A COMPARITIVE STUDY ON INVESTORS INVESTING

IN RECURRING DEPOSIT AND FIXED DEPOSIT

S.NILANI
( 40410114)

SCHOOL OF MANAGEMENT STUDIES

SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC
JEPPIAAR NAGAR, RAJIV GANDHI SALAI, CHENNAI - 600119

1
 SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with “A” grade by NAAC I 12B Status by UGC I Approved by AICTE
Jeppiaar Nagar, Rajiv Gandhi Salai, Chennai – 600 119
www.sathyabama.ac.in

SCHOOL OF BUSINESS ADMINISTRATION

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of NILANI S 40410114 who carried out the

project entitled “A Comparative study on investors investing in recurring deposit and fixed deposit”

under my supervision from September 2021 to November 2021.

DR. D.Velumoni
Internal Guide External Guide

Dr. BHUVANESWARI G.
Dean – School of Business Administration

Submitted for Viva voce Examination held on _________________

Internal Examiner External Examiner

2
 DECLARATION

I, NILANI S (40410114) hereby declare that the Project Report entitled,

“A Comparative study on investors investing in Recurring deposit and Fixed deposit” done by me

under the guidance of DR. D. Velumoni is submitted in partial fulfilment of the requirements for the

award of Masters of Business Administration degree.

DATE:

PLACE: NILANI S

3
 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Board of Management of SATHYABAMA for their kind

encouragement in doing this project and for completing it successfully. I am grateful to them.

I convey my sincere thanks to Dr. BHUVANESHWARI G., Dean, School of Business Administration and

DR. PALANI A., Head, School of Business Administration for providing me necessary support and details

at the right time during the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my Project Guide DR.D.VELUMONI, for her

valuable guidance, suggestions and constant encouragement paved way for the successful completion of my

project work.

I wish to express my thanks to all Teaching and Non-teaching staff members of the School of Business

Administration who were helpful in many ways for the completion of the project.

NILANI S

4
 TABLE OF CONTENT

CHAPTE TITLE PAGE NO

R NO.
ABSTRACT 6

LIST OF TABLES 7

LIST OF CHARTS 8

1 INTRODUCTION 9-11

1.1 Introduction 9

1.2 Industry profile 9

2 REVIEW OF LITERATURE 12-13

3 RESEARCH METHODOLOGY 13 - 14

3.1 Need of the Study 14

3.2 Scope Of The Study 14

3.3 Objective of the study 14

3.4 Hypothesis Testing 14

4 DATA ANALYSIS AND 17-34

INTERPRETATION

FINDINGS, SUGGESTIONS AND 28-36

CONCLUSION
5.1 Findings of the Study 35
5 5.2 Suggestions 35

5.3 conclusion 36

ANNEXURE – I (Questionnaire) 37-40

5
 ABSTRACT

Bank deposits consist of money placed into banking institutions for safekeeping.
These deposits are made to deposit accounts such as savings accounts,
checking accounts, and money market accounts. The account holder has the
right to withdraw deposited funds, as set forth in the terms and conditions
governing the account agreement. There are many investment options available
in the market for people who wish to invest their money. However, they should
first study the various investment options, compare them, and then select the one
that is most suited for them. Term deposits are the most famous, preferred and
popular investment options across India. People prefer these investment tools as
their money is safe and secure in the bank. Also, they earn interest on their
investment. There are two types of Term deposits, namely, Recurring Deposit
(RD) and Fixed Deposit (FD).

The comparative study will also tell about the benefits to the investors of the
deposit, so that they will invest on the best option and get profited

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 LIST OF TABLES

TABLE PARTICULAR PAGE NO.

NO.

1 Age of respondent 16

2 Gender of respondent 17

3 Qualification of the respondent 18

4 Opinion on what basis investors will invest RD and 19

FD
5 On what basis investors will select FD 20

On what bases investors will select RD 21

7 Investing in RD will be useful for future 22

8 Investing in FD will be useful for future 23

9 RD or FD which one is best for your opinion 24

10 In which deposit you will suggest your friend and 25

relatives to invest

11 Which bank you will prefer for FD 26

12 Which bank you will prefer for RD 27

13 In what aspect you will differentiate RD and FD 28

14 Which form of investment is a useful to investment 29

RD or FD

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 LIST OF CHARTS

TABLE NO. PARTICULAR PAGE NO.

1 Age of respondent 16

2 Gender of respondent 17

3 Qualification of the respondent 18

4 Opinion on what basis investors will invest RD and 19

FD
5 On what basis investors will select FD 20

On what bases investors will select RD 21

7 Investing in RD will be useful for future 22

8 Investing in FD will be useful for future 23

9 RD or FD which one is best for your opinion 24

10 In which deposit you will suggest your friend and 25

relatives to invest

11 Which bank you will prefer for FD 26

12 Which bank you will prefer for RD 28

13 In what aspect you will differentiate RD and FD 29

14 Which form of investment is a useful to investment 30

RD or FD

8
 CHAPTER-1

1.1 INTRODUCTION OF THE TOPIC:

“A COMPARATIVE STUDY ON INVESTORS INVESTING INRECURRING DEPOSIT

AND FIXED DEPOSIT”

Setting aside a fixed amount of money every month specifically for savings or
investment is the best way for wealth maximization. If the question where to invest
arises, then everybody probably recommends Recurring Deposits (RD) of banks. FD
and RD are popular savings plans among retail investors. But, the question here is
which of the mode of investment is better than the other? RD or FD? This question
necessitates the need to compare the benefits of RD and FD to help the investors to
evaluate the differences and make a prudent decision in opting for the investment
solution that would best suit their interest. Thus, the primary interest of this paper is to
shed light on the comparison between the fixed deposit and recurring deposit, and to
help people achieve their long term financial goals.

1.2 INDUSTRY PROFILE:

RECURRING DEPOSIT:

A recurring deposit is a special kind of term deposit offered by Indian banks

which help people with regular incomes to deposit a fixed amount every month
into their recurring deposit account and earn interest at the rate applicable to
fixed deposits. It is similar to making fixed deposits of a certain amount in
monthly instalments. This deposit matures on a specific date in the future along
with all the deposits made every month. Recurring deposit schemes allow
customers an opportunity to build up their savings through regular monthly
9
deposits of a fixed sum over a fixed period of time. The minimum period of a
recurring deposit is six months and the maximum is ten years.

The recurring deposit can be funded by standing instructions which are the
instructions by the customer to the bank to withdraw a certain sum of money
from his/her savings/current account and credit to the recurring deposit
account.

When the recurring deposit account is opened, the maturity value is indicated to the
customer assuming that the monthly instalments will be paid regularly on due dates.
If any instalment is delayed, the interest payable in the account will be reduced and
will not be sufficient to reach the maturity value. Therefore, the difference in interest

will be deducted from the maturity value as a penalty. The rate of penalty will be
fixed upfront. Interest is compounded on quarterly basis in recurring deposits

FIXED DEPOSIT :

A Fixed deposit (FD) is a financial instrument provided by banks or NBFCs

which provides investors a higher rate of interest than a regular savings account,
until the given maturity date. It may or may not require the creation of a separate
account. It is known as a term deposit or time deposit in Canada, Australia, New
Zealand, India and The United States, and as a bond in the United Kingdom and
for a fixed deposit is that the money cannot be withdrawn from the FD as
compared to a recurring deposit or a demand deposit before maturity. Some
banks may offer additional services to FD holders such as loans against FD
certificates at competitive interest rates. It's important to note that banks may
offer lesser interest rates under uncertain economic conditions. The interest rate
varies between 4 and 7.50 percent. The tenure of an FD can vary from 7, 15 or
45 days to 1.5 years and can be as high as 10 years. These investments are
safer than Post Office Schemes as they are covered by the Deposit Insurance
and Credit Guarantee Corporation (DICGC). However, DICGC guarantees
amount up to ₹ 500000(about $6850) per depositor per bank. They also offer
income tax and wealth tax benefits.

10
 CHAPTER-2
REVIEW OF LITERATURE

INTRODUCTION

In this Chapter, the researcher has made an attempt to study the comparison
between the fixed deposits and recurring deposit. This attempt includes,
understanding the basic concepts of Customer Satisfaction, analysing
research studies made by earlier researchers in respect of Customer
Satisfaction in fixed and recurring deposit, for this, the researcher has used
various books, research Journals and websites. The detailed list is further
elaborated in the Bibliography. Through this Literature Survey researcher
wants to find out which are the important parameters of Customer Satisfaction
in respect of Fixed and recurring deposits

• Dr. R. Ganapathi (2010) study concluded that advertisement is a major

source to make people understand about Fixed and recurring deposit
schemes. Mostly in order to help people in high tax liability and small
investors numerous small saving schemes were mainly established. In
order to increase the deposits and to make even a lay man understand
about the deposits advertisements play a crucial role. Because safety
and security is increased when the money is invested in recurring and
fixed deposits.
• Nagpal Sushant and Bodla B. S., (2009) brings out the demographic
characteristics of investors, relationship between lifestyle clusters of the
respondents and their investment patterns and sources of information
tapped by them. The study concluded that investors prefer less risky
investments such as recurring deposits, insurance policies, fixed
deposits with banks and post office, PPF and NSC.

11
• Simon Gervais (2009) in “Behavioral Finance:

Capital Budgeting and other Investment Decisions” has made a survey

of literatures on the effects of behavioural biases on capital budget.

12
 CHAPTER-3
RESEARCH METHODOLOGY

3.1 NEED OF THE STUDY:

Research methodology is mainly needed for the purpose of framing the research
process and the designs and tools that are to be used for the project purpose.
Research methodology helps to find the customer satisfaction based on product.
This time research methodology is framed for the purpose of finding the level of
Customer satisfaction towards the investment in fixed deposit and recurring
deposit.

3.2 SCOPE OF STUDY

Investment in fixed and recurring deposit is happening in India in a big way. The study
is to identify the comparison between fixed deposit and recurring deposit . The
comparative study is conducted to reveal the consumer's satisfaction towards the
investment in the fixed and recurring deposit. This comparative study will help to find
out whether the fixed and recurring deposits will exceed the Satisfaction level of using
the investment opportunities and increase the response of more people to invest on
the savings.

3.3 OBJECTIVE OF THE STUDY

• 3.3.1 PRIMARY OBJECTIVE :

o To study the comparison between the investors investing in recurring

deposit and fixed deposit.

• 3.3.2 SECONDARY OBJECTIVE:

o To find out the major factors that influences the customer to take
Fixed and recurring deposit.
o To analyze the customer opinion/experience on investment in
13
 fixed and recurring deposit.
o To study the value of investment in fixed and recurring deposit.
o To obtain feedback on the enquiries they get through while
customers invest in fixed or recurring deposit.

3.4 HYPOTHESIS TESTING :

➢ To study comparison between the age of the investors and investing in
fixed deposit and recurring deposit.
• Null hypothesis: There is no significant difference between fixed
deposit and recurring deposit
• Alternate hypothesis: There is a difference between fixed deposit
and recurring deposit
➢ To analyse the customer opinion/experience on investment in fixed and
recurring deposit
• Null Hypothesis: There is no significant difference between
customer opinion /experience on investing in fixed deposit and
recurring deposit.
• Alternate Hypothesis: There is a significant difference between
customer opinion/experience on investing in fixed deposit and
recurring deposit.

14
SPSS TOOL:

CHI-SQUARE TEST: A chi-square statistic is one way to show a relationship

between two categorical variables. In statistics, there are two types of
variables: numerical (countable) variables and non-numerical (categorical)
variables. The chi-squared statistic is a single number that tells you how much
difference exists between your observed counts and the counts you would
expect if there were no relationship at all in the population.
The application of chi-square in our research will be used in comparison of age of
the respondents.

ANOVA: Analysis of variance is a collection of statistical models and their

associated estimation procedure used to analyse the difference among means.

15
 CHAPTER- 4

DATA ANALYSIS AND

INTERPRETATION

TABLE NO: 1 - Age wise classification of respondents:

Age No. of Respondent Percentage

18 – 25 8 16

26 – 40 3 72
6
41 – 60 4 8

61 Above 2 4

Total 5 100

NO.OF RESPPONDENTS
18 – 25 26 – 40 41 – 60 61 Above

4%

8% 16%

72%

CHART NO: 1- Age wise classification of respondents:

16
Interpretation :
From the above table shows that the age of the response, 72% of 26 - 40, 16% of 18
– 25, 8% of 31-40 and 4% of 40- above of the respondent.

Inference :

Majority of 72% of respondents are 26-40 age.

TABLE NO: 2 - Gender wise classification of respondent:

Gender No of respondent Percentage

Male 18 36

Female 32 64

Total 50 100

CHART NO: 2 - Gender wise classification of respondent:

No. of Respondent

80

60

40

20

0
8 16

26 – 40 41 – 60

Interpretation

From the above table shows that the gender of the response, 36% of
male and remaining 64% of female respondent.

17
Inference

Majority (64%) of respondents are female.

TABLE NO: 3 - Qualification of respondent

Particular No. of Respondent Percentage

Employed 35 70

Unemployed 5 10

student 10 20

Total 50 10
0

Chart No: 3 Qualification of the respondents :

NO.OF RESPONDENTS
Employed Unemployed student

20%

10%

70%

INTERPRETATION

From the above table shows that qualification of the respondents, 70% of
employed of the responses, 20% of student of the responses, 10% of unemployed
of the responses.
INFERENCE

70% of the respondents are employed qualification of the response is majority.

18
TABLE NO: 4 Give your opinion on what bases you will invest on RD and FD

Particular No. of Respondent Percentage

Savings mind set 18 36

Interest provided by bank 10 20

Long term benefit 12 24

Facility of 8 16
prematured
withdrawal
others 2 4

Total 50 100

CHART NO: 4 Give your opinion on what basis you will invest on RD and FD

NO.OF RESPONDENTS
36

24
20
18
16
12
10
8
4
2

Savings mind Interest Long term Facility of others

set provided by benefit prematured
bank withdrawal

19
INTERPRETATION

From the above table shows that the opinion on what bases investors will invest on
RD and FD,36 % of savings mind set, 20% of interest provided by bank, 24% of long
term benefits, 16% of facility of premature withdrawal and 4% of others.

INFERENCE

36% of the respondent have saving mind set of the response is majority

TABLE NO: 5 On what basis you will select Fixed Deposit

Particular No. of Respondent Percentage

Rate of interest 12 24

Time 8 16

Fixed returns 20 40

Tax benefits 5 10

Safe investments 5 10

Total 50 100

CHART NO: 5 On what basis you will select Fixed Deposit

NO. OF RESPONDENTS
Rate of interest Time Fixed returns Tax benefits Safe investments

10%
24%
10%

16%
40%

20
INTERPRETATION

From the above table shows that on what bases investors will select Fixed Deposit, 24% of rate of
interest, 16 % of time, 40% of fixed returns, 10% of tax benefits and 10% of safe investment.
INFERENCE

40% of the respondent select fixed return basis of the response is majority

TABLE NO: 6 On what basis you will select Recurring Deposit

Particular No. of Respondent Percentage

Rate of interest 10 20

Time 14 28

Simple documentation 5 10

Small amount 11 22
of investment

Safe and secure 10 20

Total 50 100

CHART NO: 6 On what basis you will select Recurring Deposit

NO. OF RESPONDENTS
Rate of interest Time
Simple documentation Small amount of investment
Safe and secure

20% 20%

22%
28%
10%

21
INTERPRETATION

From the above table shows that on what bases investors will select Recurring
Deposit, 20% of rate of interest, 28% of time, 10% of simple documentation, 22% of
small amount of investment and 20% of safe and secure.

INFERENCE

28% of the respondent select time basis of the response is majority

TABLE NO: 7 investing in recurring deposit will be useful for future purpose

Particular No. of Respondent Percentage

Strongly agree 30 60

Agree 8 16

Neither agree nor disagree 4 8

Disagree 6 12

Strongly disagree 2 4

Total 50 100

CHART NO: 7 investing in recurring deposit will be useful for future purpose

NO.OF RESPONDENTS
70
60
50
40
30
20
10
0
Strongly agree Agree Neither agree Disagree Strongly
nor disagree disagree

22
INTERPRETATION

From the above table shows that investing in recurring deposit will be useful for
future purpose, 60 % of strongly agree, 16 % of agree, 8% of neither agree nor
disagree, 12% disagree and 4% of strongly disagree..

INFERENCE

60% of the respondent strongly agree of the response is majority

TABLE NO: 8 investing in Fixed deposit will be useful for future purpose

Particular No. of Respondent Percentage

Strongly agree 20 40

Agree 15 30

Neither agree nor 5 10

disagree
Disagree 8 16

Strongly disagree 2 4

Total 50 100

CHART NO: 8 investing in Fixed deposit will be useful for future purpose

NO. OF RESPONDENTS
40

30

20
15 16
10
8
5 4
2

Strongly Agree Neither Disagree Strongly

agree agree nor disagree
disagree

23
INTERPRETATION

From the above table shows that investing in fixed deposit will be useful for future
purpose, 40 % of strongly agree, 30 % of agree, 10% of neither agree nor disagree,
16% disagree and 4% of strongly disagree..

INFERENCE

40% of the respondent strongly agree of the response is majority

TABLE NO: 9 Recurring deposit or Fixed deposit which one is best for your opinion

Particular No. of Respondent Percentage

Recurring deposit 35 70

Fixed deposit 15 30

Total 50 100

CHART NO: 9 Recurring deposit or fixed deposit which one is best for your opinion

NO.OF RESPONDENTS
Recurring deposit Fixed deposit Total

35%

50%

15%

INTERPRETATION

24
 From the above table shows that recurring deposit or fixed deposit which one is
best for investors opinion, 35% of recurring deposit and 15% of fixed deposit.
INFERENCE

35% of the respondent opinion on recurring deposit of the response is majority

TABLE NO: 10 would you suggest your friend or relatives to invest in which deposit

Particular No. of Respondent Percentage

Recurring deposit 38 76

Fixed deposit 12 24

Total 50 100

CHART NO: 10 would you suggest your friend or relatives to invest in which deposit

NOI. OF RESPONDENTS
Recurring deposit Fixed deposit

76

38
24
12

1 2

INTERPRETATION

From the above table shows that suggestion of investors to invest in which deposit,
76% of recurring deposit and 24% of fixed deposit.

INFERENCE

76% of the respondent suggest on recurring deposit of the response is majority

25
 TABLE NO: 11 which bank you will prefer for fixed deposit

Particulars No. of Respondent Percentage

Indian bank 13 26

Canara bank 5 10

Indian overseas bank 10 20

Central bank of India 5 10

State bank of India 8 16

Union bank 9 18

Total 50 100

CHART NO: 11 which bank you will prefer for fixed deposit

NO.OF RESPONDENTS
Indian bank Canara bank Indian overseas bank
Central bank of India State bank of India Union bank

18%
26%

16%
10%
10%
20%

INTERPRETATION

From the above table shows that which bank investors will prefer for fixed deposit,
26% of Indian bank, 10% of canara bank, 20% of Indian overseas bank, 10% of
central bank of India, 16% of state bank of India and 18% of union bank.
INFERENCE

26
26% of the respondent prefers Indian bank for fixed deposit of the response is majority

TABLE NO: 12 which bank you will prefer for recurring deposit

Particulars No. of Respondent Percentage

Indian bank 3 6

Canara bank 5 10

Indian overseas bank 4 8

HDFC bank 15 10

State bank of India 10 20

Axis bank 13 26

Total 50 100

27
CHART NO: 12 which bank you will prefer for recurring deposit

NO.OF RESPONDENTS
Indian bank Canara bank Indian overseas bank
HDFC bank State bank of India Axis bank

6%
26% 10%
8%

20% 30%

INTERPRETATION

From the above table shows that which bank investors will prefer for recurring
deposit, 7% of Indian bank, 12% of canara bank, 10% of Indian overseas bank, 13%
of HDFC bank, 25% of state bank of India and 33% of Axis bank.

INFERENCE

33% of the respondent prefers Axis bank for recurring deposit of the response is majority

TABLE NO: 13 in what aspects you will differentiate recurring deposit and
fixed deposit

Particulars NO. of respondents Percentage

Interest rate 7 14

Time 8 16

RD better than FD 25 50

FD better than RD 10 20

Total 50 100

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CHART NO: 13 in what aspects you will differentiate recurring deposit
and fixed deposit

NO.OF RESPONDENTS
50

25
20
14 16
8 10
7

Interest rate Time RD better than FD FD better than RD

INTERPRETATION

From the above table shows that in what aspect the investors will differentiate RD
and FD, 14% of interest rate, 16% of time, 50% of RD better than FD, 20% of FD
better than RD.

INFERENCE

50% of the respondent differentiates RD better than FD of the response is majority

TABLE NO: 14 is RD is a useful form of investment or FD is a useful form

of investment

Particulars NO. of respondents Percentage

Strongly agree 24 48

Agree 6 12

Neutral 4 8

FD 10 20

Strongly FD 6 12

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 Total 50 100

CHART NO: 14 Is RD is a useful form of investment or FD is a useful form of

investment

NO.OF RESPONDENTS

48

24
20

12 10 12
8
6 6
4

Strongly agree Agree Neutral FD Strongly FD

INTERPRETATION

From the above table shows that Is RD is a useful form of investment or FD is a

useful form of investment, 12% strongly FD, 20% FD, 8% OF neutral, 12% of RD
and 48% of strongly RD.

INFERENCE

48% of the respondent Strongly RD of the response is majority

30
 CHI SQUARE

TABLE – 1

Null hypothesis (H0): There is no significant difference between age

of the respondents with fixed deposit and recurring deposit.

Alternative hypothesis (H1): There is significant difference between age of

the respondents with fixed deposit and recurring deposit.

Crosstabs:

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
AGE OF THE RESPONDENTS * 50 100.0% 0 0.0% 50 100.0%
FIXED DEPOSIT AND
RECURRING DEPOSIT

AGE OF THE RESPONDENTS * FIXED DEPOSIT AND RECURRING DEPOSIT Cross tabulation

FIXED DEPOSIT AND RECURRING

DEPOSIT
RECURRING
FIXED DEPOSIT DEPOSIT Total
F THE RESPONDENTS 18 TO 25 Count 4 9 13
% within AGE OF THE 30.8% 69.2% 100.0%
RESPONDENTS
26 TO 40 Count 18 13 31
% within AGE OF THE 58.1% 41.9% 100.0%
RESPONDENTS
41 TO 60 Count 4 0 4
% within AGE OF THE 100.0% 0.0% 100.0%
RESPONDENTS
61 AND ABOVE Count 1 1 2
% within AGE OF THE 50.0% 50.0% 100.0%
RESPONDENTS
Total Count 27 23 50
% within AGE OF THE 54.0% 46.0% 100.0%
RESPONDENTS
31
CHI- SQUAR TEST:

Chi-Square Tests

Asymptotic
Significance (2-
Value df sided)
Pearson Chi-Square 6.451a 3 .092
Likelihood Ratio 8.008 3 .046
Linear-by-Linear Association 3.557 1 .059
N of Valid Cases 50

INTERPRETATION:

Since p value 0.092 is greater than 0.05 null hypothesis is accepted, alternative
hypothesis is rejected. Hence, there is no significant difference between age of the
respondents and deposit of the respondents.

ANOVA

TABLE – 1

One – way Null hypothesis (H0): There is no significant difference between investor’s opinion/
experience of the respondents on investing in fixed deposit and recurring deposit.

Alternative hypothesis (H1): There is significant difference between investor’s opinion/

experience of the respondents on investing in fixed deposit and recurring deposit

ONEWAY ANOVA

95% Confidence Interval for Mean

N Mean Std. Deviation Std. Error Lower Bound Upper Bound M

RATE OF INTEREST 39 1.13 .339 .054 1.02 1.24

TIME 5 1.60 .548 .245 .92 2.28

32
FIXED RETURN 4 1.50 .577 .289 .58 2.42

AX BENEFITS 1 2.00 . . . .

SAFE AND SECURE 1 1.00 . . . .

Total 50 1.22 .418 .059 1.10 1.34

TEST OF HOMOGENITY OF VARIANCES

Levene Statistic df1 df2 Sig.

FIXED DEPOSITE AND Based on Mean 4.721 2 45 .014
RECURRING DEPOSITE Based on Median 3.050 2 45 .057
Based on Median and with 3.050 2 35.932 .060
adjusted df
Based on trimmed mean 4.721 2 45 .014

ANOVA

Sum of Squares df Mean Square F Sig.

Between Groups 2.021 4 .505 3.466 .015
Within Groups 6.559 45 .146
Total 8.580 49

INTERPRETATION:

Since p value is 0.015 less than 0.05 null hypotheses is rejected, alternative hypothesis is
accepted. Hence, there is significant difference between investor’s opinion/ experience of
the respondents on investing in fixed deposit and recurring deposit.

33
 CHAPTER – 5
5.1 FINDINGS
• Majority (72%) of the respondents are age between 26-40 years
• Majority (64%) of the respondents are female.
• Majority (70%) of the respondents are employers.
• Majority (36%) of the respondents are having saving mind set.
• Majority (40%) of the respondents are select FD on the basis of fixed return.
• Majority (28%) of the respondents are select RD on the basis on time.
• Majority (60%) of the respondents are strongly agree RD will be
useful for future purpose.

• Majority (40%) of the respondents are strongly agree FD will be

useful for future purpose.
• Majority (70%) of the respondents opinion is RD is best.
• Majority (76%) of the respondents are suggesting RD to invest our
friends and relatives.
• Majority (26%) of the respondents prefer Indian bank for FD.
• Majority (33%) of the respondents prefer Axis bank for RD.
• Majority (50%) of the respondents differentiate RD better than FD
• Majority (48%) of the respondents strongly agree RD is useful
form of investment.

5.1 SUGGESTIONS:

• The overall experience index from the study reveals that all banks are
provide fixed deposit and recurring deposit but every investors having
different opinion on FD and RD so I suggest all banks are given all facility
to the investors
• Investors suggest to change flexibility to access our funds
• Many customers affected by low rate of interest because of high
demand of credit.
34
5.3 CONCLUSION :

Primarily banks offer two kinds of deposit accounts. These are demand deposit like
current/saving account and term deposits like fixed or recurring deposit. When you
open a deposit account in a bank, you become an account holder or a depositor or
investors.

Recurring deposit are an investment tool which allows investors to make regular
monthly payments and save money for the long term. Fixed deposit has been a tried
and tested savings method for a long time. The conclusion of a comparative study is
Recurring deposit better than fixed deposit basis on interest rate, time, safe and
secure and flexibility.

35
QUESTIONNAIRE:
A COMPARITIVE STUDY ON INVESTORS INVESTING IN RECURRING DEPOSIT
AND FIXED DEPOSIT

1. NAME :
2. AGE
• 18-25
• 26-40
• 41-60
• 60 and above
3. GENDER :
• MALE
• FEMALE
• TRANSGENDER
4. OCCUPATION :
5. GIVE YOUR OPION ON WHAT BASES YOU WILL INVEST ON RECURRING
DEPOSITE AND FIXED DEPOSITE
• SAVINGS MINDSET
• INETREST PROVIDED BY BANK
• LONG TERM BENEFIT
• FACILITY OF PREMATURED WITHDRAWL
• OTHERS (SPECIFY)

6. ON WHAT BASES YOU WILL SELECT FIXED DEPOSITE

NOT AT NOT NEUTR PREFERR HIGHLY

ALL PREFER AL ED PREFERR
PREFERR RD ED
ED
RATE OF
INTEREST

36
 TIME
FIXED
RETURNS
TAX
BENEFITS
SAFE
INVESTME
NT

7. ON WHAT BASES YOU WILL SELECT RECURRING DEPOSITE

NOT AT NOT NEUTR PREFERR HIGHLY

ALL PREFER AL ED PREFERR
PREFERR RD ED
ED
RATE OF
INTEREST
TIME
SIMPLE
DOCUMENTAT
ION
SMALL
AMOUNT OF
INVESTMENT
SAFE AND
SECURE

8. INVESTING IN RECURRING DEPOSIT WILL BE USEFUL FOR FUTURE

PURPOSE
o STRONGLY AGREE
o AGREE
o NEITHER AGREE NOR DISAGREE
o DISAGREE
o STRONGLY DISAGREE

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9. INVESTING IN FIXED DEPOSIT WILL BE USEFUL FOR FUURE PURPOSE
o STRONGLY AGREE
o AGREE
o NEITHER AGREE NOR DISAGREE
o DISAGREE
10. RECURRING DEPOSIT OR FIXED DEPOSIT WHICH ONE IS BEST FOR
YOUR OPINION? AND WHY?
• RECURRING DEPOSIT
• FIXED DEPOSIT
• WHY?
11. WOULD YOU SUGGEST YOUR FRIEND OR RELATIVES TO INVEST IN
WHICH DEPOSIT?
• RECURRING DEPOSIT
• FIXED DEPOSIT
12. WHICH BANK YOU WILL PREFER FOR FIXED DEPOSITE
• INDIAN BANK
• CANARA BANK
• INDIAN OVERSEAS BANK
• CENTRAL BANK OF INDIA
• STATE BANK OF INDIA
• UNION BANK
• ICICI BANK
13. WHICH BANK YOU WILL PREFER FOR RECURRING DEPOSITE
• INDIAN BANK
• CANARA BANK
• INDIAN OVERSEAS BANK
• CENTRAL BANK OF INDIA
• STATE BANK OF INDIA
• UNION BANK
• ICICI BANK
14. IN WHAT ASPECT YOU WILL DIFFRENTIATE RECURRING DEPOSIT AND
FIXED DEPOSIT
• INTREST RATE

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 • FLEXIBLITY IN RD THAN FD
• RD BETTER THAN FD
• FD BETTER THAN RD
15. IS RECURRING DEPOSIT IS A USEFUL FORM OF INVESTMENT OR FIXED
DEPOSIT IS A USEFUL FORM OF INVESMENT?

(STRONGLY (RD) (NEUTRAL) (FD) (STRONGLY

RD) FD)

1 2 3 4 5

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