Identifying Factors influencing preference towards Post Office ...

IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 

Vol. 2, No.6, December 2012 

Identifying Factors influencing preference 

towards Post Office Saving Schemes 

(A research paper with reference to Garhwal region in Uttarakhand) 

Ritika Aggarwal 

Research Scholar, Department Of Management 

Uttarakhand Technical University 

Dehradun, India 

ritikaaggarwal2007@gmail.com 

Abstract - India Post Office Savings Bank is widely 

known and traditional formal institution offering 

saving products. Its outreach has been ceaselessly 

increasing both in terms of number of accounts as 

well as number of branches, especially in small 

regions of the country. Globalization has brought 

outsized revolution in the financial sector of the 

country, which proves to be challenging for POSBs. 

Liberalization has substantially increased better and 

innovative investment possibilities to the investor. 

However, India POSB has positioned itself as a 

reliable agency of Government of India. It is due to its 

competitive advantage of geographical accessibility 

and product differentiation on the important 

attributes of safety, security and risk free factor. The 

present paper examines the preference of investors of 

Garhwal region towards different investment 

schemes of Post office and factors that motivates them 

to choose a particular investment scheme of post 

office. 

Keywords: India POSBs, saving products, 

motivating factors, de-motivating factors, investor’s 

preference 

I. INTRODUCTION 

India is one of rapidly growing economies of Asia. 

Emergence of several significant trends such as 

liberalization and globalization; demographic shift 

towards urbanization monetization of the economy 

especially the agricultural sector giving rise to a 

corresponding demand for financial services by all 

sections of the society; and government policy to 

increase funding for weaker section programs has 

necessitated changes in financial framework of the 

country. Due to the on-going reforms the people’s 

expectations and requirements from life are 

changing. Investments have become a basic 

necessity for everyone. Volatility in the market, 

increasing expenditures, uncertainties, rising 

inflation, etc. is letting large section of society to 

showing their interest and to investing their funds 

in different nature of investment products. Many of 

them provides better returns, high interest rates, tax 

savings, high quality IT related services and much 

more benefits. At one place where a large bundle of 

such investment products are offered in the market, 

Government of India is still running and sustaining 

the oldest Postal saving option to saving money. At 

present where private players are capturing the 

market, it is a matter of concern whether Post 

Office Savings Banks are still preferred by society 

or not, whether it is still seen as important saving 

option or not. Consequently, an attempt has been 

made to find out the investment preferences 

towards different post office saving schemes and to 

know the reasons behind the interest of investors of 

Garhwal region, in the state of Uttarakhand. 

Accessibility of researchers with the investors of 

Garhwal region has motivated them to select them 

as preferred sample of the study. 

The present paper is concerned with fulfilling the 

following objectives: 

• To study the preference of the investors for 

different post office saving options. 

• To find out the factors that influence investors to 

invest among post office saving products. 

• To find out those factors that demotivates 

investors towards POSB schemes. 

• To study the impact of occupation and education 

variables on the investor’s behaviour towards post 

office saving schemes. 

A. Post Office Savings Banks (POSBs) 

The Post Office Savings Bank (POSB) is the oldest 

and largest banking institution in the country. It 

operates more than 238 million Savings Accounts 

(India Post Annual Report 2011-2012) in more than 

154000 Post Offices. POSBs in India were 

established in 1882 by the British colonizers to 

mobilize savings. It is an agency function carried 

out by the Department of Posts on behalf of the 

Ministry of Finance, Government of India. The 

Ministry of Finance remunerates the Department of 

Post for the Savings Bank work at a rate fixed from 

time to time. Presently, seven post office savings 

schemes are operated across the country. These 

schemes are: Savings Account, Recurring Deposit 

(RD), Time Deposit (TD), Monthly Income 

Scheme (MIS), Public Provident Fund (PPF), 

National Savings Certificate (NSC) and Senior 

Citizens Savings Scheme (SCSS). The sale of 

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Kisan Vikas Patra Scheme has been discontinued 

by Government of India w.e.f. 1 st December, 2011 

and this does not affect those who already have this 

certificate. 

II. REVIEW OF LITERATURE 

The objective of this study is to explore factors that 

influence investors to invest among post office 

saving products. The present study examines the 

factors that appear to exercise the greatest influence 

on the investor decision making. It includes the 

factors investigated by previous studies like 

sources of investment advice, purpose of 

investment, education and occupation. Based on 

review of literature study identifies influence of 

these factors on post office investors decision 

making. In addition to factors extrapolated from 

academic sources, study also introduces additional 

factors generated through personal interviews that 

are supposed to influence the investor decision 

making. These factors are suggested by the 

professional and contextual sources. These factors 

that seem to be influencing individual investor are: 

criteria of agent selection, motivating features of 

post office saving schemes and demotivating 

factors. Since respondents’ orientation may be 

reflected in their answers, they are asked direct 

questions covering all the shortlisted factors. 

Factors considered by previous studies are as 

follows: 

1.) Sources of investment advice - NCAER Report 

(2011) found that while applying for an IPO, 

investors across all income/education categories list 

newspapers as the single source of information. Dr. 

C. Thilakam and Dr. Ganesan (2012) observed that 

respondents have gained knowledge about 

saving/investment avenues through business 

channels. Sanjay Kanti Das (2011) reveals that for 

investment in share market, friends & relatives are 

the primary source of information and for insurance 

market others like agents and development officers 

plays the key role. Advertisement, brokerage firms 

and other sources have almost a similar impact for 

investment in mutual funds. His study shows that 

the association between the source of awareness 

and preferred investment avenue is not significant. 

Study of Anna A. Merikas, Andreas G. Merikas, 

George S. Vozikis, Dev Prasad (2011) concludes 

that experienced investors rely mostly on wealth 

maximization criteria and they are self-reliant 

ignoring inputs of family members, politicians, and 

co-workers when purchasing stocks. NCAER 

Report (2011) found that a significant number of 

investors find the advice of brokers more useful. 

The survey reveals that while participating in 

mutual funds as well as in the secondary market, a 

significant majority depends on the advice given by 

intermediaries and friends. Nick Chater, Steffen 

Huck and Roman Inderst (2010) find that advice is 

ubiquitous in the retail investment market. Trust in 

advisors is high, but consumers are often unaware 

of potential conflicts of interest. Sharon Collard 

(2009) finds that many people may rely on 

professional financial advice to make pension 

purchase and investment decisions, research from 

the UK and Australia has highlighted concerns 

about the quality of advice provided to individuals. 

Pravin Narayan Mahamuni, Santosh Kalabhau 

Apte and Dr. Anand Ganpatrao Jumle (2011) 

studied that people get the information regarding 

investment opportunities present in the market 

from their professional consultant. After that the 

available information sources like as, TV ads, web 

sites, newspaper, friends, etc. 

2.) Purpose of Investment - Haruna Issahaku (2011) 

found reasons account for households saving and 

investment behaviour are to cope with unexpected 

emergencies, buy some assets, pay for predictable 

expenses, allow for future consumption, make 

provision for retirement, to accumulate enough 

funds for investment, employ the teaming 

unemployed youth, reap higher returns and luxury. 

The World Bank new flagship report (2012) finds 

that macroeconomic vulnerability and the resulting 

unstable income streams, the risk of 

unemployment, and health risks are strong 

precautionary motive for savings of Turkish 

households. Ms. Babita Yadav and Dr. Anshuja 

Tiwari (2012) revealed that majority of the 

respondents invest in life insurance for tax benefit, 

followed by the risk coverage & saving, premium 

charges, security with high return and insurance 

services. 

3.) Educational Qualification - SK Das (2011) finds 

that respondents with education below tenth 

standard invested mostly in insurance followed by 

banks and property. Respondents with education up 

to under Graduate level mostly invested in 

insurance products followed by share market, 

banks and mutual fund. Respondents with 

graduation or above education level invested 

mostly in insurance products followed by share 

market, banks and mutual funds. His study reveals 

that the association between the education and 

preferred investment avenue is not significant. In a 

NCAER report (2011), it was found that twenty six 

per cent of households with more than 15 years of 

education prefer to invest in secondary markets. 

Most participants in the derivatives market have an 

average education between 11 to 15 years. Results 

of study of Muhammad Naeem Akhtar, Kashif ur 

Rehman, Ahmed Imran Hunjra (2011) indicated 

that individual investors with higher educational 

qualifications have more intentions for short term 

investments as compared to the investors with other 

qualifications. The World Bank new flagship report 

(2012) discussed that the small group of highly 

educated has a saving rate of more than 20 percent, 

while the large group of least educated saves about 

10 percent. The analysis also shows that the more 

551



educated have larger holdings of financial assets 

than the less educated ones. 

4.) Occupation - SK Das (2011) described that 

respondents having salaried income invested 

mostly in insurance products followed by banks, 

and stock market. Self-employed people also show 

the keen interest in insurance products as like as 

salaried people except next high degree of 

preference towards the investment in case of share 

market followed by banks, mutual fund and 

property. Retired people invested mostly in banks 

followed by share market, mutual funds and 

insurance products. His study reveals that the 

association between the occupation and preferred 

investment avenue is not significant. NCAER 

report (2011), found that a rupee of surplus income 

distributed across investment options does not 

seem to be affected by the occupation of the head 

of the household. However Business and whitecollar 

workers hold more risky assets than their 

blue-collar counterparts. The World Bank new 

flagship report (2012) found self-employed 

households tend to save more, while households 

where there is a green card holder save less, 

controlling for the income effect. Prof Madhu 

Iyengar, Dr. Vijaylaxmi Iyengar and Dr. Shailesh 

Tripathi (2012) finds that salaried people and 

businessmen are inclined to invest more in risky 

assets and students invest in stock markets to make 

money with the aim of earning more. Ms. Babita 

Yadav and Dr. Anshuja Tiwari (2012) concluded 

that there is a no significant association between 

occupation and customer insurance investment 

decision. 

III. OBJECTIVES OF THE STUDY 

The present paper is concerned with fulfilling the 

following objectives: 

• To study the preference of the investors for 

different post office saving options. 

• To find out the factors that influence investors to 

invest among post office saving products. 

• To find out those factors that demotivates 

investors towards POSB schemes. 

• To study the impact of occupation and education 

variables on the investor’s behaviour towards post 

office saving schemes. 

IV. RESEARCH METHODOLOGY 

The changing technological environment and IT 

related services presents an enormous challenge for 

traditional postal banking business. Due to increase 

in number of financial products day by day, the 

investors’ behaviour would be changing 

significantly towards POSBs. To study the 

investor’s behaviour and reasons behind the 

interest of investors towards POSBs a sample size 

of 320 is chosen at random. Sample belongs from 

both the genders in different demographic 

characteristics. Questionnaire is used as a main tool 

to collect primary data. To test the hypothesis 

Pearson's chi-square test is applied. The analysis 

and interpretation of the data collected are 

represented in tables using SPSS software version 

20. 

V. DATA ANALYSIS AND FINDINGS 

Table 01 provides demographic characteristics of 

the sample. A demographic characteristic of the 

respondents reveals that majority of the 

respondent’s falls in the age between 25-40 years. 

67.8 percent belong to male respondents. Most of 

the respondents (60.0 percent) are married. 26.9 

percent of the sample is having four family 

members. Sample is dominated by those 

respondents who have professional degree as 

indicated by 37.8 percent. Most of the respondents 

belong to category who is earning fifteen thousand 

to thirty thousand INR. 50.0 percent of respondents 

belong to salaried class category. Multiple response 

analysis (shown in table 02) was done with the help 

of SPSS version 15.0. The study reveals that 27.4 

percent of respondents are interested to invest in 

banks and 25.5 percent in insurance. 13.1 percent 

favour real assets to invest. 17.2 percent of the 

respondents finds good to invest in post-office. 

Mutual funds are preferred to direct investment in 

share market. 8.3 percent prefer mutual funds and 

7.1 percent prefer share market investment. Only 

1.4 percent respondents choose NBFCs as an 

investment avenue in their portfolio. NCAER 

report (2011) presented that find that mutual funds 

constitute the single largest allocation (40.8 per 

cent) compared to all other options, 21.25 per cent 

of all households prefer to invest in the secondary 

market. Other choices such as derivatives and 

bonds are even less preferred. The World Bank 

new flagship report (2012) found informal 

instruments of saving include gold, cash and 

foreign currency, as well as loans to family/ friends 

and businesses for savings of Turkish households. 

Dr. C. Thilakam and Dr. Ganesan (2012) observed 

that majority of the respondents have been 

comfortable with savings in fixed deposits, chits, 

post office etc. He inferred that 73.46 percent 

respondents have invested in life insurance 

policies, 57.07 percent investing in equity share 

market, 53.17 percent invested in gold/silver and 

62.63 percent invested in virtual real estate 

business. K. Senthil Kumar, C. Vijaya Banu, V. 

Lakshmana Gomathi Nayagam (2008) concludes 

that the rank preferences of the financial product 

studied are post office, bank deposit, gold, real 

estate, equity investment and mutual fund. Pravin 

Narayan Mahamuni, Santosh Kalabhau Apte and 

Dr. Anand Ganpatrao Jumle (2011) found that most 

of studied investors invest their money in 

insurance. As pointed in table 03, 38.2 percent of 

the respondents possess investment policy in post 

office and 46.5 percent do not possess investment 

552



policy. Rests 15.3 percent of the respondents are 

interested to invest in post office in future period of 

time. Table 04 highlights the study of investment 

preference towards various schemes of Indian Post 

Office. It reveals that 27.2 percent respondents are 

interested to invest in 5-year post office RD 

account. 13.5 percent prefer NSC investments. 13.1 

percent finds good to invest in post-office saving 

account. 12.2 percent prefer monthly income 

account and 12.0 percent prefer KVP investment. 

Only 11.4 percent prefer time deposit account as an 

investment avenue option. Rest 6.8 percent and 3.7 

percent prefer 15-year PPF account and senior 

citizens savings schemes respectively. The analysis 

on factors that motivates investors to invest in post 

office saving account is pointed out in table 05. It 

brings out that 39.8 percent prefer post office 

savings because of safe, secure and risk-free 

investment. 19.2 percent invest because of tax-free 

interest on savings in post-office. To avail the tax 

benefit under sec. 80(c) of Income Tax Act 13.6 

percent prefer post office savings. 11.3 percent of 

the respondents perceive post office schemes to 

have attractive rate of interest. 6.9 percent 

preference is because there is a facility of 

nomination in post office. Remaining 1.2 percent 

each prefer post office to save due to benefit of 

changing nomination at any time and instruments 

are transferable to any post office anywhere in 

India. Pravin Narayan Mahamuni, Santosh 

Kalabhau Apte and Dr. Anand Ganpatrao Jumle 

(2011) found that most of the respondents invest 

money for tax saving purpose. Mixed replies as laid 

out in table 06 about sources of investment advice 

shows that 41.4 percent are inclined more on their 

relatives and colleagues. 12.6 percent of the 

investors acquire knowledge from newspapers, 

12.1 percent from financial advisors and 10.8 

percent from media. The other 23.1 percent do not 

take help of the above sources of investment 

advice. These percentages of investors’ replies in 

questionnaire shows that they invest as per their 

self-acquainted knowledge or some invest under 

the guidance of agents. Analysis on criteria of 

selecting an agent in table 07 represents that 38.4 

percent of the respondents select agent on the basis 

of having personal relationship with the agent. 32.1 

percent look at the facilities offered by the agent. 

25.8 percent choose agent on his performance 

basis. Remaining investors look at other factors 

while selecting agent. Multiple response analysis 

indicated in table 08 represents that 20.8 percent 

respondents are investing their money for the 

purpose of acquiring an asset. 23.0 percent invest 

for child’s education. Next purpose is for 

retirement and old age which occupies 25.7 percent 

of the respondents. Child’s marriage accounts for 

12.3 percent of the total respondents. 18.1 percent 

reveals that respondents are investing for other 

purposes like for future safety, saving, emergency, 

business expansion, reduce tax burden, for 

grandchildren. Works on the factors that discourage 

investors to investing in postal schemes (shown in 

table 09) disclose the following interpretation: Out 

of total respondents, maximum of respondents 

(20.3 percent) reported that they are not aware of 

the schemes of post office. 14.3 percent of the 

respondents say that less advertisement is the 

reason for low awareness. 11.1 percent of the 

respondents feel that the schemes are less 

attractive. 11.5 percent face the problem of IT 

related services. Respondents having a belief that 

postal savings generate low returns comprise 9.0 

percent of the total replies. 10.5 percent experience 

that it provide late and improper services. Out of 

total responses 7.0 percent do not find agents to be 

relied upon. 6.5 percent find liquidity problem i.e. 

they think that postal savings cannot be easily 

converted into cash. Incompatible hospitality 

produces a negative impact on postal savings; 

however 8.3 percent respondents realize hospitality 

of post office to be incompatible. 0.6 percent of the 

replies believe no guarantee of money return. Very 

few (0.8 percent) find that as capital appreciation is 

low in postal savings; it demotivates them to save 

in post office. In NCAER Report (2011) it was 

found that inadequate financial resources is the 

most import reason for not investing in secondary 

markets by household followed by inadequate 

information and no skills. 

Null Hypothesis (H 01) : “An individual’s 

preference towards post office saving schemes is 

not related with educational qualification of the 

investors.” 

For 28 degree of freedom table value of chi-square 

at 5 percent level of significance is 41.337. While 

the calculated value (spot Table 10) is greater than 

table value, therefore null hypothesis is rejected. 

Thus, there is meaningful relationship between 

preference towards post office saving schemes and 

educational qualification of respondents. 

Null Hypothesis (H 02) : “An individual’s 

inclination in direction of post office saving 

schemes is not associated by means of livelihood 

of the investors.” 

For 35 degree of freedom critical table value of chisquare 

is 107.4185566. In view of the fact that 

calculated value (table number 11) is less than table 

value, thus, null hypothesis is accepted. So, it is 

concluded that occupation and preference towards 

post-office savings schemes are not related. 

Null Hypothesis (H 03) : “Factors that motivate an 

individual to invest in the saving products of 

post office are not linked with educational 

qualification of the savers.” 

For 28 degree of freedom table value of Pearson’s 

chi-square test is at 5 percent level of significance 

is 41.337. As it can be seen from the table 12 that 

calculated value is greater than table value, 

consequently factors motivating investors to invest 

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in post-office saving schemes is related with 

educational qualification of investor. Therefore, 

null hypothesis is rejected. 

Null Hypothesis (H 04) : “Reasons to facilitate and 

stimulate an individual to invest in post office 

saving avenues are not allied by occupation of 

the investors.” 

Study to find out relationship between factors 

influencing saving in post office and occupation of 

investor is shown in table 13. Given that table 

value of at 5 percent level of significance and 35 

degree of freedom is 107.7302775, which is greater 

than calculated value. Hence, null hypothesis is 

accepted which shows that there is no sustainable 

relationship between the two variables. 

VI. SUGGESTIONS 

Data analysis highlights that preference towards 

senior citizen saving scheme is very low (3.7 

percent) in the Garhwal region of Uttarakhand. 

Hence, to increase the awareness towards this 

scheme in Uttarakhand region management of post 

office should focus on specific promotion for 

Senior Citizens. Study also indicates that customers 

rely more on their friends and relatives in getting 

the information on investment avenues. So, it is 

suggested that a suitable communication through 

direct mailers or social media to be organized to 

increase the awareness of public. Facts and figures 

shown in table 07 represent that 38.4 percent of the 

respondents select agent on the basis of having 

personal relationship with the agent and some of 

the investors find agents to be unreliable. So a due 

care must be taken by the Indian Post Office while 

selecting agents. Multiple responses shown in 

Table 08 indicate that 25.7 percent of the 

respondents are investing in preparation of 

retirement. Hence, Specific scheme featuring 

retirement benefits should be arranged. In respect 

of educational qualification, Post Office Savings 

and Investment products are generally preferred by 

professional degree holders. So POs can consider 

any special focused schemes to attract more 

investment from this group. Post office offers 

diversify schemes for different needs of society. 

But research explains that in Garhwal region of 

Uttarakhand, mostly salaried class of society is 

inclined towards banking schemes of post office. 

So, organization of post office should arrange for 

awareness programmes or turn to more innovative 

policies catering other class of society. Study 

indicates that72.6 percent of the respondents 

prefers postal savings due to its safety, security and 

tax benefits features. So Indian Postal Savings 

should keep up to provide these features in future 

also. 

Study points out that most of the respondents are 

unaware of the schemes offered by post office. Still 

a lot of awareness about new postal saving schemes 

is required and the reach of schemes should be 

checked. Many respondents find postal savings to 

be less attractive So, India Post should conduit its 

infrastructure, trust and related services into a 

much larger role offering innovativeness in 

schemes and redesigns its products with change in 

benefits. Investors agree that they are unaware of 

the postal saving products due to less advertisement 

and promotion. It signifies that less promotion is a 

big barrier to attract savings. Post office 

organization must use the different visual, audio 

and audio visual modes of advertisement to 

increase awareness and promote POSBs. 

Incompatible hospitality, improper IT related 

services and late services are major factors that 

discourage investors to saving in post office. Thus, 

there is need of creating a conducive and friendly 

work environment both for the staff and the 

customers visiting the Post Offices, providing all 

IT enabled services through secure connectivity, 

improving the service quality levels in Postal 

Savings Schemes. 

VII. CONCLUSION 

Study discloses that Post Office Savings Bank in 

India differentiates its offer by building a unique 

bundle of competitive advantage. It has positioned 

its postal saving products as differentiating on the 

important attributes of safety, security and risk free 

factor. POSBs are still preferred by investors as it 

is fully backed by government and functioning for 

long. The trust is high in investors where safety of 

the deposit money is more important issue than the 

returns on investments. The only problem lies is 

that it is not taking strong steps to deliver and 

communicate the desired position to target 

customers. It needs strong marketing efforts that 

support the positioning strategy. One of the 

important challenges towards Indian Post Office is 

the revolution in IT (Computerization, networking, 

automation, process reengineering), which has 

provided automation technology to the banks and 

other financial institutions. 

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555

Table 02: Preference towards Financial 

Products 

Sl. Descriptions Percentage 

No. 

1. Post Office 17.2 

2. Bank 27.4 

3. Insurance 25.5 

4. Share Market 7.1 

5. Mutual Funds 8.3 

6. NBFC's 1.4 

7. Real Assets 13.1 

Total Responses 100.0 

Table 03: Possession of Post Office 

Schemes 


No. 

1. Yes 38.2 

2. No 46.5 

3. Thinking To 15.3 

Invest In Future 


Table 04: Preference towards Post 

Office Schemes 


No. 

1. Savings Account 13.1 

2. RD Account 27.2 

3. TD Account 11.4 

4. MIS Account 12.2 

5. PPF Account 6.8 

6. KVP 12.0 

7. NSC 13.5 

8. SCSS 3.7 




Annexure - Tables and Figures 

Table 01: Demographic Characteristics 

Categories Count Percentage 

Age Upto 25 Years 

81 25.3 

25-40 Years 

116 36.3 

40-50 Years 

67 20.9 

50-60 Years 

34 10.6 

Above 60 Years 

22 6.9 

Gender Male 

217 67.8 

Category Female 

103 32.2 

Marital Single 

128 40.0 

Status Married 

192 60.0 

Family Size 

Education 

Level 

Monthly 

Income 

Occupation 

Upto 2 Members 





More Than 6 Members 

Class X And Below 

XII 

Graduate 

Post-Graduate 

Professional Degree 

Less Than Rs. 15000 

From Rs. 15,000 To Rs. 30,000 

From Rs. 30,000 To Rs. 50,000 

More Than Rs. 50,000 

Job 

Business 

Retired 

Professional 

House-Wife 

Student 

45 

59 

86 

77 

30 

23 

26 

27 

77 

69 

121 

89 

135 

63 

33 

160 

57 

9 

30 

33 

31 

14.1 

18.4 

26.9 

24.1 

9.4 

7.2 

8.1 

8.4 

24.1 

21.6 

37.8 

27.8 

42.2 

19.7 

10.3 

50.0 

17.8 

2.8 

9.4 

10.3 

9.7 

556



Table 05: Factors Influencing to Invest 

in Post Office 


No. 

1. Tax-Free Interest 19.2 

2. Safe, Secure And 39.8 

Risk-Free 

Investment 

3. Nomination 

6.9 

Facility Is 

Available 

4. Attractive Rates Of 11.3 

Interest 

5. Nomination Can 1.2 

Be Changed At 

Any Time 

6. Instruments Are 1.2 

Easily Transferable 

7. Regular Monthly 6.9 

Income 

8. Tax Benefit 13.6 


Table 06: Sources of Investment Advice 

Sl. No. Descriptions Percentage 

1. From Relatives & 41.4 

Colleagues 

2. From Newspapers 12.6 

3. From Financial 12.1 

Advisors 

4. From Media 10.8 

5. Other Sources 23.1 


Table 07: Criteria of Selecting an Agent 


1. Personal 

38.4 

Relationship With 

The Agent 

2. Performance Of 25.8 

The Agent 

3. Facilities Offered 32.1 

By The Agent 

4. Other Factors 3.7 


Table 08: Purpose of Investment 


1. For Retirement 25.7 

And Old Age 

2. Acquiring An 20.8 

Asset 

3. Child's Education 23.0 

4. Child's Marriage 12.3 

5. Other Purposes 18.1 


Table 09: Variables having negative 

impact on Post Office Savings 


1. Poor Awareness 20.3 

2. Less aware due 14.3 

to Less 

advertisement 

3. Less Attractive 11.1 

4. Low return 9.0 

5. Problem of 6.5 

liquidity 

6. Low Capital 0.8 

Appreciation 

7. Problem of IT 11.5 

557



and technology 

related services 

(e-payment) 

8. Late and 

10.5 

improper service 

(not satisfied 

with service) 

9. Agents not 7.0 

reliable 

10. incompatible 8.3 

Hospitality 

11. No guarantee of 0.6 

return of money 


Table 11: Degree of Association between Customer Preference towards POSBs and 

their Occupation 

Descriptions Occupation 

Total 

Job Business Retired Professional 

House 

-Wife Student 

Savings 

Account 37 10 0 4 7 5 63 

RD Account 63 21 4 14 15 14 131 

TD Account 23 10 2 8 6 6 55 

MIS account 31 8 5 4 6 5 59 

PPF account 22 7 0 4 0 0 33 

KVPs 32 11 2 4 7 2 58 

NSC 40 10 1 10 1 3 65 

SCSS 6 3 3 4 2 0 18 

Total 16 

0 57 9 30 33 31 320 

Pearson Chi-Square critical calculated value=57.86259023 

Table 10: Degree of Association between Customers Preference towards POSBs and 

their Educational Qualification 

Descriptions Educational Qualification 

Class X and 

Post- Professional Total 

Below XII Graduate Graduate Degree 

Savings Account 9 8 11 14 21 63 

RD Account 9 13 29 33 47 131 

TD Account 0 4 12 11 28 55 

MIS account 5 6 14 16 18 59 

PPF account 1 0 6 5 21 33 

KVPs 5 2 22 11 18 58 

NSC 1 3 15 17 29 65 

SCSS 2 0 3 5 8 18 

Total 26 27 77 69 121 320 


Table 12: Degree of Association between Motivating Factors towards POSBs and 

their Educational Qualification 

Descriptions Educational Qualification 

Total 

Class X 

And 

Below XII Graduate 

Post- 

Graduate 

Professional 

Degree 

Tax-Free Interest 5 9 26 20 49 109 

Safe, Secure and 

Risk-Free 

Investment 22 15 51 48 90 226 

Nomination 

Facility is 

Available 5 2 8 5 19 39 

Attractive Rates 

of Interest 1 4 17 12 30 64 

Nomination can 

be changed at 

any time 0 0 2 0 5 7 

Instruments are 

Transferable 0 1 0 0 6 7 

Regular Monthly 

Income 3 4 10 11 11 39 

Tax Benefit 

1 4 12 22 38 77 

558



Under sec.80c of 

Income Tax Act 

Total 26 27 77 69 121 320 


Table 13: Degree of Association between Motivating Factors towards POSBs and their 

Occupation 

Descriptions 

Occupation 

Total 

Tax-Free 

I 

Safe, 

t 

Secure 

t 

and Risk- 

Free 

Job Business Retired Professional 

House 

-Wife 

Student 

60 16 2 14 7 10 109 

10 

9 41 8 23 26 19 226 

Nomination 

Facility is 

Available 23 4 1 1 10 0 39 

Attractive 

Rates of 37 9 2 5 6 5 64 

Nomination 

can be 

changed at 5 1 0 0 1 0 7 

Instruments 

are 5 1 0 0 1 0 7 

Regular 

Monthly 19 4 4 3 5 4 39 

Tax Benefit 

Under 

sec.80c of 45 15 0 14 1 2 77 

Total 16 

0 

57 9 30 


33 31 320 

559

Identifying Factors influencing preference towards Post Office ...

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