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 banks representative at
intervals and theamount is credited to the depositors 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

30 DAYS

LAKH RUPEES
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

DEPOSITS:

BETWEEN

MUTUAL

FUND

AND

BANK

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
Bank
SBI
ICICI
HDFC
OTHER

HDFC
Number of Respondents
20%
15%
0%
65%

OTHER

BANK
20%
SBI

ICICI

HDFC

OTHER

15%
65%

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

Occupation

Number of respondents

Self-Employed

45%

Employee

40%

Employer

0%

Corporate Business

0%

Others

15%

Others

OCCUPATION
number of respondents

45%

40%

15%

0%
self-employed

employee

employer

0%
corporate business

others

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

Type of account holder

Individual
Partnership
Joint A/C
Other

Other

Number of respondents
70%
0%
25%
5%

TYPE OF ACCOUNT HOLDER

80%
70%

70%

60%
50%
number of respondents

40%
30%
25%

20%
10%
0%

0%
individual

partnership

joint a/c

5%
other

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

Type of account

Number of respondents

Saving

85%

Recurring

0%

Current

0%

Fixed

15%

Fixed

type of account

fixe d; 15%
saving

recurring

current
saving; 85%

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%

90%
80%
70%
60%
50%

number of respondents

40%
30%
20%
10%
0%
yes

no

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

Minimum account limit

Strongly Agree
Agree
Somewhat Agree
Disagree

Disagree

Number of respondents
5%
80%
10%
5%

number of respondents
5% 5%
10%
strongly agree
agree
somewhat agree
disagree

80%

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

Services
Very Satisfied
Satisfied
Somewhat Satisfied
Dissatisfied

Dissatisfied

Number of respondents
15%
70%
15%
0%

15%

15%

70%

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

Relationship
Poor
Very Poor
Good
Excellent

Excellent

Number of respondents
5%
0%
90%
5%

90%
80%
70%
60%
90%

50%
40%
30%
20%
10%
0%

5%
poor

5%

0%
very poor

good

excellent

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%

number of respondents
60%
50%
40%

50%
40%

number of respondents

30%
20%
10%
0%

once

5%
5%
1-5 times more than 10 times

never

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

Business handled

Number of respondents

Always

25%

Sometimes

50%

Rarely

15%

Never

10%

Never

50%
45%
40%
35%
30%

50%

25%
20%
15%

25%

10%

15%

5%
0%

always

sometimes

rarely

10%

never

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%

number of respondents
40%
35%

35%

30%

30%

25%
20%
15%
10%

20%
15%

number of respondents

5%
0%

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

Bank rated
Excellent
Good
Neutral
Poor

Poor

Number of respondents
15%
75%
10%
0%

number of respondents
excellent

good

10%

neutral

poor

15%

75%

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%

number of respondents

20%
yes
no

80%

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

80%

Credit cards

Loans

Investing

Others

Associations

Number of respondents

Banking

75%

Credit Cards

5%

Loans

10%

Investing

5%

Others

5%

75%

70%
60%
50%
40%
30%
20%

10%
5%

10%
0%

banking

5%

credit cards

loans

investing

5%

others

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%

number of respondents

45%
55%

yes
no

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
C) HDFC

B) ICICI
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/go
vernment-will-propose-fixed-deposit-scheme-duringrakshabandhan-to-deepen-financialinclusion/articleshow/48012011.cms
https://www.bankbazaar.com/fixed-deposit.html
http://www.allbankingsolutions.com/top-topics/dep1.shtml