Chapter 1

1) Introduction
a. Theoretical aspect

I. Meaning of deposit

A deposit account is a current account, savings account, or other type of bank account, at a
banking institution that allows money to be deposited and withdrawn by the account holder.
These transactions are recorded on the bank's books, and the resulting balance is recorded as a
liability for the bank, and represent the amount owed by the bank to the customer. Some banks
charge a fee for this service, while others may pay the customer interest on the funds deposited.

Meaning in financial term : An amount of money placed with a financial institution either at call
(redeemable or withdrawable on demand) or for a fixed period. If fixed, the deposit would earn a higher
rate of interest and be called a 'fixed' or 'term' deposit.

Major types
 Checking accounts: A deposit account held at a bank or other financial institution, for the
purpose of securely and quickly providing frequent access to funds on demand, through a
variety of different channels. Because money is available on demand these accounts are
also referred to as demand accounts or demand deposit accounts.

 Savings accounts: Accounts maintained by retail banks that pay interest but can not be
used directly as money (for example, by writing a cheque). Although not as convenient to
use as checking accounts, these accounts let customers keep liquid assets while still
earning a monetary return.

 Money market account: A deposit account with a relatively high rate of interest, and short
notice (or no notice) required for withdrawals. In the United States, it is a style of instant
access deposit subject to federal savings account regulations, such as a monthly
transaction limit.

 Time deposit: A money deposit at a banking institution that cannot be withdrawn for a
preset fixed 'term' or period of time. When the term is over it can be withdrawn or it can
be rolled over for another term. Generally speaking, the longer the term the better the
yield on the money.
  Certificates of deposits : With certificates of deposit (CDs), a bank receives a deposit and
issues a certificate to the customer. A CD is a short- or medium-term investment tool that
pays interest on deposited funds. The interest rate is generally slightly higher than the rate
on savings accounts. Money deposited into a CD must be kept there for a specified period
of time. If the CD is cashed in before the specified date, the depositor pays a penalty.

Deposits forms

 Demand Deposit

Here money is not deposited for a specific time period. Investor can withdraw money at any
time. Bank is responsible to return the money on customer’s demand. This account allows you to
demand your money at any time.

 Term Deposit

Under this scheme money is deposited for a fixed period of time so it is also called Fixed
Deposit. Investor can withdraw the money only after the time period. Premature withdrawals are
also allowed by paying a penalty. Interest is calculated on monthly, quarterly or yearly depends
on the bank and scheme. Many banks offers loan or overdraft facility as an added features with
fixed deposits. Term deposits is a safe investment and it is therefore a very good option for
conservative, low-risk investors.

 Recurring Deposit

This is another type of fixed deposit in with investor pay a small amount every month for a
specific time period. For example pay Rs.1000/- every month for a period of 5 years. After 5
years he will get the principle with interest accumulated. A Recurring Bank Deposit is a good
option for regular savings.

 Fixed Deposit

This is a deposit product where you deposit a certain sum of money with the bank for a specific
duration of time. As per the deposit agreement you are expected to let the money be with the
bank based on the deposit tenure. Hence the interest offered on such deposits is higher than
normal deposits. Also you will attract a penalty charge for pre-closing such deposits .

 Saving Account

This is a kind of demand deposit with limited number of withdrawals during any specific period.
Savings Accounts  provides principal security and a modest interest rate. Now banks also put
some restriction on the minimum balance. If customer don’t maintain the minimum balance
customer has to pay a penalty. Now saving account comes with many features like ATM and
Debit Card, Cheque Book, Free Internet Banking with Bill Pay, Fund Transfer, Prepaid mobile
charging, Free Telephone Banking etc. The money in SB accounts earn an interest of around
3.5% per year .
  Current Account

These are similar to Savings accounts with two small differences. One is, the money in a current
account does not earn interest and two is, you can withdraw any number of times. This account is
for business people who would have high number of transactions in one single day.

There are many different Current Accounts available in today. From specialist young person’s
bank accounts to Current Accounts (with overdraft), Cheque Accounts, Basic Bank
Accounts, Student Accounts, Graduate Accounts, Foreign Currency Accounts and Current
Accounts with special offers.

 If you are looking for a

long term safe investment option - Fixed Deposit is the best option.

Salaried person and want to invest a small amount every month- recurring deposit.

Since all private sector and nationalized banks follow the Reserve Bank of rules and regulations
it is a very safe method of Investment.

Apart from these basic deposit patterns different bank have different investment options and
criteria. Also interest rate varies from bank to bank. To attract more customers banks offers
different fixed deposit schemes like Tax Saver Fixed deposits, Fixed deposits with life
insurance, health insurance, free credit card, instant loan facility, pre-approved loans etc.

II. Public banks

Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks
which were nationalised on July 19, 1969. Its predecessor, in the Public Sector Banks, the United
Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Comilla
Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd.
(1922) and Hooghly Bank Ltd. (1932).

Oriental Bank of Commerce (OBC), a Governmet of India Undertaking offers Domestic, NRI
and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun
District (UP) and Hanumangarh District (Raiasthan) disbursing small loans. This Public Secotor
Bank India has implemented 14 point action plan for strengthening of credit delivery to women
and has designated 5 branches as specialized branches for women entrepreneurs.

The following are the list of Public Sector Banks in India

 Allahabad Bank
 Andhra Bank
 Bank of Baroda
  Bank of India
 Bank of Maharastra
 Canara Bank
 Central Bank of India
 Corporation Bank
 Dena Bank
 IDBI Bank
 Indian Bank
 Indian Overseas Bank
 Oriental Bank of Commerce
 Punjab & Sind Bank
 Punjab National Bank
 Syndicate Bank
 UCO Bank
 Union Bank of India
 United Bank of India
 Vijaya Bank

List of State Bank of India and its subsidiary, a Public Sector Banks

 State Bank of India

o State Bank of Bikaner & Jaipur
o State Bank of Hyderabad
o State Bank of Indore
o State Bank of Mysore
o State Bank of Saurastra
o State Bank of Travancore

III. Private banks

Private banking in India was practiced since the begining of banking system in India. The first
private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of
the fastest growing Bank Private Sector Banks in India. IDBI ranks the tength largest
development bank in the world as Private Banks in India and has promoted a world class
institutions in India.

The first Private Bank in India to receive an in principle approval from the Reserve Bank of
India was Housing Development Finance Corporation Limited, to set up a bank in the private
sector banks in India as part of the RBI's liberalisation of the Indian Banking Industry. It was
incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and
commenced operations as Scheduled Commercial Bank in January 1995.
ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has
a pride of place for having the first branch inception in the year 1934. With successive years of
patronage and constantly setting new standards in banking, ING Vysya Bank has many credits to
its account.

List of Private Banks in India

 Bank of Punjab
 Bank of Rajasthan
 Catholic Syrian Bank
 Centurion Bank
 City Union Bank
 Dhanalakshmi Bank
 Development Credit Bank
 Federal Bank
 HDFC Bank
 ICICI Bank
 IndusInd Bank
 ING Vysya Bank
 Jammu & Kashmir Bank
 Karnataka Bank
 Karur Vysya Bank
 Laxmi Vilas Bank
 South Indian Bank
 United Western Bank
 UTI Bank

IV. Post office

There are many deposits schemes are available such as

 PostOffice Savings Account

 5-YearPost Office Recurring Deposit Account
 PostOffice Time Deposit Account
 PostOffice Monthly Income Account
 15year Public Provident Fund Account
 KisanVikas Patra
 National Savings Certificate (VIII issue)
 Senior Citizens Savings Scheme

Banks available in Jhansi city

Public Bank Private Bank Regional Rural Bank

Central bank of India HDFC Gramin bank

Corporation bank AXIS
Dena bank ICICI
IDBI YES
Indian oversees bank
Oriental bank of commerce
Allahabad bank
Bank of baroda
Bank of India
Bank of Maharashtra
Canara bank
Punjab & Sind bank
Punjab National bank
SBI
State bank of Bikaner & Jaipur
State bank of Indore
Syndicate bank
Union bank of India
Vijaya bank
Uco bank

b. Reasons for choosing this topic

Due to literacy rate increased so there are more educated people now
they think about future beside basic neccesaties (food, shelter, cloth)
because of this , I just want to know the individual investor pattern
regarding awareness of the deposits .

c. Review of literature
Review of literature present a brief review concerning customer satisfaction
towards services provided by banks and how it is interpreted differently
different people.
An important and crucial aspect of a research locate, read and evaluate the
past as well as the current literature concerned with the planned
investigation.
Brahmanandam and Narayana (1990) in their paper,” Customer
Services in Commercial Banks”, studies the extent of customer
satisfaction with the service of bank. The exploratory research was used.
The 400 respondents were undertaken in the city of Gunter, Andhra
Pradesh. The respondents were satisfied with facilities like opening an
account, punctuality of opening the counters, withdrawing of cash, cheque
book operations, depositing cash, collection of cheque, enchasing demand
draft. They suggested for further impartment there were a need of
attitudinal changes in the bank staff towards providing good consumer
services, frequent contacts with customer, and analyses of individual
customer behavior and social aspect of customer satisfaction.
Anderson and suvillan (1993) said that satisfaction with banking services
in an area of growing interest to researcher and managers. Building on the
synthesis of exiting literature on satisfaction and relationship marketing,
this study explores the satisfaction variables within the banking industry.
The key finding of an empirical research is based on the data collected
from 555 customers. Systematic methodology, included design and
validation of questionnaire, factor analysis and regression analysis were
utilized to enhance reliability of the findings. The study reinforce that
customer satisfaction is linked with performance of the bank. The author
demonstrates how adaption of satisfaction variables can lead to better
performance.
Avkiran (1994) in his study,” Instrument to Measure Customer Service
Quality in Branch Banking”, attempts to develop an instrument for
measuring customer service quality at trading bank branches by integrating
both non controllable and controllable potential variables. The predicitive
model in the study uses the big business drivers as a major trading bank as
potential variables that measure the capacity to generate easily business. A
robust research takes the study through multiple stages of development
where the instrument is protested and piloted. According to the author, the
instrument can be applied to evaluate performance. It also helps to
diagnose the problems in delivery of services.
Nidhi Tanwar (2010) in her study, “customer satisfaction towards
services provided by banks” , attempts to reveals that to improve
 services quality ,both banks (public vs private) should deliver time to
time information about their new scheme / services and also should
provide extra facilities to retain old customers. Bank’s employees should
deal politely and friendly for establishing healthy rapport with customers
and they should keep customer’s need and queries on priority. The overall
customer’s attitude towards bank’s services is that they are satisfied with
services provided by bank but still they expect more services to be
provided.

d. Hypothesis
Hypothesis is an assumption to be tested.A research hypothesis can be a
predictive statement, capable of being tested by scientific methods, that
relates an independent variable to some dependent variable. The null
hypothesis taken for the present study is described below:
H0:µ1 = µ2 ( There is no significant difference between the mean
satisfaction of public and private sector banks regarding deposit schemes,
Jhansi city)
Against null hypothesis, Alternative hypothesis say that there is significant
difference between mean satisfaction of public and private sector banks
regarding deposit schemes , Jhansi city

e. Objectives of the study

 To know the awareness level among people regarding different

deposit schemes.
 To analysis the consumer behavior regarding selection of deposit
scheme in Jhansi city.
 To compare the preference of people on the basis of pulic vs
private sector deposit schemes.
 f. Research design
Area of study – Jhansi city which includes university main campus ,
veeregnanagar , medical area ,BKD , sipri .
Data collection – research is totally based on primary data.Secondary data
has been used only for references. Research has been done by primary data
collection and primary data has been collected by interacting with various
people . The secondary data has been collected through various websites.
Samapling method – the sample is selected in a random way,irrespective
of them being investor or not or availing the services or not. It was
collected through interacting peoples face to face by formal talks . The data
has been analysied by using charts and pie charts. The group has been
selected and the analysis has been done accordingly.
Sample size – the samle size of my project is 100 .
Sampling unit- we have choosen the working people whether women or
men .

Tools and techniques for analysis –

Limitation of study-
 Time limitation.
 Research has been done in Jhansi city only.
 Some of the persons were not responsive.
 Possibility of error in data collection.
 Possibility of error in analysis of data due to small sample size.
 The analysis done may not be applicable to other areas.

Chapter 2 Theories
Chapter 3 Data analysis

Chapter 4 Conclusion

Chapter 5 References

Anderson EA and MW Sullivan (1993), “the Antecedents and consequences of customer

satisfaction for firms”, Marketing science, Vol.12 spring, pp.125-143.

Avkiran , N.K. (1994), “ Instrument to measure customer service quality in branch banking”,
International source of Marketing, Vol.12(6),pp.10-18.

Brahmanandam ,G.N. and Narayana M.S.(1990),” Customer service in Commercial bank”,

Indian journal of Marketing, pp.7-16, Vol.xx, No.5.

Nidhi Tanwar (2010),” Customer satsification towards services provided by banks (a

comparative study of public and private sector banks, Chandigarh city)”, journal of IPM
Merrut,Vol.11 No.2, pp.21-40

Chapter 6 Appendix

QUESTIONNAIRE

Dear Sir/Madam
You are requested to fill the following questionnaire in respect of our study on “A Study of
Deposit Scheme Selection Behavior of Individual Investors (Public Vs Private)”. The
information given by you is used on aggregate purpose and will not be disclosed to anyone on
individual basis.
Thanks for your cooperation.
With regards
Anamika Yadav
Research Investigator
MFC IVth Sem, Bundelkhand University, Jhansi
A. Personal profile

Name

1) Age
2) Communication Address

3) Gender
4) Nationality
5) Religion
6) Cast (Please tick) General OBC SC ST
7) Marital Status ( Please Married Unmarried Divorced Widow

tick )
8) Education Upto 8th Highschool Intermediate

Graduation Post Graduation Ph.D

9) Professional Yes (give name ) No

qualification
10) At Present Living status Alone with Family
11) Family structure Joint Nuclear
12) Members in family

S.No. Relationship with Respondant Age If any Employment

mark yes
1)
2)
3)
4)
5)
6)

13) Occupation Business Pension Service

14) If Service, it is Government Private
15) Job Nature Regular Part time

16) If Business, it is Self started Family business

17) Nature of Business Retail Wholesale Agriculture

 18) Are you member of Club Political Party NGO No

19) Your Average Monthly Below 15000 15000 to 30000

income falls under
income group ( in Rs) 30000-45000 45000 to 60000

60000-85000 Above 85000

20) What percent of your Below 10% 10%-20%

income you save ? 20%-30% 30%-40%
40%-50% More than 50%

21) What is the composition Shares Debentures

of your saving ( show in Deposits Mutual Funds
percentage% of your saving) Insurance Policies jewellery
Real Estate ( Land,Building)

B. Awareness regarding deposits

1) Do you have awareness regarding institutions offering different deposits schemes?

Private Sector Yes No give name
Nationalised bank Yes No give name
Cooperative Yes No give name
Regional rural bank Yes No give name
Postoffice Yes No give name

2) Which institutions you have selected for deposit? (please tick )

Private banks Nationalised banks Coperative
Regional Rural Post office Other

3) Type of deposit scheme which you have selected ?

Saving RD FD Any other
 4) On what basis you have selected your deposit schemes ?

For high degree of return (Profit) For safety of money

For tax planning Liquidity

5) Investment in various deposits schemes is

Suggested by anyone(name the relation )
Self judgement

6) Role of Size of Family in Selection of deposit Schemes

Very Much Sufficient Not Very Much

Can’t Say

7) On what basis you have selected institutions (Give ranking 1 to 7)

Public sector Bank Private Sector Bank Post Office

 High return  High return  High return
 Liquidity  Liquidity  Liquidity
 Tax saving  Tax saving  Tax saving
 Nearness to your home  Nearness to your home  Nearness to your home
 Other Facilties  Other Facilties  Other Facilties
 Assurity of deposits  Assurity of deposits  Assurity of deposits
 Transparency in  Transparency in  Transparency in
transaction transaction transaction

8) How much time you spend on an average while choosing any deposit schemes?
 9) Are you satisfied with performance of your present deposit schemes?
Yes No Can’t Say

10) What is your future plans towards deposit schemes? (Please tick)
Continue with same
Try different ( Please mention)

Signature of Investigator Signature of Respondent