CHAPTER: 1

INTRODUCTION

1.1 INTRODUCTION:

DEFINITION OF BANK DEPOSIT:

Money placed into a banking institution for safekeeping. Bank deposits are made to deposit

accounts at a banking institution, such as savings accounts, checking accounts and money

market accounts. The account holder has the right to withdraw any deposited funds, as set

forth in the terms and conditions of the account. The "deposit" itself is a liability owed by the

bank to the depositor (the person or entity that made the deposit), and refers to this liability

rather than to the actual funds that are deposited.

What is Fixed Deposit?

Fixed deposit (FD) is a financial instrument where a sum of money given to a bank, financial

institution or company whereby the receiving entity pays interest at a specified percentage for

the time duration of the deposit. The rate of interest paid for fixed deposit varies according to

amount, period and from bank to bank. At the end of the time period of the deposit the

amount that is originally given is returned to the investor.

CHAPTER: 2

CONCEPTUAL DATA

2.1 TYPES OF BANK DEPOSIT ACCOUNTS:

Bank deposits serve different purposes for different people. Some people cannot save

regularly;they deposit money in the bank only when they have extra income. The purpose of

deposit thenis to keep money safe for future needs. Some may want to deposit money in a

bank for as longas possible to earn interest or to accumulate savings with interest so as to buy

a flat, or to meethospital expenses in old age, etc. Some, mostly businessmen, deposit all their

income from salesin a bank account and pay all business expenses out of the deposits.

Keeping in view thesedifferences, banks offer the facility of opening different types of

deposit accounts by people tosuit their purpose and convenience.

On the basis of purpose they serve, bank deposit accounts may be classified as follows:

a. Savings Bank Account

b. Current Deposit Account

c. Fixed Deposit Account

d. Recurring Deposit Account.

Let us briefly note the nature of the above accounts.

a. Savings Bank Account:

If a person has limited income and wants to save money for futureneeds, the Saving Bank

Account is most suited for his purpose. This type of account can beopened with a minimum

initial deposit that varies from bank to bank. Money can be depositedany time in this account.

Withdrawals can be made either by signing a withdrawal form or byissuing a cheque or by

using ATM card. Normally banks put some restriction on the number ofwithdrawal from this

account. Interest is allowed on the balance of deposit in the account. Therate of interest on

savings bank account varies from bank to bank and also changes from time totime. A

minimum balance has to be maintained in the account as prescribed by the bank.

b. Current Deposit Account:

Big businessmen, companies and institutions such as schools,colleges, and hospitals have to

make payment through their bank accounts. Since there arerestriction on number of

withdrawals from savings bank account, that type of account is notsuitable for them. They

need to have an account from which withdrawal can be made any numberof times. Banks

open current account for them. Like savings bank account, this account alsorequires certain

minimum amount of deposit while opening the account. On this deposit bankdoes not pay

any interest on the balances. Rather the accountholder pays certain amount eachyear as

operational charge.For the convenience of the accountholders banks also allow withdrawal of

amounts in excess ofthe balance of deposit. This facility is known as overdraft facility. It is

allowed to some specificcustomers and upto a certain limit subject to previous agreement

with the bank concerned.

c. Fixed Deposit Account (also known as Term Deposit Account):

Many a time people wantto save money for long period. If money is deposited in savings

bank account, banks allow alower rate of interest. Therefore, money is deposited in a fixed

deposit account to earn a interestat a higher rate.This type of deposit account allows deposit

to be made of an amount for a specified period. This period of deposit may range from 15

days to three years or more during which no withdrawal isallowed. However, on request, the

depositor cans encash the amount before its maturity. In thatcase banks give lower interest

than what was agreed upon. The interest on fixed deposit accountcan be withdrawn at certain

intervals of time. At the end of the period, the deposit may bewithdrawn or renewed for a

further period. Banks also grant loan on the security of fixed depositreceipt.

d. Recurring Deposit Account:

This type of account is suitable for those who can save regularlyand expect to earn a fair

return on the deposits over a period of time. While opening the accounta person has to agree

to deposit a fixed amount once in a month for a certain period. The totaldeposit along with

the interest therein is payable on maturity. However, the depositor can also beallowed to

close the account before its maturity and get back the money along with the interest tillthat

period. The account can be opened by a person individually or jointly with another, or bythe

guardian in the name of a minor. The rate of interest allowed on the deposits is higher

thanthat on a savings bank deposit but lower than the rate allowed on a fixed deposit for the

sameperiod.Recurring Deposit Accounts may be of different types depending on the purpose

underlying thedeposit. Some of these are as follows:

a. Home Safe Account (also known as Money Box Scheme):

Small savers find it convenientto deposit money under this scheme. For regular savings, the

bank provides a safe or box(Gullak) to the depositor. The safe or box cannot be opened by the

depositor, who can putmoney in it regularly, which is collected by the bank’s representative

at intervals and theamount is credited to the depositor’s account. The deposits carry a

nominal rate of interest.

b. Cumulative-cum-Sickness Deposit Account:

Regular deposits made in this type ofaccount serve the purpose of having money to meet

large expenses in case there is suddenillness or other unforeseen expenses. A certain fixed

sum is deposited at regular intervals inthis account. The accumulated deposits over time

along with interest can be used forpayment of medical expenses, hospital charges, etc.

c. Home Construction deposit Scheme/Saving Account:

This is also a type of recurringdeposit account in which money can be deposited regularly

either for the purchase orconstruction of a flat or house in future. The rate of interest offered

on the deposit in thiscase is relatively higher than in other recurring deposit accounts.

2.2 FEATURES OF FIXED DEPOSITS:

The main purpose of fixed deposit account is to enable the individuals to earn a higher rate

of interest on their surplus funds (extra money).

The amount can be deposited only once. For further such deposits, separate accounts need

to be opened.

The depositor is given a fixed deposit receipt, which depositor has to produce at the time of

maturity. The deposit can be renewed for a further period.

As per the Traditional scheme, the interest on the FD account is credited to the Savings

account specified by the depositor on a monthly basis or on a quarterly basis. For the

Reinvestment scheme, the interest is compounded to the principal amount on a quarterly

basis.

Tax is deducted at source, from the interest on Fixed Deposits, as applicable, as per the

Income Tax Act, 1961.

Duration of Fixed Deposit

Fixed deposit can be opened for a minimum period of 7 days to maximum of 10 years.

Eligibility for Fixed Deposit

All Resident individuals (Including Minors) and HUF are eligible to open a fixed deposit

account

Compound Interest and Impact of Compounding frequency

Compound interest arises when interest is added to the principal so that from that moment on,

the interest that has been added also it earns interest. This addition of interest to the principal

is called compounding.

The following formula gives you the total amount one will get if compounding is done:-

1. Annual Compounding: In this case there is no compounding effect because the term is

only one year, the same as the compounding frequency. Thus, all we have is simple interest

(i. e. , the effective rate is equal to the nominal rate)

FV=100(1+0.08)1=108.0000

2. Monthly Compounding: In this case there are 12 compounding periods. Interest earned

each month is added to the balance and is itself available to earn interest in each succeeding

month. Thus, the future value is greater than the amount calculated using annual

compounding.

3. Weekly Compounding: As should be expected, increasing the frequency of the

compounding period increases the impact of the interest rate. That it does so should be

intuitive: more interest is available sooner to earn more interest. Whereas before we had to

wait until the end of the month before the interest was 'added back to the pot', now it is

being credited each week.

4. Daily Compounding: Now instead of earning interest weekly, we earn it daily. As

expected the, the impact of the interest rate is magnified. However, this time the impact is

not as dramatic as might be expected.

5. Continuous Compounding: Interest that is, hypothetically, computed and added to the

balance of an account every instant. This is not actually possible, but continuous

compounding is well-defined nevertheless as the upper bound of "regular" compound

interest. The result is the maximum effect that compounding frequency can exert on a

given interest rate and term.

Below table (Updated on: 22-05-2015) contains best rates for Rs. 1 lakh deposit.

BANK PERIOD INTREST % PA FOR

1 LAKH RUPEES

30 DAYS 7.50%

30 DAYS 7.50%

30 DAYS 7.50%

60 DAYS 8.00%

90 DAYS 8.00%

120 DAYS 8.50%

6 MONTHS 8.50%

9 MONTHSS 8.75%

1 YEAR 9.50%

1 YEAR 6 MONTHS 9.25%

2 YEARS 9.75%

3 YEARS 9.80%

4 YEARS 9.80%

5 YEARS 9.80%

2.3 FIXED DEPOSITS IN INDIA: BENEFITS, DRAWBACKS:

Any investment portfolio should comprise the right mix of safe, moderate and risky

investments. While mutual funds and stocks are the favorite contenders for moderate and

risky investments, fixed deposits, government bonds etc. are considered safe investments.

Fixed deposits have been particularly popular among a large section of investors in India as a

safe investment option for a long period.

With fixed deposits or FDs as they are popularly known, a person can invest an amount for a

fixed duration. The banks provide interest rates depending on this loan amount and the tenure

of deposit. Here are the benefits, drawbacks of fixed deposits and precautions one should take

while making such investments.

BENEFITS

1.Safety:

The fixed deposits of reputed banks and financial institutions regulated by RBI (Reserve

Bank of India) the banking regulator in India are very secure and considered as one of the

safest investment methods.

2. Regular income:

Fixed deposits earn fixed interest rates for their entire tenure, which is usually compounded

quarterly. So, those who want an income on a regular basis can invest into fixed deposits and

use the interest rate as their income. This makes a fixed deposit very popular way of investing

money for retirees.

3. Save tax:

With the directives of the income tax department stating that investment in fixed deposits up

to a maximum of Rs.100,000 for 5 years are eligible for tax deductions under section 80 C of

income tax act, fixed deposits have again become popular. Fixed deposits save tax and give

high returns on invested money.

DRAWBACKS

1. Lower rate of return

While the money invested in stock markets may give you a return of 20% the fixed deposits

will yield only about 10%. So, the money grows slowly in the case of fixed deposits.

2. Taxes:

The interest earned on fixed deposits is fully taxable and is added to the annual income of the

individual. Gains from stocks are considered capital gains while dividends are tax free.

3. Rising inflation can wipe out the interest benefits:

The actual benefits or income from fixed deposit can be annulled by a rising inflation.

Suppose the inflation which is currently at 3 % rises to about 6%, your fixed deposit at 10%

annual return will effectively yield only(10%-6%) = 4% of return. This return would have

been (10% -3%) = 7% if the rate of inflation had not changed. This can drastically eat into

your fixed deposit income.

2.4 COMPARISON BETWEEN MUTUAL FUND AND BANK

DEPOSITS:Comparison between mutual funds and fixed deposits is a long debate, especially when it

comes toa comparison between fixed deposits and debt mutual funds. Even a few years ago,

any conservative andrisk averse investor would think investing in bank fixed deposits is

better than mutual funds (debt orotherwise). Nevertheless, the market scenario has changed a

lot in the recent years, and many a mutualfunds family has come up with interest debt mutual

fund schemes with guaranteed returns alongside capitalappreciations.

This makes the comparison between debt mutual funds versus fixed deposits more complex,

andeven the most risk averse investor (count my father!) is led to think twice. That being

said, whether youshould invest in bank fixed deposits or debt mutual funds is no more a

simple question as it used to be fivesixyears back, and needs a detailed examination and

explanation. And, we at Mutual Funds Manager arehere again to help you with a neutral

comparison between fixed deposits and mutual funds.

While only you can finally decide whether mutual funds or fixed deposit where to

investdepending on your risk taking abilities, return expectations, and investment horizons

let us try to analyzesome key factors one by one and chalk out a comparison between bank

FD and mutual funds.

BANK DEPOSITS Vs DEBT FUNDS

Bank deposits cater to a segment of the investor class that looks for safety and accepts a

relativelylower return. Equity Funds cannot clearly be compared with the bank deposits, as

investors can expecthigher returns from equity funds on only at the risk of losing part of the

capital also. Given the risks, Indianinvestors are currently investing heavily in debt funds.

A bank deposit is guaranteed by the bank for repayment of principal and interest. Any

risksassociated with investment of the investors' funds have to be borne by the bank. The

depositor has acontractual commitment from the bank to pay. A mutual fund, on the other

hand, invests at the risk of theinvestor. Hence, there is no contractual guarantee for

repayment of principal or interest to the investor.The bank depositor does not directly hold

the bank portfolio of investments, as he does in case of afund. The investor needs to assess

the risk in terms of the credit rating of the bank, which provides anindication of the financial

soundness of the bank.

In case of investments, in debt funds, however, only a few debt funds in India are rated by a

CreditRating Agency. Where a fund rating is available, it is a useful guide for the investor to

know the risk level ofthe fund. In all other cases of unrated funds, the investor has to assess

the risk on the portfolio held by thefund. The investor needs to know whether the fund invests

in high quality assets or lower rated debt. Unlikein case of bank deposits, therefore, the

investor needs to know his own investment objective and riskappetite before investing in debt

fund. The expected returns will be commensurate with the level of riskassumed by the fund.

It can be seen that the bank deposits are not totally free from risk, while generally giving

lowerreturns. A conservative debt fund can give better returns than a bank deposit, even if

there is no contractualguarantee as in case of a bank deposit. Investor seeking higher returns

from the capital market securities, adiversified debt portfolio while still investing small

amounts, and a portfolio that matches his objective andrisk appetite is well advised to

consider part of his investment in debt funds.

Return on investments vary for mutual funds, but not bank deposits

Needless to repeat, bank deposits offer you a fixed percentage of return, as would be agreed

uponby the investor and the bank at the time of the investment. For example, if you put 50

thousand rupees in FDfor 5 years and the agreed interest rate is 8% per annum, you will

continue to enjoy the same interest ratethroughout the tenure. On the other hand, debt mutual

funds have no assured rate, and the return oninvestment for debt mutual funds depend

completely on the market and the performance of the fund.Fluctuations in the money market

impact the NAV of the fund, thereby altering returns. Thus, a greatadvantage of bank fixed

deposits is that, you will continue to earn the same interest rates even if the marketgoes

down.Nevertheless, this very advantage of fixed deposits over mutual funds can actually turn

out to betheir great disadvantage. If the market goes up mutual funds will give more returns

accordingly, but yourFD will continue to yield in the same old rate. So, the actual question

becomes, whether there is any chanceof the Indian market going up in near future, especially

following the recent recession? Yes, there is. Atleast, we think so. Market researches and

predictions indicate that the Indian money market will go up in2013, may get stagnant for a

while in 2014, then taking another upward curve.

Comparison between mutual funds & fixed deposits: Inflation adjustment

Inflation adjustment is a very important point while comparing mutual funds and fixed

deposits.FDs don't come with inflation adjustment guarantees, and if the interest rate is lower

than the inflation rate,you actually end up losing the value of your money. In the FY 2011-12,

the inflation rate in India was 7%,while the interest rate for around 1 year tenure was

something around 7% as well [6.5% for ICICI andHDFC banks, 6.75% for Citibank and

HSBC, 7.10% for Axis and Yes Bank and so on. Higher rates arethere, but for lump-sum

investments like 1 crore. Thus, if you have invested in bank FDs for the last FY, youeither

failed to beat inflation or ended up with minimal inflation adjusted positive returns. On the

otherhand, at least half a dozen mutual funds yielded returns greater than 8% (some as high

as 12-14%), therebygiving you handsome inflation adjusted returns. Usually, mutual funds

outrun inflation and always givepositive, real returns.

Mutual funds and fixed deposits: Capital appreciation

When it come to capital appreciation, mutual funds are better than fixed deposits, because of

theequity investment. In longer time periods, market changes result in increasing interest

rates. And, yourmutual funds manager is there with all the expertise and professionalism to

ensure a better capitalappreciation.

Mutual funds or fixed deposits, which one is more liquid?

In terms of liquidity, these days both fixed deposits and mutual funds are almost same.

Fixeddeposits are actually meant for long lock in periods, but most banks allow premature

withdrawals with anominal penalty (usually 1%). The interest rate calculation for bank fixed

deposit withdrawals is done onhow long the money was parked. Mutual funds are equally

liquid; you can take out any number of unitswithin a couple of days. The return for premature

withdrawal of mutual funds units is done on the prevalentNAV of the fund. Usually, there is

an exit load of 1% for premature withdrawals before 1 year.

Risk factor of mutual funds and fixed deposits

The only reason why most investors prefer fixed deposits to debt mutual funds is the

assuredreturn of the capital. On the other hands, returns from investments in mutual funds are

subject to thevolatility of the market, and may result in low or even negative returns. An

investor should be wise enoughto judge the quality of the investment instrument and thereby

minimizing risk factors. Do take a look at theBeta Ratio of your mutual fund.

Cost of investments in mutual funds and bank fixed deposits

Investing in bank fixed deposits costs nothing. On the other hand, there is a minimum charge

formutual funds investments management and fund distribution, borne by the investor

irrespective of returns.In other words, no matter whether your return on mutual funds

investments is positive or negative, you haveto bear an expense as the fees of fund

management. Sometimes, entry loads are there as well, but quiterarely.

Tax benefits of debt mutual funds and bank fixed deposits

Fixed deposits interests are considered incomes and come under income taxes (if you are

taxable,of course). Moreover, there is a TDS (Tax Deducted at Source) at the rate of 10.3%

p.a. if your totalcumulative interest on all FD is more than Rs. 10,000 in any financial year.

Similarly, short term capitalgains of debt funds are considered income and are accordingly

taxable. For long term capital gains, tax is10% without indexation or 20% with indexation.

However, dividends received on debt mutual funds are taxfree.

2.5 NEWS ABOUT FIXED DEPOSIT:

GOVERNMENT WILL PROPOSE FIXED DEPOSIT SCHEME DURING

RAKSHABANDHAN TO DEEPEN FINANCIAL INCLUSION:

NEW DELHI:

The government will use the upcoming Rakshabandhan festival to propose a fixed deposit

scheme which will deepen financial inclusion, and will top it up with freebies to make it

attractive for the depositors.

The finance ministry has suggested a fixed deposit (FD) scheme to banks in which brothers

can open an FD of at least Rs 5,000 for their sisters. The government will add free life and

accident insurance schemes to these deposits to make them more appealing. 

A senior banker aware of the developments told ET that the scheme, which may be christened

'UphaarYojana' or 'RakshaBandhanYojana', will be available for a minimum fixed deposit of

Rs 5,000. The government's idea is to keep the Jan Dhan accounts active through these

schemes and also encourage financial savings in the so far unbanked segments.

"The new scheme will also help banks to get more low-cost deposits and further help promote

the cause of financial inclusion," said another banker in the know of things.

JeevanJyotiBimaYojana offers a renewable one-year life cover of Rs 2 lakh to all savings

bank account holders in the 18-50 age group, covering death due to any reason for an annual

premium of Rs 330. Already 2.66 crore people have enrolled for the scheme. 

SurakshaBimaYojana offers a renewable one-year, accidental, death-cum-disability cover of

Rs 2 lakh for partial, permanent disability to all savings bank account holders in the 18-70

age group for an annual premium of Rs 12 

The government has launched three social security programmes -- the

PradhanMantriSurakshaBimaYojana (PMSBY), the PradhanMantriJeevanJyotiBimaYojana

(PMJJBY) and the Atal Pension Yojana (APY) --to bring the excluded under the fold of

formal financial services. The drive is billed as 'Jandhan to Jansuraksha'. 

So far, about 10 crore people have been covered under these three schemes. State bank of

India, country's largest bank, has offered these three schemes to over 2 crore people, followed

by Punjab National BankBSE 0.30 % which has covered 79 lakh people. "If even half of

them buy aRs 5,000 fixed deposit, one can imagine how much money will flow into the

formal banking sector," said the above quoted bank official. 

CHAPTER 3

DATA ANALYSIS

1. You are a customer of which bank?

SBI ICICI HDFC OTHER

Bank Number of Respondents

SBI 20%

ICICI 15%

HDFC 0%

OTHER 65%

20%

15%65%

BANKSBI ICICI HDFC OTHER

CONCLUSION:-

From the above table and chart, this can be seen that out of the total respondents every

respondent having account in the OTHER bank but SBI has more customers than ICICI and

HDFC. The ICICI is also has more customers than HDFC.

2. What is your occupation?

Self-Employed Employee Employer Corporate Business Others

Occupation Number of respondents

Self-Employed 45%

Employee 40%

Employer 0%

Corporate Business 0%

Others 15%

self-employed employee employer corporate business

others

45% 40%

0% 0%

15%

OCCUPATION

number of respondents

CONCLUSION:-

So it is concluded that the self-employed occupation is more than others and it is 45%. The

next occupation is employee is of 40% is also more than other three and others occupation is

of 15% are also more than other two.

3. Which type of account holder you are?

Individual Partnership Joint A/C Other

Type of account holder Number of respondents

Individual 70%

Partnership 0%

Joint A/C 25%

Other 5%

individual partnership joint a/c other0%

10%

20%

30%

40%

50%

60%

70%

80%

70%

0%

25%

5%

TYPE OF ACCOUNT HOLDER

number of respondents

CONCLUSION:-

As per the survey is concerned the individual account holder is of 70% and it is more than the

others. The joint account holder is of 25% and the other type of account holder is of 5%.

4. Which type of account do you have with bank?

Saving Recurring Current Fixed

Type of account Number of respondents

Saving 85%

Recurring 0%

Current 0%

Fixed 15%

saving; 85%

fixed;

15%

type of account

saving recurring current fixed

CONCLUSION:-

From the total number of respondents is of 20 people the number of respondents in the saving

account is of 85% and it is more than the other type of account. The fixed account is of 15%

and is more than the other two account type.

5. Do you feel that the procedure to open an account with the bank was difficult?

Yes, to a certain extent No, it was easy

Open an account Number of respondents

Yes 15%

No 85%

yes no0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

number of respondents

OPEN AN ACCOUNT

85%

15%

CONCLUSION:-

The procedure to open an account with the bank is easy, it was not difficult the number of

respondents feel. The 85% of number of respondent answered that the procedure is easy.

6. Do you agree that minimum account limit is not high and easy to maintain?

Strongly Agree Agree Somewhat Agree Disagree

Minimum account limit Number of respondents

Strongly Agree 5%

Agree 80%

Somewhat Agree 10%

Disagree 5%

5%

80%

10%5%

number of respondents

strongly agreeagreesomewhat agreedisagree

CONCLUSION:-

The total number of respondents answered that the minimum account balance is easy to

maintain. From the total number of respondents is of 20 people and 80% number of

respondents said that it is not difficult to maintain the minimum account balance.

7. How satisfied are you with the services provided by the bank?

Very satisfied Satisfied Somewhat satisfied Dissatisfied

Services Number of respondents

Very Satisfied 15%

Satisfied 70%

Somewhat Satisfied 15%

Dissatisfied 0%

15%

70%

15%

very satisfied satisfied somewhat satisfied dissatisfied

CONCLUSION:-

From the above table and chart, this can be seen that out of total respondents 70%

respondents have satisfied with services provided by bank. The 15% respondents have very

satisfied and 15% of respondents have somewhat satisfied.

8. Describe the overall relationship between you and bank?

Poor Very poor Good Excellent

Relationship Number of respondents

Poor 5%

Very Poor 0%

Good 90%

Excellent 5%

poor very poor good excellent0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

5% 0%

90%

5%

number of respondents

CONCLUSION:-

The number of respondents answered that their relationship with bank is good. The 5%

respondents answered that their relationship is excellent and 5% respondents answered that

their relationship is poor.

9. How many times have you faced a problem related to your banking account in the last 1

year?

Once   1-5 times More than 10 times   Never

Problems Number of respondents

Once 40%

1-5 Times 5%

More Than 10 Times 5%

Never 50%

once 1-5 times more than 10 times

never0%

10%

20%

30%

40%

50%

60%

40%

5% 5%

50%

number of respondents

number of respondents

CONCLUSION:-

The 50% respondents never faced a problem related to a banking account in the last one year.

The 40% respondents faced a problem at once in the last one year.

The remaining 5% respondents faced a problem one to five times and 5% respondents faced a

problem more than 10 times in the last one year.

10. Is your business handled by banking executives in a timely and efficient manner?

Always Sometimes Rarely Never

Business handled Number of respondents

Always 25%

Sometimes 50%

Rarely 15%

Never 10%

always sometimes rarely never0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

25%

50%

15%10%

number of respondents

CONCLUSION:-

The 50% respondents answered that their business handled by banking executives in a timely

and efficient manner. The remaining respondents answered that 25%, 15% and 10%

respondents business handled by banking executives is always, rarely and never in a timely

manner.

11. How long have you had these accounts in the bank?

  Less than a year  1-3 years 3-8 years   More than 8 years

Long accounts Number of respondents

Less Than A Year 15%

1-3 Years 20%

3-8 Years 35%

More Than 8 Years 30%

less than a year

1-3 years 3-8 years more than 8 years

0%

5%

10%

15%

20%

25%

30%

35%

40%

15%

20%

35%

30%

number of respondents

number of respondents

CONCLUSION:-

The 35% of the total number of respondents has account with the bank for 3-8 years. The

30% number of respondents has more than 8 years with the bank. The 20% respondents have

1-3 years account with the bank. The remaining 15% respondents have account with the bank

for less than a year.

12. How would you rate your bank on a scale of 4?

Excellent Good Neutral Poor

Bank rated Number of respondents

Excellent 15%

Good 75%

Neutral 10%

Poor 0%

15%

75%

10%

number of respondents

excellent good neutral poor

CONCLUSION:-

From the survey concluded that 75% total number of respondents rated that bank is good. The

15% respondents rated excellent and remaining 10% rated the bank is neutral.

13. Would you recommend to your acquaintances, to open an account with your bank?

Yes No

Recommend to acquaintances Number of respondents

Yes 80%

No 20%

80%

20%

number of respondents

yesno

CONCLUSION:-

From the above chart and table, the 80% number of respondents answered yes they will

recommend to their acquaintances to open an account with their bank. The remaining 20%

respondents answered no.

14. Which of the following associations do you have with the bank?

Banking Credit cards Loans Investing Others

Associations Number of respondents

Banking 75%

Credit Cards 5%

Loans 10%

Investing 5%

Others 5%

banking credit cards loans investing others0%

10%

20%

30%

40%

50%

60%

70%

80%75%

5%10%

5% 5%

number of respondents

CONCLUSION:-

The 75% numbers of respondents have their banking associations with their bank. The 10%

respondents have their loan associations. The remaining 5% each is of investing, credit cards

and others associations with their bank.

15. Would you like suggest any changes or improvement in any service or any feature of the

bank

Changes or improvement Number of respondents

Yes 45%

No 55%

45%

55%

number of respondents

yesno

CONCLUSION:-

From the above table and chart we can see that the 45% of the respondents answered yes and

the remaining 55% answered no for suggestion related to the changes or improvement in any

service or any feature of the bank.

CHAPTER: 4

CONCLUSION

4.1 CONCLUSION:

So, should you invest in mutual funds or fixed deposits? This decision is yours. If you are

youngand come from the average middle and upper middle class (at least), you can

supposedly take more risk andshould go for investing in mutual funds. On the other hand,

elderly people and low-income persons cannottake much risk; securing the capital matters

most to them. Such people should opt for bank fixed depositsinstead of debt funds. After all,

it is your money, and none knows yourself better than you. Only you,therefore, can make a

final decision.

CHAPTER: 5

ANNEXURE

NM COLLEGE OF COMMERCE & ECONOMICS

Name: ______________________________

Address: _____________________________

Email Id: _____________________________ Mobile Number:

_________________

1. You are a customer of which bank?

A) SBI B) ICICI

C) HDFC D) OTHER

2. What is your occupation?

A) Self-Employed B) Employee

C) Employer D) Corporate Business

3. Which type of account holder you are?

A) Individual B) Partnership

C) Joint A/C D) Other

4. Which type of account do you have with bank?

A) Saving B) Recurring

C) Current D) Fixed

5. Do you feel that the procedure to open an account with the bank was difficult?

A) Yes, to a certain extent B) No, it was easy

6. Do you agree that minimum account limit is not high and easy to maintain?

A) Strongly Agree B) Agree

C) Somewhat Agree D) Disagree

7. How satisfied are you with the services provided by the bank?

A) Very satisfied B) Satisfied

C) Somewhat satisfied D) Dissatisfied

8.Describe the overall relationship between you and bank?

A) Poor B) Very poor

C) Good D) Excellent

9. How many times have you faced a problem related to your banking account in the last 1

year?

A) Once B) 1-5 times

C) More than 10 times D) Never

10. Is your business handled by banking executives in a timely and efficient manner?

A) Always B) Sometimes

C) Rarely D) Never

11. How long have you had these accounts in the bank?

A) Less than a year B) 1-3 years

C) 3-8 years D) More than 8 years

12. How would you rate your bank on a scale of 4?

A) Excellent B) Good

C) Neutral D) Poor

13. Would you recommend to your acquaintances to open an account with your bank?

A) Yes B) No

14. Which of the following associations do you have with the bank?

A) Banking B) Credit cards

C) Loans D) Investing

E) Others

15.Would you like suggest any changes or improvement in any service or any feature of the

bank

5.2 BIBLIOGRAPHY:

http://economictimes.indiatimes.com/news/economy/finance/

government-will-propose-fixed-deposit-scheme-during-

rakshabandhan-to-deepen-financial-inclusion/articleshow/

48012011.cms

https://www.bankbazaar.com/fixed-deposit.html

http://www.allbankingsolutions.com/top-topics/dep1.shtml