Investors Attitude Towards Post Office Saving Schemes in Cumbum Town

INTERNATIONAL RESEARCH JOURNAL OF MANAGEMENT AND COMMERCE
VOLUME-1, ISSUE-8 (November 2014) ISSN: (2348-9766)
INVESTORS ATTITUDE TOWARDS POST OFFICE SAVING

SCHEMES IN CUMBUM TOWN
Ms. K. Gayathri M.Com, M.Phil.,

Assistant Professor in commerce,
Nadar Saraswathi College of Arts & Science, Theni.
ABSTRACT
The present study is based upon various small savings scheme in Post office. The
small savings schemes are provide safe and attractive investment options to the public and
mobilize resources for development. The purpose of research is to study the Investor’s
attitude towards small saving schemes in post office at Cumbum town. Because in these
area more farmers are living. They need small savings habits in their life. So I decide to
research my analysis in this topic oriented.
INTRODUCTION
The post office provide a variety of small savings schemes to suit an individual’s
convenience in availing tax rebate besides helping to multiply money rapidly backed by the
security of the government. 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 following act:
I . Government Savings Bank Act 1 1873
II. Government savings Certificate Act 1959
III. Public Provident fund 1968
History of Post Office Savings Banks in India(POSBs)

POSBs in India was established in 1882 by British Colonizers to Mobilizes savings
and operate as an agency for the ministry of finance Act of 2000. There are 154000 POSBs
in India out of which 89 Percentage were located in rural area. In the tonsure 80 percent of
savings used for fund deficits in state and 20 percent were allocated to central government.
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India post is a large organization with over one million employees and having 154000
post office branches. They handling sixteen millions various item of mailing were transfer in
India.
Type of Small saving scheme in Post Office:
Following schemes are offered by Post Office Savings Bank.
 Post office monthly income

 Kisan Vikaspatra scheme
 National Savings Certificate VIII Issue
 Public Provident Fund
 Post office recurring Deposit
 Post office Time Deposit
 Postal Life Insurance Scheme, etc.,
REVIEW OF LITERATURE
The review of the earlier studies and experience of the past research works were of
gigantic help in evaluating the soundless of the concepts used and the methodology
followed. This section briefly reviews the concepts adopted in the previous studies and
specifies appropriate concepts as applicable to the present study.
According to Mr K. Shakthisrinivasan and Devi Lakshmi 1, Indian post was no alternative

than any leverage infrastructure, trust and related services into a much larger role in e-
Commerce and e-Government. The humble post is fighting a battle the swanky technology
driven new age banks.
The savings bank and postal deposits having considered to be surging well into the present
decade and it has seen a steady and consistent growth in post office deposits, fit to rival the
best performers’ in the banking industry.
Salam Abdu and Kulsum Uma, et al2, in their study observed the savings behaviour in India.
The objective of study was to examine the determinants of savings by analyzing saving
behaviour in India over a period of 19 years from 1980-81 to 1998-99. They have concluded
that favourable macroeconomic environment supported by strong structural reforms
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including liberalization of financial market should help domestic saving to increase

substantially.
1. Mr.K.Shakthisrinivasan, Devi Laksmi, “ Post office savings schemes – An impetus for Rural
Investment”, Indian journal of marketing, Vol.XXXVI, No.1, Jan 2006, P.26.
2. Salam Abdu and Kulsum Uma,” Savings behaviour in India: An Empirical study”, Indian
Economic Journal, Vol.50, No.1, P.77.
STATEMENT OF PROBLEM
The general criticisms levied against post office savings schemes by investors are given
below:

Everything is maintained in paper registers. If the investor loses it even by mistakes,
he has to run from pillar to post to get their money back.

Then 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 drawback of deposit in post office saving scheme have shown a record of growth
in collections. Now, the banks have gradually increasing their deposit rate , it is tough
to the post offices to sustain the momentum of deposit mobilization.
In this context, the researcher was motivated to study the attitude of people
towards the post saving schemes. Thus, “investor attitude towards post office savings
schemes in Cumbum town” is conducted by the researcher.
SCOPE OF THE STUDY

Attitude of investors is an important aspect in investment research as small saving
constitutes an important source of investment. The result of the study will help the investor s
to know the type of savings which gives maximum return. This study covers only the
investors who are residing in the geographical location of Cumbum town.
OBJECTIVE OF THE STUDY

The present study has the following objectives:
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 To study the awareness among investors about post office savings schemes in the
study area.
 To analysis the investors attitude towards post office savings schemes.
 To study the problems of investors while investing in post offices.
 To offer suitable suggestion.
METHODOLOGY
The study is an empirical research based on the survey method through interview
schedule. The first hand data were collected from 120 respondents residing in cumbum town.
Secondary data were collected through official records of the post offices in cumbum, Books,
Journal and internet.
COLLECTION OF DATA
The present study was carried on by the research scholar was conducted during April
2014. For collection of primary data from the sample respondents of 120, the questionnaire is
called through interview schedule. The interview was quite informal and the data were filled
up by the researcher with the help of respondents. After collection of data, cross check up
made to ensure its completeness and accuracy.
TOOLS FOR ANALYSIS

In the present study used only percentage analysis and rank analysis.
ANALYSIS AND INTERPRETATION OF DATA

i) Problems regarding investment in postal saving schemes:
DISTRIBUTION OF THE SAMPLE RESPONDENTS BY PROBLEMS REGARDING

INVESTMENT IN POSTAL SAVING SCHEMES
S.No Problems Total score Rank

1. Lack of interest of employees 577 I
2. Poor response from employees 459 VI
3. Delay in Withdrawal 474 V
4. More formalities in withdrawal 486 IV
5. Poor liquidity 495 III
6. Low return 505 II
Sources: Primary data
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The above table describes the problems regarding investment in postal savings scheme
in post office. 100 out of 17 respondents were strongly agreed with the statement to lack of
interest of employees.58 out of 31 respondents were strongly agreed the respective
statement that low return while only 10 respondents were strongly disagreed the statement.
53 out of 38 respondents have strongly agreed the statement of poor liquidity. 46 respondents
were agreed with the statement more formalities in withdrawal. 38 respondents were strongly
agreed the statement delay in withdrawal. 42 respondents have strongly agreed the statement
poor response from employee s while only 6 respondents have disagreed the statement.
ii) Opinion about postal saving schemes in India:
DISTRIBUTION OF THE SAMPLE RESPONDENTS BY OPINION ABOUT POSTAL

SAVING SCHEMES IN INDIA
S.No Particulars Total score Rank
1. Safety/ Reliable 577 I
2. Variety of schemes 500 III
3. Nomination facility 459 IX
4. Tax Relief 474 VIII
5. Pledging Facility 486 VII
6. Easy transfer of amounts/ accounts 495 V
7. Loan facility 505 II
8. Agency service 474 VIII
9. Easy encashment at anywhere in India 499 IV
10. No introduction person 480 VI
Source: Primary data
From the above table the opinions of respondents about the various saving schemes offered
by the post office. Out of 68 respondents have strongly agreed the statement that the
responses to safety and reliable.43 respondents have strongly agreed that variety of scheme
while only 6 respondents have strongly disagree the statement.41 respondents strongly agreed
the statement that nomination facility. 50 out of 38 respondents were strongly agreed the
statement that tax relief. 45 respondents have strongly agree the respective statement that the
pledging facility. 53 and 38 respondents have strongly agreed the statement that the easy
transfer of amounts/accounts. 58 and 32 respondents have strongly agreed the statement loan
facility. 48 respondents were strongly agree the statement that the agency service. 37
respondents were agree the statement easy enhancement at anywhere in India.
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FINDINGS
The researcher has analysed the saving habits of the respondents by studying the attitude-
influencing factors such as monthly savings, sources of savings, motivational factors,
investment avenues, awareness about post office saving schemes, reasons for preferring post
office savings schemes, level of satisfaction and so on.
 Out of 120 respondents taken for the study 56 respondents saved between Rs.1000
in a month.
 Forty nine respondents saved from 10 to 20 percent of their total income.
 Majority of the respondents 50 saved from their regular monthly income.
 Majority of the respondents 120 were aware of postal schemes.
 Forty five respondents have been motivated to save for the benefit of children’s
education and their marriage.
 Return on investment was the main consideration for 32.5 percent of the investors.
 Regarding the preference of the investment avenues by the respondents, post office
savings schemes get the 1st rank, the insurance products receive the 2nd rank and
bank deposit secure the 3rd rank.
 Out of 120 respondents(54.2%) were save 2% to 6% of their total savings in postal
savings schemes.
 Regarding the period of deposits in post office, majority of 68 respondents save and
retain their deposits for the period of 3-5 year continuously.
 Out of 120 respondents 73(60.8%) received interest rate of 3.5%-6%.
 Post office employees influenced only 36.7% of the respondents.
 Most of the respondents (44%) get information about post office savings schemes
from the post office employee.
 Regarding the problems in post office services, lack of knowledge of employees is
considered as the major problem faced by the investors.
 It was found that 120 respondents were satisfied with the service of post office.
SUGGESTIONS
 More awareness must be created among the people about the scheme introduced.
 The rate of interest offered by the post office should be increased.
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 Tax benefits are attached only too few schemes in post office but this may be
extended to many others schemes also.
 All the forms are in Hindi and English. It should be translated into other
languages for the convenience of the public.
 Lack of advertisement is a major problem in the postal services. The government
should take necessary steps to adopt the advertisement strategy in a wider range.
 Latest technology should be incorporated in post offices to serve the public in
an efficient manner, thereby reducing the transaction time.
CONCLUSION
The post office has traditionally served as a financial institution for millions of people
in rural India. It plays a vital role in rural areas. It connects these rural areas with the rest of
the country and also provides banking facilities in the absence of banks in the rural areas. If
the above mentioned suggestions are implemented by the postal departments, it will increase
the number of postal savings investors.
REFERENCES
1. A Study on Post office Savings Schemes an impetus for rural investment, Indian
journal of marketing volume XXXVI, Number 1, Jan 2006, P.26.
2. www.Indian Invest.com
3. www.indiapost.org
4. Www. Personalfn.com
5. www.smallsaving.com
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INTERNATIONAL RESEARCH JOURNAL OF MANAGEMENT AND COMMERCE

VOLUME-1, ISSUE-8 (November 2014) ISSN: (2348-9766)

INVESTORS ATTITUDE TOWARDS POST OFFICE SAVING

Ms. K. Gayathri M.Com, M.Phil.,

I . Government Savings Bank Act 1 1873

II. Government savings Certificate Act 1959

III. Public Provident fund 1968

History of Post Office Savings Banks in India(POSBs)

Type of Small saving scheme in Post Office:

Following schemes are offered by Post Office Savings Bank.

 Post office monthly income

According to Mr K. Shakthisrinivasan and Devi Lakshmi 1, Indian post was no alternative

including liberalization of financial market should help domestic saving to increase

SCOPE OF THE STUDY

OBJECTIVE OF THE STUDY

TOOLS FOR ANALYSIS

ANALYSIS AND INTERPRETATION OF DATA

DISTRIBUTION OF THE SAMPLE RESPONDENTS BY PROBLEMS REGARDING

S.No Problems Total score Rank

ii) Opinion about postal saving schemes in India:

DISTRIBUTION OF THE SAMPLE RESPONDENTS BY OPINION ABOUT POSTAL

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