61
10.4 SHG member’s savings outside the SHG
It is interesting to understand how many members have saved beyond the mandated
savings and which institutions they preferred.
Figure 10.1 Comparison of Tamil Nadu and Karnataka – Number of members
who have saved in other institutions
Figure 10.1 clearly indicates that members both in Tamil Nadu and Karnataka prefer to
save their excess money in LIC and in banks (savings account). The trust in the LIC
policy is more to do with the fact that they get a lump sum at the end of the period of the
sum assured. While the chit funds and the post office savings are still quite popular
among members in TN, we find that recurring deposit scheme has more takers in
Karnataka. The above figure shows that more than 50% of the members have LIC
policies and about 30% of the members have bank savings accounts. The trust in the LIC
Bank
Post
office
RD
(monthly
)
FD
Small
Savings
scheme
LIC
Chit
fund,
friend
Chit
fund,
shop
(monthly
)
Provision
(monthly
)
Others
TN 207
40
20
12
7
179
54
28
1
0
KAR 147
14
41
4
0
252
6
0
0
7
0
50
100
150
200
250
300
Number of Members
