A Project on Study of Innovative ways to

Encourage Personal Savings in Mumbai

SUBMITTED BY
Kasim Asiffuddin Shaikh
Class Roll No.: 128
T.Y.B.A.F. SEMESTER – VI
PROJECT GUIDE
Ms. Aksha
SUBMITTED TO
UNIVERSITY OF MUMBAI
Valia C.L. College of Commerce

Affiliated to University of Mumbai

D.N. Nagar, Cosmopolitian Education Society Road,
Andheri (West)
Mumbai – 400053.
A.Y. 2019 – 2020.

1
 CERTIFICATE
This is to certify that Mr. Kasim Asiffuddin Shaikh, Class Roll No.:
128, of Third Year B.A.F., Semester VI has successfully completed the
project on “Study of Innovative ways to Encourage Personal
Savings In Mumbai” under the guidance of Prof. Ms. Aksha in the
Academic Year 2019-2020.

Date:_____________

Project Guide: Principal:

External Examiner: College Seal:

2
 DECLARATION

I, Kasim Asiffuddin Shaikh, a student of Valia C.L. College of Commerce,

T.Y.B.A.F. SEMESTER – VI hereby declare that I have completed my project
on “Study of Innovative ways to Encourage Personal Savings In Mumbai ”
in the Academic Year 2019 – 2020.This information is true and original to the
best of my knowledge.

Date:

Signature of Student

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance
to do this project.
I would like to thank my Principal Shobha Meum for providing the necessary
facilities required for completion of this project.
I would also like to express my sincere gratitude towards my Project Guide Ms.
Aksha, whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially My Parents and Peers who
supported me throughout my project.

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 Index
Sr. No. Topic Page No.

 Abstract 06

1. Introduction 08
2. Hypothesis 10
3. Objective 12
4. Review Of Literature 14
5. Discussion 30
7. Conclusion 32
8. Bibliography 34

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 Abstract
Saving of capital is always essential for each and every individual. Because these saving helps
us at any time whenever any individual meets any kind of financial crisis. So, the saving of
capital must be part of every individual as a compulsory habit. At the time of retirement period
these saving become the main source of income for an individual. These saving not only help
in the development of an individual this also helps in the development of country development
and its wealth. There are many ways to save the capital by an individual by creating or setting
saving goals these goals eventually helps one to save more capital and by also having less
spending on unwanted things and also saving in physical assets and other household savings.
There are many ways and methods that influence an individual to save more and also to
promote saving. The savings are mainly based on the economic and financial status of an
individual. The other best way to save one's income is to have a personal account in any private
or government bank as nowadays there are many beneficiary schemes and simple techniques
are present in order to save your capital at the banks. Especially the low cost savings account
and there are many useful schemes provided by the banks which benefit the public people. In
spite of all the benefits provided by the banks and a good amount income many people fail to
save their capital and people face many financial crisis and issues with their saving patterns.
Though the ultimate benefit gainers are the people. This study has stated that it is essential for
every individual to save their capital. This study concludes that the every individual must save
some amount of capital at their respective personal account in order to use them in the future
at any kind financial crisis and necessity.

Key Words: Banks, capital, development, financial crisis, personal savings.

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INTRODUCTION

7
 INTRODUCTION

Saving capital is a very essential and important for every individual. As these savings help an
individual at any time whenever there is need for finance. The savings in the household sector
and the savings in physical assets are also very beneficiary. The wise savings in currency,
deposits, and investments in the financial assets also develops an individual’s saving. (Uma
Datta Roy Choudhary, 1997). These savings mainly depends on various aspects in relation with
an individual such as an individual’s income and his status and position in the societal level.
And it also depends on the ratio of the current income to peak level income reached previously
which helps an individual to prepare a budget plan to set his/her financial saving goals.
(Duesenberry, 1949). There are many correlative relationships between the savings and the
factors that affect an individual from saving. The savings not only develops an individual it
also helps major growth at the income sector overall the country also. This also proves the
functional distribution if the income. (Pandit .B.L, 1991) There are different trends in saving
pattern for every individual and there are different behavioural approaches for every
individual.There is many effective benefits obtained from savings. The average percentage of
saving people is nearly about 60 %.( PulapreBalakrishnan, 1996).The bulk of National savings
is obtained from the household sector saving. And there are enormous ways that promote the
household sector saving and their favourable growth. (Aidus Salam and UmmalKusun, 2002).
There are many awareness programmes are held on the benefits of saving and investments.
And these provide and influence the saving nature for an individual. Many views and opinions
are prevailed among the customers regarding the saving and benefits etc. (S.Kalavathy, 2009).
The propensity to save income rises eventually at times. Due to the various factors that drive
them to save. The saving ideas provided by the banks also attract many people to start saving.
(HarunaIssahaku, 2011). Many people feel secure and satisfied when they save on physical
immovable assets. The savings also help in the increase of the National income. There are many
schemes and ways introduce by the banks to increase the personal saving rate. (Paula
Samuelson and William Nordhaus, 2009).

The saving of capital can be easily achieved by an individual when an individual start
setting saving goals and also pay the excess money regularly.And the saving can be effective
when an individual has a high yield accounts. (Miranda Marquit, 2007). The saving is very
important for every individual as to have and lead a good retired life and at times it is also
beneficial for the future generations. There also many essential schemes provided by the banks

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regarding the best investment plans for an individual saving. (Maya Rai,2008).These savings
can also be achieved by also having profitable investment and less consumption of money on
unwanted stuffs. There also certain disadvantages where due to the increasing interest rates
might lose certain customers. This can be avoided by having low cost saving accounts.(Susan
Greenberg,2014).

There also many measures taken by the banks where the banks conduct various
campaigns and meetings on the features of saving and the usefulness. And the public are also
fed with the knowledge of the technological innovations where there is the potential technique
to access the savings account.(Jessica Goldberg,2014).Certain issues with the bank which
discourage the below average people are the expensive debt this could be removed by the
reduction of the high interest rates is a possible way to encourage all class people have saving
accounts. These innovative ways by the banks in-order people and boost to encourage more
savings of the capital (Deepthi K.C , 2012).The effective way to increase the saving must be
focused on the individuals household savings which must be increased. And by also the less
spending of capital and start saving more capital. The higher the personal saving the increase
of the economic growth (Karen Dinan,2010).

The low personal savings rates are increasing and the cyclical time periods must be
followed to increase the savings. The optimism in society increases due to the personal savings
(Leonatam and Utpal Dholakia,2014).There are two main phenomenon regarding the savings
and investments. The competitive increase in non-functional consumption on ceremonies. The
savings mainly decrease due to rise in the use of prestige articles. Ruddar Dutt,1972).The
savings rate decrease due to the lack if knowledge regarding the savings and their benefits and
these occur on small factors and certain bad influences and pessimistic views on the bank
culture.(Pandey and Viswanath Singh,1972).

The determinants of savings depend on the Government savings schemes and the
private advertisements. There is more of physical assets savings prevailing in the society and
there is also equal support and increment in the household sector. These also help in the
development of the country. (Jayaraman, 1979).

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HYPOTHESIS

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 HYPOTHESIS

A hypothesis is an approximate explanation that relates to the set of facts that can be tested by
certain further investigations. There are basically two types, namely, null hypothesis and
alternative hypothesis. A research generally starts with a problem. Next, these hypotheses
provide the researcher with some specific restatements and clarifications of the research
problem.

The criteria of the research problem in the form of null hypothesis and alternative
hypothesis should be expressed as a relationship between two or more variables. The criteria
is that the statements should be the one that expresses the relationship between the two or more
measurable variables. The null hypothesis and alternative hypothesis should carry clear
implications for testing and stating relations.
The null hypothesis and alternative hypothesis are required to be fragmented properly
before the data collection and interpretation phase in the research. Well fragmented hypotheses
indicate that the researcher has adequate knowledge in that particular area and is thus able to
take the investigation further because they can use a much more systematic system. It gives
direction to the researcher on his/her collection and interpretation of data.
The null hypothesis and alternative hypothesis are useful only if they state the expected
relationship between the variables or if they are consistent with the existing body of knowledge.
They should be expressed as simply and concisely as possible. They are useful if they have
explanatory power.
The null hypothesis is generally denoted as H0. It states the exact opposite of what an
investigator or an experimenter predicts or expects. It basically defines the statement which
states that there is no exact or actual relationship between the variables. The alternative
hypothesis is generally denoted as H1. It makes a statement that suggests or advises a potential
result or an outcome that an investigator or the researcher may expect. The hypothesis stated
here is as follows:

Null Hypothesis (H0):

There is no significant association between personal savings and deposits.

Alternate Hypothesis (H1):

There is significant association between personal savings and deposits.

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OBJECTIVES

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 Objectives

 To know the problems faced by the customers in saving despite the clear benefits and
to analyse the innovative thoughts by banks to encourage personal savings.
 To set achievable savings Goals
One of the biggest issues is that you may not have a goal. You just have an idea
that you need to save money, but there is no true purpose for your money. It’s hard to
stay motivated when you have no clear idea of what the money is for. So it is much
easier just to spend it.
 Reward Yourself for Reaching Small Milestones
You can reward yourself at certain milestones depending on the length of your
goal. This helps you track your progress, and also helps keep you motivated to continue
saving. These rewards should be fun things you might not normally do, but that are still
small and within reason. It might be a day off (if you can take a personal day at work),
a picnic in the park, dinner at a nicer restaurant than usual, or some other enjoyable
activity. Just don’t blow all your savings while enjoying your small reward.
 Automate Your Savings
One of the easiest ways to get into the habit of saving is to set up some automatic
method of moving your money around. Whether you have money from your pay check
automatically deposited into a savings account (including a retirement account), or
whether you do an automatic transfer each month, automatically having your savings
moved around can help you adjust your lifestyle to what you end up as “take home”
pay. Soon you won’t miss the money, but it will still grow and work for you.
 Look for High Yield Accounts
One of the most depressing things about savings is how slowly the money
grows. You can increase your satisfaction with savings by looking for high yield
accounts. While yields are still generally low, you can still do better than the less than
1% offered by a traditional savings account. You can also look for alternative products
like money market accounts and funds, high-yield CDs and bonds. However, be aware
that some of these options may not be FDIC-insured, and come with greater risk.

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 REVIEW OF
LITERATURE

14
 Review of Literature

Indian middle-class families steadily moving towards investing in financial assets:

The slow and steady change in the savings profile of the country could in the next decade
ensure a steady flow of funds to other asset classes.

Suchitra Kamath, a 54-year-old conservative college professor in Mumbai, till recently

knew and trusted only one way to secure her financial future — bank fixed deposits. Three
decades of satisfactory returns with guaranteed return on capital is giving way to worries about
whether she is on the right path to secure her future given that monthly bill payments are on
the rise.
The rapid fall in deposit rates in the last one year has shaken her belief in her favourite
instrument for investments. Although she has been contemplating a shift to alternative ways of
parking her surplus, the process quickened after demonetisation as banks sharply reduced
deposit rates. What has been a no no in her family is now becoming a reality.

"You won't progress in life with only bank fixed deposits," says Kamath, who has
scaled her bank fixed deposits to just about 10% of her total savings from 90% about 8 years
ago. "Fixed deposits will not help if you put bulk of your investments in those over a long
period. Mutual fund investments yield much better if you hold patience. Kamath is a classic
example of a quiet revolution taking place in India's retail savings space.

The change is already visible. Household financial savings in shares and debentures
increased to 0.7% of GDP in fiscal year ended 2016, from 0.4% in fiscal 2014 and fiscal 2015.
The proportion of fixed deposits dropped to 4.7% of GDP in fiscal 2016, from 4.9% in fiscal
2015 and 5.8% in fiscal 2014, central bank data shows. Even physical assets like land and
gold, which used to be dominant assets in an Indian family's portfolio, are losing their
weightage. These are down at 10.8% of gross financial savings in 2014-15 from 15.5% in 2011-
12.

Other data also points to a preference for financial assets though it may be a bit skewed
because of the bullish sentiment. Net inflows into domestic mutual funds and the equity market
are on the rise. In the three calendar years ending 2016, a whopping Rs 1.43 lakh crore has
come into the local market through mutual funds compared to a net outflow of Rs 27,070 crore
in 13 years starting 2001. Data from the insurance industry also shows a similar trend. Assets
of the insurance industry are up 75% at Rs 28 lakh crore in the past five years.

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 Dilip Nachane, a professor at the Mumbai-based Indira Gandhi Institute of
Development Research (IGIDR), says a favourable tax policy, urbanisation and a new breed of
young investors are driving this push towards high yielding investments. To a large extent what
is driving this change is an uneven tax policy because of the double taxation of bank FDs,
which effectively depresses the returns compared to a marginal tax or almost an exemption on
dividend income," says Nachane. "More and more investors are seeking higher post-tax returns.
Younger investors, in particular, are more entrepreneurial and risk-taking. They prefer stocks
and equity instead of FDs because interest rates do not match their expectations of real returns."

Nikhil Naik, a Mumbai-based financial distributor, says the sharp drop in bank deposit
rates in the last one year along with demonetisation has forced small investors to think about
alternative investments to park their savings. It is not as if all small investors are moving
towards equities en masse. Some investors, particularly senior citizens, who have seen many
such interest rate cycles are staying put because they prefer safety of investments to sky-high
returns, and rightly so.

India has seen wider movements in interest rate cycles," says Manoj Nagpal, CEO of
Outlook Asia Capital, a Mumbai-based wealth manager. "The 6 to 7% one-year fixed deposit
rate of SBI is not an alltime low because we have seen a 5% FD rate as well. Senior citizens
who have been investing in FDs have also seen this cycle, so they are not shifting."

Saving Schemes In India Which you Should Invest:

The pressures to grow your wealth is prevalent across the world, as you may want to
set aside funds for emergencies, secure finances for retirement, and manage your daily
expenses. Investments are a smarter way to grow your money, so you can cater to your
everyday needs and secure your future easily. There are several savings schemes offered by the
government, banks and financial companies, to encourage investors to invest and earn more
returns. However, before you start investing, make sure you delve deep into the pros and cons
of your investment options and ace your financial planning endeavours. If you’re planning to
invest your money, here are the best investment schemes to help you save for your future
financial needs.

Mutual funds: You can invest in mutual funds if you want to explore and benefit from equities
and debts, which gives you an option to balance risk and returns based on your preference.
Investing in the share market through mutual funds is a safer option than making a direct

16
investment in the stock market. You can consider starting a systematic investment plan (SIP),
which is one of the best ways to invest in mutual funds by making small regular investments.
This helps you earning better returns in comparison to other investment options.

Fixed deposits (FD): FDs are the safest and most hassle-free investment option wherein you
deposit a fixed sum of money for a specified period and earn interest at fixed rate of return. If
you’re looking for higher interest rates, choose to invest in FDs that offer high interest rates
and greater flexibility in terms of tenor, and frequency of periodic interest payouts.

In case of emergencies, you can also consider breaking your FDs prematurely, or taking
a Loan against Fixed Deposit. You can also consider re-investing the interest, to receive a lump
sum amount after your FD matures. Investing in FDs can enable senior citizens to gain higher
interest rates, so they can plan their retirement better.

Consider investing in Bajaj Finance Fixed Deposit, which offer one of the highest
interest rates, along with the option to choose cumulative or non-cumulative fixed deposits.
You can also choose the frequency of your interest payouts, which can be monthly, quarterly,
half-yearly or yearly.

Personal Provident Fund (PPF): As the safest and most popular investment option in India,
PPF is a government-backed long-term saving scheme that is tax-free. The amount of money
deposited in PPF is available as deduction under section 80C of Income Tax Act; and the
interest earned on PPF is also not taxable. PPF may be opened in a bank or post office, where
your money gets invested for 15 years, and can be extended by another 5 years. There is a lock-
in period of 5 years and presently, the PPF investments earn a compound interest at 7.90% p.a.
You need to make a minimum annual investment of Rs.500 and can make a maximum
investment of about Rs. 1,50,000.

National Saving Certificate (NSC): NSC is popular government-backed saving option that
provides guaranteed returns with tax savings. A safe investment, you can invest in NSC at any
post office for a period of five years. The interest rates on NSC is decided by the government
and is reviewed every quarter. The interest rate however, does not change during the tenor of
NSC once your investment has been made. Presently, your investment in NSC yields returns
of 7.90%, which is compounded half yearly. A minimum investment of Rs.500 can be made in
NSC, without any maximum limit. The best thing is that you can claim tax deductions, but to

17
the maximum amount of Rs.1,50,000 under section 80C. Keep in mind that the interest earned
on NSC is taxable, so when filing your tax returns, you must add the interest accrued on NSC
to your total income.

Equity Linked Savings Scheme (ELSS): As the name suggests, this mutual fund scheme
helps in parking your investment in equity. ELSS are tax-saving mutual funds that allow a
deduction up to Rs. 1,50,000 under section 80C. It comes with a lock-in period of 3 years.
You can earn higher returns by investing in ELSS since all the investments are made in the
equity market that can help you beat inflation, but there is always a risk attached to investing
in equity. An investment in ELSS can be made from as low as Rs. 500 and there is no maximum
limit on investment in these funds.
It is wise to choose a combination from these investment options and schemes, and
spread your risk by investing in safe options like FDs and diversifying with options like mutual
funds. You can also calculate your returns by using a fixed deposit calculator. Being
prepared for your financial wellbeing and planning in advance is the right way to ensure that
you and your family are prepared to deal with all kinds of financial contingencies.

Findings
The present study recorded 100 respondents out of which a majority of 44% of the
respondents were belonging to the age group of 26 years to 36 years. And 41% of the
respondents belonged to the age group of 37 years to 49 years. And the 10% of the respondents
were below 25 years and the remaining 5% of the respondents were above 50 years.

18
 The study revealed that majority of 53% of the respondents were recorded as male and
37% of the respondents were female and the remaining 10% of the respondents preferred not
to reveal their gender.

The respondents monthly income was recorded were there was equal majority of each
33% and 33% of the respondents income was 10000 to 30000 rupees and 40000 to 50000
rupees. And 26%of the respondent’s income was above 50000 rupees. And the remaining 8%
of the respondent’s monthly income were below 10000 rupees.

The number of earning members in the family was recorded as the majority of 31% of
the respondents family had 2 earning members and 29% of the respondents family have 3
earning members and 15% of the respondents had 1 and 4 earning members in their family and
the remaining 10% of the respondents had 10 earning members in their family.

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 The respondent’s preference among savings and investing recorded that the majority of
63% of the respondents preferred savings over investment and the remaining 37% of the
respondents preferred investments over savings.

The respondent’s participation involvement in encouraging savings as an individual

was also recorded where the majority of 69% of the respondents encouraged savings as an
individual and the remaining 31% of the respondents did not encourage savings as an
individual.

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 The respondent’s opinion in the nature of complication of the savings was recorded
where the majority of 55% of the respondents believed that the savings were complicated in
nature and the remaining 45% of the respondents believed that the savings were not
complicated in nature.

The respondents were also asked whether they had savings account in which the
majority of 75% of the respondents had personal savings account and the remaining 25% of
the respondents did not have personal savings account.

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 The respondents were also asked whether they preferred savings in physical assets
which recorded a majority of 69% of the respondents preferred saving in physical assets and
the remaining 31% of the respondents did not prefer saving in physical assets.

The respondents were also enquired for a month how much was their average saving
deposit which recorded that the majority of 60% of the respondents average saving deposit was
about 1000 to 5000 rupees and 21% of the respondents average saving deposit was nearly above
5000 rupees and the remaining 19% of the respondents average saving deposit was below 1000
rupees.

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 The respondents preference in choosing the bank among the private and Government
banks were also asked where the majority of 54% of the respondents preferred Government
banks and the remaining 46% of the respondents preferred private banks.

The respondents were also asked about how secured they felt saving cash at banks
which recorded that the majority of 62% of the respondents felt secured saving cash at banks
and the remaining 38% of the respondents felt in secured saving cash at banks.

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 The respondents opinion among the Government and private bank regarding the
beneficiaries provided were also recorded where the majority of 66% of the respondents
thought that the private banks provide more benefits than the Government banks and the
remaining 34% of the respondents thought that the Government banks provide more benefits
than the private banks.

The respondents were also enquired regarding the barriers that prevail which stop an
individual from saving which recorded that the majority of 49% of the respondents thought that
the saving reduces due to the upgrading of the lifestyle and 38% of the respondents thought
that saving is very lame and the remaining 13% of the respondents have stated that the saving
is impossible when there is no financial goals for an individual.

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 The respondents were also asked regarding the best way to save money which recorded
majority of 46% of the respondents thought there must be savings goals set and 31% of the
respondents thought that the best way to save money is to create interest bearing account and
17% of the respondents have stated that eliminating debts is also best way to save money and
the remaining 6% of the respondents thought that annualising the spending is also best way to
save money.

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FINANCIAL LITERACY AND ALTERNATIVE SAVINGS TOOLS

A study in Dharavi, a slum in Mumbai, found that despite having a savings account, women
were using different mechanisms to hide money in places such as food jars, inside a pile of
clothes, a talcum powder box, rather than depositing savings in banks. Many women were not
aware of banking products and alternatives available to them, and many did not see value in
frequently going to banks to deposit money. We found a similar trend in our study site too.
These findings motivated us to design context-specific financial education modules for women
that addressed the knowledge gap about financial products and services; as well as the
underlying behavioural biases impacting the financial decisions of women.

A WOMAN SHOWING WHERE SHE HIDES HER MONEY IN THE KITCHEN

We developed modules using a story telling approach through a series of comic books,
† which raise points on the (i) financial indiscipline, temptation spending, and the financial
risks of keeping cash on hand and other informal savings mechanisms; (ii) lack of financial
awareness faced by relatable characters; and (iii) approachable solutions that reduce savings
inertia in the long-term. One aspect of the story focused on the individual’s potential to cut
down on their temptation goods, or “non-essential items.” In a study that examined the common
habit of excessive expenditure on temptation goods researchers found that most individuals
were aware of the expenditures they needed to reduce. For example, a study revealed that of
the 28 per cent of respondents who were able to name an expenditure they wanted to eliminate,
44 per cent marked that as alcohol and tobacco. Keeping this in mind, in our financial education
training, we encouraged respondents to cut down on such expenditures to increase savings.

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 AN IMAGE FROM THE COMIC BOOK DESCRIBING HOW TO CUT DOWN
ON EXCESS EXPENDITURES

Stories were developed keeping the local context in mind, by including familiar
physical locations and using local language to communicate information. The real life
incidences described in the comic book highlight the importance of behavioural concepts such
as financial discipline through prioritization and self-awareness; and loss due to delayed
savings and temptation spending when attempting to save money over a long-term.

A FEMALE RESPONDENT AND HER FAMILY AND NEIGHBORS LISTEN

TO THE STORY BOOK ON SAVINGS

27
 Stories highlighted the risks of using informal institutions and the benefits of using
banking services or other formal channels such as government or local NGO promoted SHGs.
By providing an example of a female vegetable vendor and how she was able to manage her
finances for an emergency expense, the comic book story provided a point of reference that our
women respondents could use as a comparison to analyse their own financial situation.
In a separate study, we tested financial literacy tools with migrant labourers in New
Delhi and we found that the targeted and context driven financial training was effective in
increasing savings; however, lack of access to savings devices (or banking services) hindered
the respondents’ ability to save as much as they wanted to. Hence, for this experiment, we
hypothesized that if a woman is informed about the process of savings, she will also need a
savings device. Given the small scale of this study, providing access to banks was not within
our control; hence, we provided a low-cost savings device: a lock box (with a key which women
kept) to understand whether an alternative savings method could increase savings (though we
encouraged women to save with formal institutions). We asked women not to open the lockbox
(soft commitment) till they visit banks or SHG meetings where they can deposit their savings.

AN INSTRUCTOR GIVING THE LOCKBOX TO A FEMALE RESPONDENT

28
 A WOMAN TRYING USING HER KEY FOR THE LOCKBOX A WOMAN
RECEIVING THE LOCK BOX AND KEY

FINANCIAL EDUCATION IMPROVED THE SAVINGS AND PERCEPTION ABOUT

BANKING SERVICES

Eighty-five women were provided with financial literacy training. After the training, we tested
these women’s (treatment group) level of understanding of various financial concepts such as
a budget, compound interest, a No-Frills Account, the importance of saving, disadvantages of
informal saving channels, as well as the advantages of formal savings institutions, and assigned
a financial literacy score to each participant.
Research indicates that the poor are reluctant to use the formal institutions because they
find the banking system unfamiliar, threatening, or stigmatizing, creating the perception that
he or she is not a valued customer.
Clearly data indicates that while financial literacy is important, however, without a
saving device, financial education alone has no significant effect. While financial literacy alone
increased the savings by 8%, it was the provision of a lock box that significantly increased the
savings capability of people.
Providing financial literacy training and a saving tool was not the only reason to
enhance the savings behaviour of individual. Study indicated the presence of other factors,
mainly women’s literacy, which influenced women’s motivation to save more.

29
DISCUSSION

30
 Discussions

The present study has stated that the saving of an individual’s capital is very important and
very essential and this study shows the preferences of the individual among the saving and
investing their capital and average saving amount per month and the kind of bank they would
prefer and believe which has more beneficiaries and safety measures and the barriers which
prevail while saving one's income and the best essential way to save more capital.
There are various parameters discussed in this study regarding the respondents view on
savings their capital according to their wish and choice of preferences among the different
banks were they the respondents feel the sacredness. Hence these are the aspects which are
discussed in the above study on the innovative ways to encourage personal savings.

31
CONCLUSION

32
 Conclusion

This study concludes that the respondents in general prefer to save their capital rather than
investing and the essential benefits provided by saving capital and the necessity for an
individual to save capital which provides more support during the retirement period in an
individual’s life. The study also revealed various opinions of the respondents regarding the
personal saving in regard with their family background and the socio economic status of every
individual.
Hence the study concluded that the savings is very essential for every individual and
each and every individual must have the habit of saving which benefits the individuals in many
factors in the near future.
These not only develops an individual wealth these also develops the country’s wealth
which give a great progress in the development of the economic status of our country.

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BIBLIOGRAPHY

34
 BIBLIOGRAPHY

 AIDUS SALAM AND UMMAL KUSUN (2002).SAVING BEHAVIOURS.IEJ.50

(1).PP.77-80.
 Banerjee, Abhijit and Esther Duflo. “The Economic Lives of the Poor,” MIT Press,
October 2006.
 Bertrand, Mullainathan and Eldar Shafir. 2006.
 CHANDRA SEKAR.K AND GEETHA K.T. (1978).NATIONAL SAVINGS AND
ECONOMIC GROWTH.SOUTHERN ECONOMIST.NOVEMBER.PP.13-15.
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Websites:

 https://www.statisticssolutions.com/null-hypothesis-and-alternative-hypothesis/
 https://moneyning.com/motivation/5-ways-to-encourage-your-savings-habit/
 https://economictimes.indiatimes.com/wealth/save/indian-middle-class-families-
steadily-moving-towards-investing-in-financial-
assets/articleshow/58136476.cms?utm_source=contentofinterest&utm_medium=text
&utm_campaign=cppst
 https://www.bajajfinserv.in/insights/best-saving-schemes-in-india

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