 30 members that to Ulhasnagar area through

structured questionnaire.
 The study is based on primary data and secondary data.
 The data analysis is based on only 30 members.
RESEARCH AND METHODOLOGY:

The significance of research can be understood by knowing its various aspects

and its contributions in many fields. It studies human behavior through scientific
methods. It provides information relating to problems of the society. It finds solution
to the problems through the application of scientific methods. Precisely, it is the
research of finding facts which are still to be discovered. The importance of research
lies in a fact that there is so such to know and so we have known only a little fraction
of it. Therefore, we must continue our journey from darkness to light and enrich the
treasure of human knowledge. A theory can be called scientific only when it can be
tested and verified.
The word research is derived from the French word “Researcher” meaning to
search back. Broadly research refers to a search for knowledge. Research is an
attempt to find answers to problems both theoretical and practical, though application
of scientific methods. “Research is an enquiry into the nature of, the reason for, and
the consequences of any particular set of circumstances, whether they experimentally
control or recorded as the take place.” Research is an organized effort.
DEFINATION OF RESEARCH:
“Research is an organized enquiry designed and carried out to provide
information for solving a problem.”
- Fred Kerlinger
-

TYPES OF RESEARCH:

1. Descriptive Research:
Descriptive research seeks to depict what already exists in a group
or population. An example of this type of research would be an opinion poll to
determine which Presidential candidate people plan to vote for in the next
election. Descriptive studies do not seek to measure the effect of a variable;
they seek only to describe.

2. Basic Research:
Basic research, also called pure research or fundamental research, has
the scientific research aim to improve scientific theories for improved
 understanding or prediction of natural or other phenomena. Applied research,
in turn, uses scientific theories to develop technology or techniques to
intervene and alter natural or other phenomena. Though often driven by
curiosity, basic research fuels applied science's innovations. The two aims are
often coordinated in research and development.

3. Analytical Research:
Analytical research is a specific type of research that involves critical thinking
skills and the evaluation of facts and information relative to the research being
conducted

4. Quantitative Research:

Quantitative Research Definition: Quantitative research is defined as the

systematic investigation of phenomena by gathering quantifiable data and
performing statistical, mathematical or computational techniques. Quantitative
research gathers information from existing and potential customers
using sampling methods and sending out online surveys, online
polls, questionnaires etc., the results of which can be depicted in the form of
numerical.

5. Qualitative Research:
Qualitative Research is primarily exploratory research. It is used to gain an
understanding of underlying reasons, opinions, and motivations. It provides
insights into the problem or helps to develop ideas or hypotheses for potential
quantitative research. Qualitative Research is also used to uncover trends in
thought and opinions, and dive deeper into the problem. Qualitative data
collection methods vary using unstructured or semi-structured techniques.

REASEARCH DESIGN

The researcher must prepare a research design. It is logical and systematic

plan prepared for conducting a research study. It can be called as a blue print for
collection; measurement and analysis of data. The research design provides guidelines
to researcher regarding the time period within which research is to be collected, the
techniques of data collection and data analysis and so on.

A research design us the set of methods and procedures used in collecting and
analyzing measures of the variables specified in the research problem research. The
design of a study defines the study type (descriptive, correlation, semi experimental,
experimental, review, Meta analytic) and sub type (e.g. descriptive case study),
research problem, hypothesis, independent and dependent variables, experimental
design and if applicable, data collection methods and a statistical analysis plan. A
research design is a framework that has been created to find answers t research
question.
SAMPLE SIZE AND TECHNIQUES

Sample area-

Sample area for the research is taken from questionnaire from Investors in Ulhasnagar
Area.

Sample size-

The sample size consisted of 30 Investors.

DATA COLLECTION METHOD

 Primary Data-

Primary data is data that is collected by a research from first-hand sources, using
methods like surveys, interviews, or experiments. It is collected with the research
project in mind, directly from primary sources.
I selected survey method for the research. I was communicating with different age of
individuals for collecting the data and the study was conducted for period of 7 days
with 30 respondents.

 Secondary data-

Secondary data refers to data which is collected by someone who is someone other
than user.
Secondary data collected through journals, books and websites.
CHAPTER 3
REVIEW OF
LITERATURE
REVIEW OF LITERATURE:-

1. G Thangapandi in the year (2013) According to the study Post office provides
numerous services to the economy. The objective is to assess the opinion of
the customers towards postal services and how frequently they use the services
and to offer suggestions for improvement in them. The focus is on
demographic profile of the customer namely literacy, occupation, location
where there is a significant change in their relationship, whereas no significant
change has been observed in relation to demographic profile such as age,
gender and income of the respondent.

2. Mehul Chandrakant Chhatbar in the year (2013) Tried to explain in his study
the satisfaction of consumer which they derive from using services of the post
offices and in comparison the satisfaction arrived from private courier services
in Mumbai. The study reveals that there is no significant difference in the
satisfaction levels of the customers. A post office provides excellent and better
services at low cost whereas private firms provide prompt services at little
high cost. Hence customers are equally satisfied by using the private courier
firms or Indian postal services.

3. Dipankar Malankar in the year (2013) reveals through the paper the role
played by post office in the financial inclusion and the challenges faced by the
department of post. Indian post office provided reliable and low cost services.
The post office is providing a plethora of financial services throughout the
country through different branches various hurdles and challenges come in
way during the course of working of services. But it has removed this all
challenges by becoming the most reliable and safest way of investment
agency.

4. Anand M Et Al in the year (2013) in his paper focuses on the performance

aspects of India postal services and its future growth strategy. The strength of
India post is its long traditional of handling financial service and its reach to
masses. To improve its services quality & operational efficiency India post has
introduce a centralized core banking solution with alternative delivery
 channels facilitating any time anywhere banking environment. The growth of
post and its performance is not impressive but its strategy moving to remove
all hurdles and challenge.

5. Ritik Agarwal in the year (2012) Concludes in her study the various factor
which focus on influencing the investor to invest among the different savings
schemes of the post offices. It explains that the educational qualification and
occupations of the investors has a significant impact on the saving pattern as
well as to choose among various investment schemes and services available
with post offices. The study states that the investment in senior citizen
schemes are very low preferred by the customer and communication network
of the post offices should be increased. Post offices provide a unique bundle of
saving products revolution in IT is the must preferred challenges for the postal
offices.

6. Vishal Mehta and Anil Mirchandani in his research paper he Focus on the
investment avenues for investing in the post office savings schemes. It’s
convenient for the customer of rural and urban customers to choice the
investment in different schemes available. Good public image and confidence
is developing among the general public as it offers the safety mode of return.
The best part of postal department is the coverage of the huge masses,
providing the best investment options with tax saving schemes and tax
deduction on various investment avenues safety way.

7. K Gayathri in the year (2014) the paper studies in general the attitude of the
investors towards the different schemes with the postal offices. It analyzes the
study of the various problems faced by the customers in investing money in
post offices. It highlights suggestion for improvement in the way postal
department perform services. Latest technology up gradation which will make
services faster and reliable. Advertisement strategy should be adopted as lack
of awareness is there as campaigning of services is not done. Post offices
reach to the millions of people serving them the best products and schemes. Its
role in rural areas in vital one.
8. Thabiso John Mokiena and Charles Mbohwa in the year (2013) he Discuss in
the paper about the performance management of postal organization. The
performance management of postal organization. The performance of the post
is at decreasing level in last decades in terms of revenue, customer satisfaction
and has a tough competition from private mail companies. It focuses on
transformation role which will lead to a positive performance of a postal
organization.

9. Seyed Ali Hosseini in the year (2013) The paper studies the strength weakness
opportunities and threats of postal services. It focuses on the number of
problems faced by the public relating to the services offered by the postal
offices. The post office distribution and city environment are not properly
organized and it offer various suggestion to improve consistent services to
customers.

10. Suma Mathew in the year (2015) Include in her study the role of postal
administration in providing the excellence services and enjoying the trust and
loyalty in customers buy diversifying themselves through innovative products
and services and the changing role of post offices by entering into new areas
such as telephony and financial services. Indian post is the largest and most
credible outreach infrastructure in the country several innovation products are
implemented for letters and delivery of parcels It’s a critically window for the
rural people to avail sophisticated products and affordable financial products.
Its core competencies are its credibility brand strength and outreach to
millions of people.

11. Moez and Jamel-Eddine Gharbi in the year (2012) In their paper studies the
customer satisfaction in delivering services by the postal department relating
to mail services and secondly loyalty of the customers towards the services of
the post. It concludes that the satisfaction of customers for undertaking
services from post has a positive impact on the loyalty of the customers.
12. N menthol Kumar and M. Prakash in the year (2014) This paper attempts to
study the importance of precious metal i.e Gold & expectations of customers
in buying gold through post offices Gold is highly liked by customers use to
its increase of value in market & secondly as it is used extensively for making
of Jeweler India post has started to provide gold coins through selected
branches 99.99% purity of gold is offered by them. This facility is available
with 630 post offices various discounts are offered by them out a tough
competition has to be faced from other companies India post is moving
towards technology innovation & modernization for services and tries to
satisfy customers with best products and services.

13. Mu. Subramanian in the year (2010) highlights in his paper the importance of
training of employees in department of post. Training is inevitable as it
develops skills and knowledge of employees. It prepares them for facing new
challenges and opportunities in their way. The focus is on training is to
improve quality moment, continuous improvement India post has adopted.
AIM model appraisal intervention and measure model to e nhance the quality
and effectiveness of the training programmed. India Post has adopted sound
training stranger.

14. B. Sarnia and GB Karthikeyan in the year (2015) conclude in his paper the
importance of savings among the investors in post office schemes. To analyze
the satisfaction they derived using the services of post office and to identify
the strength weakness, opportunities and threats. Thus the prime reason for
investors to invest is emergency needs family needs and future of children.

15. Divesh Kumar in the year (2015) in his paper has made a comparative study of
the role played by post office in rural areas in developed countries,
underdeveloped countries and emerging economy. The role played by postal
department in vital one in fostering financial inclusion women empowerment
can be increased by giving them facilities from post office.
CHAPTER 4
4.1 DATA
ANALYSIS
ANALYSIS OF PRIMARY DATA

1. AGE

PERCENTAGE
Age FREQUENCY %
20 - 30 14 47 %
30 - 40 9 30 %
40 - 50 6 20 %
ABOVE50 1 3 %
TOTAL 30 100 %

AGE

3%

20%

47%
20 - 30
30 - 40
40 - 50
30%
50 ABOVE

From the above table it shows that out of the 30 Respondents, The age group of
20 – 30 yrs are 14 respondents i.e (47 %), 30 – 40 yrs are 9 respondents i.e (30%),
40 – 50 yrs are 6 respondents i.e ( 20 %) & the respondents are Above 50 yrs are 1 i.e
(3 %). Hence it is concluded that the age group of 20 – 30 yrs i.e (47 %) are more
interested in investing in Post Office savings Schemes.

2. GENDER

GENDER FREQUENCY PERCENTAGE

%

MALE 14 47 %

FEMALE 16 53 %

TOTAL 30 100 %

GENDER

47%

53%
MALE
FEMALE
From the above table it shows that out of the 30 respondents, 14 (47%) sample
respondents are male & 16 (53%) sample respondents are female, they are more
interested in investing in Post office savings Schemes

3. MARRIED STATUS

MARRIED FREQUENCY PERCENTAGE

STATUS %

MARRIED 17 57 %

UNMARRIED 13 43 %

TOTAL 30 100 %

MARRIED STATUS

43%

57% MARRIED
UNMARRIED
From the above table it shows that the out of 30 respondents the status of Married
group are 17 respondents (57 %) & Unmarried group are 13 (43 %). It seems like
married group are more interested in investing money in Post Office Saving schemes.

4. EDUCATION QUALIFICATION

EDUCATION FREQUENCY PERCENTAGE

QUALIFICATION %

SSC 1 3%

HSC 6 20 %

GRADUATION 12 40 %

POST GRADUATION 11 37 %

TOTAL 30 100 %
 EDUCATION QUALIFICATION

3%

20%
37%
SSC
HSC
GRADUATION
40% POST GRADUATION

From the above table it shows that out of the 30 respondents 1 (3%) sample
respondents are completed their SSC. 6 (20%) of the respondents completed their
HSC. 12 (40%) of the respondents completed their graduation and they are more
interested in Post office Saving Schemes. 11 (37%) of the respondents completed
their post graduation.

5. OCCUPATION

OCCUPATION FREQUENCY PERCENTAGE %

AGRICULTURE 0 0%

BUSINESS 5 17 %
 GOVERNMENT EMPLOYEE 2 7%

PROFESSIONAL 8 27 %

HOUSEWIFE 1 3%

OTHER INCOME 14 46 %

TOTAL 30 100 %

OCCUPATION

0%

17%
AGRICULTURE
46% 7%
BUSINESS
GOVERNMENT EMPLOYEE

27% PROFESSIONAL
3% HOUSEWIFE
OTHER INCOME

From the above table it shows that out of 30 respondents are 0 (0%) of the sample
respondents are Agriculture Sector. 5 (17%) of the respondents are in Business
Sector. 2 (7%) of the respondents are Government Employees. 8 (27%) of the
respondents are Professionals like Doctor, Teacher etc. 1 (3%) of the respondents are
Housewife. 14 (46%) of the respondents are having Other Income like Salary Income
etc. and they are more interested in Post Office Saving Schemes.

6. MONTHLY INCOME

MONTHLY INCOME FREQUENCY PERCENTAGE %

20,000 – 35,000 17 57 %

35,001 – 50,000 9 30 %

50,001 – 65,000 3 10 %

65,001 – 80,000 1 3%

TOTAL 30 100 %

MONTHLY INCOME

10% 3%

20,000 - 35,000
30% 57% 35,001 - 50,000
50,001 - 65,000
65,001 -80,000
From the above table it shows that out of 30 respondents the people having Monthly
Income group of 20,000 – 35,000 are 17 (57%) of the sample respondents are more
interested in Post office saving schemes. 9 (30%) of the respondents are between the
Income group of 35,001 – 50,000. 3 (10%) of the respondents are between the Income
group of 50,001 – 65,000. 1 (3%) of the respondents are between the Income group of
65,001 – 80,000 and above.

07. EARNING MEMBERS IN YOUR FAMILY

EARNING MEMBERS FREQUENCY PERCENTAGE %

1 5 17 %

2 15 50 %

3 6 20 %

ABOVE 3 4 13 %

TOTAL 30 100 %
 EARNING MEMBERS IN YOUR FAMILY

13% 17%

20%
1
2
3
50% ABOVE 3

From the above table it shows that out of 30 respondents 5 (17%) of the sample
respondents having only One Earning member in family. 15 (50%) of the respondents
having Two Earning members in family and it seems that they are more interested to
invest in Post Office Saving Schemes. 6 (20%) of the respondents having Three
Earning Members in family. 4 (13%) of the respondents having above 3 Earning
Members in family.

8. NO OF DEPENDENT MEMBERS

NO OF DEPENDENT FREQUENCY PERCENTAGE %

0 6 19 %

1 7 22 %
 2 11 34 %

3 5 16 %

ABOVE 3 3 9%

TOTAL 30 100 %

NO OF DEPENDENT MEMBERS

9%
19%
16%
0
1
22%
2
3
34%
ABOVE 3

From the above table it shows that out of 30 respondents 6 (19%) of the sample
respondents are independent. 7 (22%) of the respondents are having one dependent
member. 11 (34%) of the respondents are having Two dependent member & they are
more interested to invest money in Post Office Saving Schemes. 5 (16%) of the
respondents are having Three dependent members. 3 (9%) of the respondents are
having above three dependent members
9. SOURCES OF INCOME FOR YOUR SAVINGS IN POST
OFFICE

SOURCES OF INCOME FREQUENCY PERCENTAGE %

SALARY INCOME 22 73 %

BUSINESS INCOME 4 14 %

AGRICULTURE INCOME 0 0%

INTEREST EARED 3 10 %

THROUGH RENTAL INCOME 1 3%

TOTAL 30 100 %

SOURCES OF INCOME

3%
0% 10%
SALARY INCOME
14%
BUSINESS INCOME
AGRICULTURE INCOME
INTEREST EARED
73%
THROUGH RENTAL INCOME
From the above table it shows that out of 30 respondents 23 (73%) of the sample
respondents having Salary Income and they are more interested to invest in Post
Office Saving Schemes. 4 (14%) of the Respondents having Business Income. 0 (0%)
of the respondents having Agriculture Income. 3 (10%) of the respondents having
Interest Earned Income. 1 (3%) of the respondents having Through Rental Income.

10. AMOUNT OF SAVINGS PER MONTH IN POST OFFICE

AMOUNT OF SAVINGS FREQUENCY PERCENTAGE

%
BELOW 1,000 3 10 %

1,001 - 2,000 13 44 %

2,001 - 3,000 10 33 %

ABOVE 3,001 4 13 %

TOTAL 30 100 %

AMOUNT OF SAVINGS

13% 10%

BELOW 1,000

33% 1,001 - 2,000

44%
2,001 - 3,000
ABOVE 3,001
From the above table it shows that out of 30 respondents 3 (10%) of the sample
respondents are saving Below 1,000 per month. 13 (44%) of the respondents are
between 1,001 – 2,000 and they are more interested to save in Post office Saving
Schemes. 10 (33%) of the respondents are between 2,001 – 3,000. 4 (13%) of the
respondents are Above 3,001.

11. NO OF YEARS OF SAVINGS IN POST OFFICE SCHEMES

NO OF YEARS OF FREQUENCY PERCENTAGE %

SAVINGS
1 – 3 YRS 17 56 %

3 – 5 YRS 8 27 %

5 – 7 YRS 5 17 %

ABOVE 7 YRS 0 0%

TOTAL 30 100 %
 NO OF YEARS OF SAVINGS

0%

17%

1 - 3 YRS
3 - 5 YRS
27% 56%
5 - 7 YRS
ABOVE 7 YRS

From the above table it shows that out of 30 respondents 17 (56%) of the sample
respondents are investing in between 1 – 3 yrs are they are more interested to invest in
Post Office Saving Schemes. 8 (27%) of the respondents between 3 – 5 yrs. 5 (17%)
of the respondents between 5 – 7 yrs. 0 (0%) of the respondents are Above 7 yrs.

12. SOURCE OF KNOWLEDGE

SOURCE OF KNOWLEDGE FREQUENCY PERCENTAGE %

FRIENDS 9 30 %

RELATIVES 12 40 %

ADVERTISEMENT 1 3%

AGENT 2 7%
POST OFFICE EMPLOYEES 4 13%

OTHER 2 7%
TOTAL 30 100 %

SOURCE OF KNOWLEDGE

7%
FRIENDS
13% 30%
RELATIVES
7% ADVERTISEMENT
AGENT
POST OFFICE EMPLOYEES
3%
OTHER
40%

From the above table it shows that out of 30 respondents 9 (30%) of the respondents
get information through Friends. 12 (40%) of the respondents get information through
relatives. 1 (3%) of the respondents get information through Advertisement. 2 (7%) of
the respondents get information through Agent. 4 (13%) of the respondents get
information through Post Office Employees. 2(7%) of the respondents get information
through others.

13. UNDER WHICH SCHEME OF DEPOSIT DO YOU PREFER

SCHEMES FREQUENCY PERCENTAGE
%
Post office monthly income scheme 11 37 %

Post office time deposit 2 7%

Post office saving account 7 23 %

Post office recurring deposit account 3 10 %

Public Provident fund 1 3%

National Savings Certificate 6 20 %

TOTAL 30 100 %

UNDER WHICH SCHEME OF DEPOSIT DO

YOU PREFER

POST OFFICE MONTHLY

INCOME SCHEME

20% POST OFFICE TIME DEPOSIT

37%
3% POST OFFICE SAVING
ACCOUNT
10%
POST OFFICE RECURRING
DEPOSIT ACCOUNT
7%
23% PUBLIC PROVIDENT FUND

NATIONAL SAVINGS
CERTIFICATE
From the above table it shows that out of 30 respondents 11 (37%) of the respondents
are preferring Post Office Monthly Income Scheme. 2 (7%) of the respondents are
preferring Post Office Time Deposit. 7 (23%) of the respondents are preferring Post
office Saving Account. 3 (10%) of the respondents are preferring Post Office
Recurring Deposit Account. 1 (3%) of the respondents are preferring Public Provident
Fund. 6 (20%) of the respondents preferring National Savings Certificate.

14. UTILIZATION OF MATURITY

UTILIZATION OF MATURITY FREQUENCY PERCENTAGE

%

No reinvestment 5 17 %

Invest in other post office saving schemes 7 23 %

Invest in other investment option 4 13 %

Redeposit in the same scheme 12 40 %

Other 2 7%

TOTAL 30 100 %
 UTILIZATION OF MATURITY

NO REINVESTMENT
7% 17%
INVEST IN OTHER POST
OFFICE SAVING SCHEMES

40% INVEST IN OTHER

23% INVESTMENT OPTION
REDEPOSIT IN THE SAME
13% SCHEME
OTHER

From the above table it shows that out of 30 respondents 5 (17%) of the respondents
are preferring No reinvestment. 7 (23%) of the respondents are preferring Invest in
other Post Office Saving Schemes. 4 (13%) of the respondents are preferring invest in
other investment option. 12 (40%) of the respondents are preferring Redeposit in the
Same Scheme. 2 (7%) of the respondents are preferring other Schemes.

15. MAJOR PROBLEM FACED BY YOU WHILE MAKING

DEPOSIT IN POST OFFICE SAVING SCHEMES

MAJOR PROBLEMS FREQUENCY PERCENTAGE

%
Delay in Processing 5 17 %
Interest is Low 9 30 %

High Penal Charges 1 3%

Lack of Customer Friendly Attitude 5 17 %

Lack of Information 3 10 %

Long Lock in Period 1 3%

Other 6 20 %

TOTAL 30 100 %

MAJOR PROBLEM

DELAY IN PROCESSING

INTEREST IS LOW
20% 17%
HIGH PENAL CHARGES
3%
10% LACK OF CUSTOMER FRIENDLY
30%
ATTITUDE
17%
LACK OF INFORMATION

LONG LOCK IN PERIOD

3%

OTHERS

From the above table it shows that out of 30 respondents 5 (17%) of the respondents
facing delay in processing. 9 (30%) of the respondents facing low interest rates. 1
(3%) of the respondents facing high penal charges. 5 (17%) of the respondents facing
lack of Customer Friendly Attitude. 3 (10%) of the respondents facing lack of
information. 1 (3%) of the respondents facing long lock in period. 6 (20%) of the
respondents facing other problems regarding Post Office Saving Schemes.

16 DO YOU FEEL POST OFFICE SAVING SCHEMES ARE

BETTER THAN OTHER OPTIONS

BETTER OR NOT FREQUENCY PERCENTAG

E%

YES 23 77 %

NO 7 23 %

TOTAL 30 100 %

BETTER OR NOT

23%

YES
NO
77%
From the above table it shows that out of 30 respondents 23 (77%) of the sample
respondents feel Post Office Saving Schemes are better than other option. 7 (23%) of
the respondents feel Post Office Saving Schemes are not better than other option.

17. IF YES, STATE THE REASON

REASON FREQUENCY PERCENTAGE

%

SAFETY 16 53 %

ATTRACTIVE RETUNS 6 20 %

PROMPT PAYMENT 0 0%

CHEQUE FACILITY 1 3%

LOAN AGAINST PROPERTIES 2 7%

CONVENIENT TO OPERATE 5 17 %

OTHERS 0 0%

TOTAL 30 100 %
 REASONS

0%
SAFETY
17%
ATTRACTIVE RETUNS
7%
PROMPT PAYMENT
3%
53% CHEQUE FACILITY
0%
LOAN AGAINST PROPERTIES
20%
CONVENIENT TO OPERATE
OTHERS

From the above table it shows that out of 30 respondents following are the
respondents those who are feel Post office savings are better option than other
schemes. 16 (53%) of the respondents are agree because of safety. 6 (20%) of the
respondents are agree because they get attractive returns. 0 (0%) are the respondents
are prompt payment. 1 (3%) of the respondents are because of Chef Queue
facility. 2 (7%) of the respondents are because of loan against properties. 5
(17%) of the respondents are because of convenient to operate. 0 (0%) are the
respondents are others.
18. SATISFACTION LEVEL

SATISFACTION FREQUENCY PERCENTAGE

%

SATISFIED 20 67 %

HIGHLY SATISFIED 6 20 %

DISSATISFIED 4 13 %

HIGHLY DISSATISFIED 0 0%

TOTAL 30 100 %

SATISFACTION

0%
13%

20% SATISFIED
HIGHLY SATISFIED
67% DISSATISFIED
HIGHLY DISATISFIED
From the above table out of 30 respondents 20 (67%) of the sample respondents are
satisfied with the Post office saving schemes. 6 (20%) of the sample respondents are
Highly satisfied with the Post office saving schemes. 4 (13%) of the sample
respondents are Dissatisfied with the Post office saving schemes. 0 (0%) of the
sample respondents are Highly Dissatisfied with the Post office saving schemes.

19. IF NOT SATISFIED POINT OUT THE REASON

NOT SATISFIED FREQUENCY PERCENTAGE

%

INCOME IS INADEQUATE 0 0%

COST OF LIVING IS TOO MUCH 0 0%

ALTERNATIVE SAVING 0 0%
OPTION IS AVAILABLE

TAX BENEFIT IS LOW 3 75 %

LOW RATE OF INTEREST 1 25 %

TOTAL 4 100 %
 NOT SATISFIED

0%

0% 0% INCOME IS INADEQUATE

25% COST OF LIVING IS TOO MUCH

ALTERNATIVE SAVING OPTION

IS AVAILABLE
75% TAX BENEFIT IS LOW

LOW RATE OF INTEREST

From the above table it shows that out of 30 respondents following are the
respondents who are not satisfied with the Post Office saving schemes. 0 (0%) of the
respondents are having Income is Adequate. 0 (0%) of the respondents are having
Cost of Living is too much. 0 (0%) of the respondents are having Alternative saving
option is Available. 3 (75%) of the respondents are having Low Tax Benefits. 1 (25%)
of the respondents are having low Rate of interest.
 CHAPTER 5
CONCLUSION
AND
BIBLIOGRAPHY
5.1 SUGGESTIONS

 The rate of interest offered by the post office should be increased.

 Lack of advertisement in postal service.
 The government has to take necessary steps to adopt advertisement strategy in
wider range.
 Lack of Technology should be incorporated in Post office.
 New schemes should be introduced by government
 Maximum tax benefit should be given by government.
 More awareness must be created about the schemes introduced.
 Investors have to invest their money for longer period that they will get more
benefit.
 Increased in the amount of investment in post office.
 Tax relief is also biggest boon for investing their money in post office savings
scheme
 Gradually, technology needs to be implemented in this sector for its
progressive growth and create speedy transaction models.
 Tax benefits are attached only too few schemes in post office but also can be
extended too many schemes.
5.2 CONCLUSION
In this study I have made an attempt to study on investor’s attitude towards
postal saving schemes. The investor’s have been approached and untainted data for
analysis. The post office saving schemes is the very best schemes in central
government schemes. All people belonging to different occupation use postal service.
Both literate and illiterate people use the postal service. When compare to bank, post
office provide more rate of interest. Senior citizens are much benefited by post office
schemes. There is no complicated procedure in making investment in post office but
the return is more when compared to bank. All the post offices are computerized
today and the Speed post facility is also available. The post office has traditionally
served as a financial institution for millions of people in the urban areas. It plays a
vital role in urban areas. It connects these urban areas with the rest of the country and
also provides banking facilities in the absence of banks in the urban areas. If the
above mentioned suggestions are implemented by the postal Department, it will
increase the number of postal savings investors. More awareness must be created
among the people about the schemes introduced. The rate of interest offered by the
post office should be increased. Tax benefits are attached only too few schemes in
post office but also can be extended too many schemes. Lack of Advertisement in
postal services, the government has to take necessary steps to adopt advertisement
strategy in wider range. Latest technology should be incorporated in post office to
serve the public in an efficient manner, thereby reducing the transaction time.
BIBLIOGRAPHY

BOOKS

 Investment Planning by An kit Gala in the year 2015

 Rich dad’s Guide to investing by Robert Kiyosaki in the year 2011.
 Research Methodology

JOURNALS

 Anand M Et Al in the year (2013) in his paper focuses on the performance

aspects of India postal services and its future growth strategy.
 Dipankar Malankar in the year (2013) reveals through the paper the role
played by post office in the financial inclusion and the challenges faced by the
department of post.
 Ritik Agarwal in the year (2012) Concludes in her study the various factor
which focus on influencing the investor to invest among the different savings
schemes of the post offices.
 Vishal Mehta and Anil Mirchandani in his research paper he Focus on the
investment avenues for investing in the post office savings schemes.
 K Gayathri in the year (2014) the paper studies in general the attitude of the
investors towards the different schemes with the postal offices. It
 Thabiso John Mokiena and Charles Mbohwa in the year (2013) he Discuss in
the paper about the performance management of postal organization.

WEBSITES

 http://www.indiapost.gov.in/posb.aspx
 http://en.m.wikipedia.org/wiki/india_post10
 http://www.ea-journals.org
 http://www.sodhganda.com
CHAPTER 7
APPENDIX
 Questionnaire
1. Age
20-30
30-40
40-50
>50.
2. Gender
Male
Female
3. Married Status
Married
Single
4. Educational Qualification
SSC HSC
Graduation Post Graduation
5. Occupation

Agriculture Business

Govt Employee Professional

Housewife Other
6. Monthly Income
20,000-35,000 36,000-50,000
51,000-65,000 66,000-80,000
7. Earnings members in your Family
1 2
3 >3
8. No of dependent members
1 2
3 >3
9. Sources of income for your savings in Post Office
Salary Income Business Income
 Agriculture Income Interest Earned
Through rental income Children’s Income
10. Amount of savings per month in Post Office
Below 1000 1000-2000
2000-3000 above 3000
11. No of years of your saving in post office saving schemes
1-3yrs 3-5yrs
5-7 yrs above 7 yrs
12. Source of knowledge about post office saving schemes
Friends Relatives
Advertisement Agent
Post office employees other
13. Under which scheme of deposit do you prefer
Post office monthly income scheme
Post office time deposit
Post office saving account
Post office recurring deposit account
Public Provident fund
National Savings Certificate
14. Utilization of Maturity
No reinvestment
Invest in other post office saving schemes
Invest in other investment option
Redeposit in the same scheme
Other
15. Major problem faced by you while making deposit in post office saving
scheme
Delay in processing
Interest is low
High penal charges
Lack of customer friendly attitude
Lack of information
Long lock - in - period
Others
16. Do you feel post saving schemes are better than other option
Yes
No
17. If yes, state the reason
Safety Attractive returns
Prompt payment Cheque facility
Loan against properties Convenient to operate
Others
18. Are you Satisfied towards post saving schemes
Satisfies Highly Satisfied

Dissatisfied Highly Dissatisfied

19.If not satisfied, point out the reasons
Income is inadequate
Cost of living is too much
Alternative saving option is available
Tax benefit is low
Education cost is high
Low rate of interest
20. Your Feedback Regarding Postal saving Schemes
___________________________________
___________________________________

Signature

Name: