MATHS PROJECT

AN ASSIGNMENT SUBMITTED TO FULFILL

THE REQUIREMENT OF INTERNAL MARKS
FOR SEMEMESTER 2 FOR THE ACADEMIC
YEAR 2024-25

SUBMITTED BY: PRASHANTH. K

GRADE: 10A
ROLL NO.: 36
SUBMITTED ON: 17/10/2024

TOPIC 1 : Survey of various types of Bank Accounts and the rate of

Interest offered. (Choose any 3 banks)
1. Introduction to Banking
Banking in India is a cornerstone of the country's financial system, playing a
critical role in the economy by offering a range of services including accepting
deposits, providing loans, facilitating money transfers, and offering investment
options. Banks act as financial intermediaries, channelling savings from
individuals and businesses into productive uses such as business expansion,
infrastructure development, and personal consumption. This enables the
economy to grow by ensuring efficient allocation of capital.

Indian banks cater to a diverse population, from urban to rural areas, providing
financial inclusion through various schemes such as Jan Dhan Yojana. They
offer multiple types of accounts including savings, current, and fixed deposit
accounts, each tailored to meet specific financial needs. In addition to
traditional banking services, Indian banks have embraced digital banking,
making services such as mobile banking, internet banking, and UPI (Unified
Payments Interface) transactions accessible to the masses.

The banking sector is regulated by the Reserve Bank of India (RBI), which
ensures the stability of the banking system, sets interest rates, and oversees
monetary policy. Public sector banks like State Bank of India (SBI), along with
private and cooperative banks, form the backbone of India's banking landscape,
contributing significantly to economic growth and financial inclusion.

2. Types of Bank Accounts

Common types of bank accounts offered by Indian banks:

Savings Account

A savings account is the most common type of bank account offered by Indian banks. It is
designed for individuals to deposit their savings, which can be withdrawn when needed.
These accounts earn a modest interest rate, typically between 2.5% to 4%, depending on the
bank. Savings accounts offer liquidity, allowing account holders to access their funds anytime
through ATMs, online transfers, or bank branches. They often come with additional services
like debit cards, passbooks, and internet banking. Although the interest earned is relatively
low, the primary advantage of a savings account is its ease of use and security for short-term
deposits.

Current Account

A current account is mainly used by businesses, entrepreneurs, and professionals who

need frequent transactions. Unlike savings accounts, it has no limits on withdrawals or
deposits, making it ideal for daily business operations. Most current accounts do not
offer interest but provide benefits like overdraft facilities, allowing users to withdraw
more than their balance. These accounts come with higher transaction limits and are
linked to various banking services such as online transfers, check issuance, and
electronic fund transfers (NEFT/RTGS), ensuring smooth business transactions.

Fixed Deposit Account

A fixed deposit (FD) account is a type of investment account where a lump sum is
deposited for a fixed period, ranging from a few months to several years, at a higher
interest rate than a savings account. The interest rate for FDs varies based on the
tenure and the bank, typically ranging between 5% to 8% per annum. Fixed deposits
are ideal for those looking for a safe investment option with guaranteed returns.
However, premature withdrawal from an FD usually incurs a penalty, making it less
liquid than a savings account. This account is popular for long-term savings or
investment purposes.

Recurring Deposit Account

A recurring deposit (RD) account is designed for individuals who wish to save a fixed
amount of money regularly over a predetermined period. Unlike fixed deposits, where
a lump sum is deposited, RDs require monthly deposits of a fixed sum for a tenure
that ranges from six months to ten years. The interest rate is similar to that of fixed
deposits, typically between 5% and 7%, and is compounded quarterly. RDs are
popular for people with regular incomes who want to build their savings gradually
over time. At the end of the tenure, the depositor receives the accumulated amount
along with the interest earned.

3. Formula
To calculate interest on savings accounts or fixed deposits, the formula is
usually:

Simple Interest=P×R×T/100

Where:

 P = Principal amount (the initial deposit)

 R = Rate of interest (annual)
 T = Time (in years)

For compound interest, the formula is:

A=P(1+R/n)nt

Where:

 A = Amount after interest

 n = Number of times interest is compounded per year

4. Types of Banks

Major categories of banks in India:

Public Sector Banks

Public sector banks in India are government-owned financial institutions where the
majority stake (more than 50%) is held by the government. These banks play a crucial
role in implementing government policies, especially in rural and underserved areas.
Notable examples include the State Bank of India (SBI), Punjab National Bank
(PNB), and Bank of Baroda. Public sector banks focus on financial inclusion and offer
services like savings accounts, loans, and deposits. They are trusted for their
reliability, but sometimes face challenges such as lower efficiency and slower
adoption of technology compared to private sector banks.

Private Sector Banks

Private sector banks are owned and managed by private individuals or companies.
Examples include HDFC Bank, ICICI Bank, and Axis Bank. These banks are known
for their customer-centric approach, innovation, and efficient service delivery. They
typically offer better interest rates and advanced technological features like mobile
banking, internet banking, and seamless online transactions. Private banks focus on
profitability, often catering to urban and higher-income customers. They are known
for their competitive products, faster service, and quick adoption of technology,
making them a popular choice for customers seeking modern banking solutions.

Regional Rural Banks (RRBs)

Regional Rural Banks (RRBs) are government-backed institutions that operate in rural
and semi-urban areas with the primary goal of promoting financial inclusion in less-
developed regions. They are jointly owned by the central government, state
governments, and sponsoring public sector banks. RRBs cater to the financial needs of
small farmers, artisans, and rural businesses by providing services like savings
accounts, agricultural loans, and microcredit. These banks play a vital role in rural
development by offering credit at lower interest rates and helping marginalized
communities access banking services, thereby boosting the rural economy.

Cooperative Banks

Cooperative banks are financial institutions that operate on a cooperative model,

where the customers are also the owners. These banks are typically set up to meet the
banking needs of local communities, particularly in rural and semi-urban areas. They
provide services such as savings accounts, loans, and financial support to farmers,
small businesses, and local organizations. Cooperative banks are regulated by the
Reserve Bank of India (RBI) and the respective state government. They operate on the
principle of mutual help, offering affordable banking services to their members and
playing a crucial role in promoting financial inclusion at the grassroots level.

5. Comparison of Rate of Interest

As of the latest rates (subject to change), the comparison of interest rates for different
accounts from three prominent Indian banks is:

1. Savings Account

Bank Name Interest (per Interest (per

annum)(General) annum)(Senior)
SBI Bank 2.70% 2.70%
HDFC Bank 3.00% - 3.50% 3.00% - 3.50%
ICICI Bank 3.00% - 3.50% 3.00% - 3.50%

2. Fixed Deposit Account (1 Year)

Bank Name Interest (per Interest (per

annum)(General) annum)(Senior)
SBI Bank 6.10% 6.60%
HDFC Bank 6.60% 7.10%
ICICI Bank 6.50% 7.00%

3. Recurring Deposit (1 Year)

Bank Name Interest (per Interest (per

annum)(General) annum)(Senior)
SBI Bank 6.10% 6.60%
HDFC Bank 6.60% 7.10%
ICICI Bank 6.50% 7.00%

6. Report/Conclusion
From the comparison of the interest rates offered by State Bank of India (SBI),
HDFC Bank, and ICICI Bank, a few key observations can be made. The analysis
highlights distinct differences in interest rates across various account types and
reflects each bank's unique strengths in the Indian banking landscape.

Conclusion:

In conclusion, HDFC Bank is the best option for customers prioritizing higher
interest rates on fixed and recurring deposits, especially for short-term savings and
investments. SBI, while offering lower rates, remains a highly reliable and accessible
bank for the general public, particularly in rural areas and among those seeking
security over returns. ICICI Bank provides a balance between competitive interest
rates and excellent customer service, appealing to a wide range of customers across
urban and semi-urban areas. Each bank has its strengths, allowing customers to choose
based on their individual needs, preferences, and financial goals.

Banks SBI Bank HDFC Bank ICICI Bank

Fixed Deposit 3.50% - 7.00% 3.50% - 7.75% 3.00% - 6.90%

3.50% - 7.75% - 3.50% - 7.50%

Recurring 5.75% - 7.00% 6.00% - 7.75% 6.00% - 7.75%
Deposit
7.00% - 7.75% 5.25% - 7.75%
Savings 3.00% - 3.50% 3.00% - 3.50% 3.00% - 3.50%

Current NIL NIL NIL

7. Bibliography
The data on bank interest rates can be gathered from:

 Official websites of banks like SBI (sbi.co.in), HDFC Bank

(hdfcbank.com), ICICI Bank (icicibank.com)
 Reserve Bank of India publications and financial reports.
 Relevant financial news portals such as Moneycontrol or Economic
Times for interest rate updates.
TOPIC 2 : Planning a Home-Budget

1. Introduction

A home budget is an essential tool for managing a family's financial resources

effectively. It involves tracking income, categorizing expenditures, and ensuring
a portion of earnings is allocated to savings. By creating a balanced budget,
families can meet their current needs, such as food, housing, utilities, and
education, while also setting aside funds for future goals like savings,
investments, or emergencies.

This project examines the budgeting process of a family of three, consisting of a

father, mother, and one child. Through careful analysis of income and
expenditure, the project showcases how the family allocates resources to cover
necessities while maintaining financial discipline. The savings component
highlights their commitment to future financial security, whether for
emergencies, education, or long-term investments.

Through data and graphical representation, this project emphasizes the

significance of structured financial planning in achieving stability and ensuring
long-term financial well-being. A well-organized budget allows families to
balance present needs with future aspirations.
2. Monthly Income of Family

Income represents the total earnings generated by all working members of a

household. It includes both primary sources, such as salaries or wages, and
secondary sources like rental income, dividends from investments, or other
forms of passive income. Properly understanding and managing income is the
foundation of effective budgeting, as it determines how much the family has
available to spend, save, and invest.

In this project, the family’s monthly income is derived from two primary
sources: the father’s salary, the mother’s salary, and an additional rental income
from a property they own.

 Father’s Salary: ₹60,000 per month, representing the bulk of the

family’s income.
 Mother’s Salary: ₹30,000 per month, contributing significantly to
household needs.
 Rental Income: ₹10,000 per month, which serves as a supplementary
source of income.

Total Monthly Income: ₹1,00,000

This combined income is allocated toward covering various household

necessities, including rent, groceries, transportation, and utilities, as well as
discretionary spending and savings. The availability of multiple income sources
ensures that the family can maintain a comfortable lifestyle while also setting
aside a portion of their income for future goals, such as investments,
emergencies, or their child’s education. Effective management of this income
allows the family to meet their present financial needs without compromising
long-term financial security.
3. Monthly Expenditure of Family

Expenditure refers to the total amount spent on essential goods and services
required for the family's daily life. It includes necessary expenses such as food,
housing, education, healthcare, and more. Managing expenditure effectively
ensures that a family can meet its basic needs while saving for future goals.

For this family of three, the monthly expenditure breakdown is as follows:

 Groceries and Food: “₹20,000” is allocated for purchasing groceries and

food items, ensuring that the family has adequate nutrition throughout the
month.
 Rent: “₹20,000” goes towards housing, providing a safe and secure living
space for the family.
 Education: “₹10,000” is spent on the child's school fees and related
educational expenses like books and supplies.
 Utilities: “₹5,000” covers essential services like electricity, water, and
internet, which are necessary for maintaining a comfortable household.
 Transportation: “₹6,000” is set aside for daily commuting expenses,
including fuel, public transport, or vehicle maintenance.
 Healthcare: “₹3,000” ensures access to medical care, covering doctor
visits, medicines, and health-related costs.
 Entertainment and Leisure: ₹4,000 is reserved for recreational activities,
allowing the family to enjoy some entertainment and leisure.
 Miscellaneous: “₹2,000” is kept for unexpected or irregular expenses that
may arise during the month.

The total monthly expenditure amounts to ₹70,000. This allocation covers all of
the family's essential living expenses, while the remaining ₹30,000 from their
income can be saved for future investments, emergencies, or financial goals. By
managing these expenses effectively, the family ensures a balanced approach to
both their present needs and long-term financial security.
4. Family Size

The size of a family significantly influences the home budget. In this case, the family consists
of three members:

 Father
 Mother
 One Child

A smaller family may have reduced expenditures in certain areas, such as food and education,
compared to a larger family. However, even with fewer family members, it’s crucial to
manage finances effectively to balance current needs with future aspirations, like the child's
higher education, vacations, or medical emergencies.

5. Savings

Savings play a critical role in maintaining financial security. After covering all essential
expenses, the remaining income should be saved for future goals, such as buying a home,
funding the child's higher education, or creating an emergency fund.

Formula for Savings:

Savings=Income−Expenditure\text{Savings} = \text{Income} - \
text{Expenditure}Savings=Income−Expenditure

In this case:

 Total Income: ₹1,00,000

 Total Expenditure: ₹70,000

Savings per Month: ₹1,00,000 - ₹70,000 = ₹30,000

The family saves ₹30,000 each month. These savings can be allocated to different goals, such
as:

 Emergency Fund
 Investments (Fixed Deposits, Mutual Funds)
 Future Goals (Child’s Education, Family Trips, etc.)

Setting aside a portion of income regularly helps the family prepare for unforeseen events and
ensures long-term financial stability.
6. Bar Graph

To better understand the family's financial distribution, the following bar graph represents the
income, expenditure, and savings:

This graph highlights how ₹1,00,000 of total income is distributed, with ₹70,000 spent on
various household expenses and ₹30,000 saved for future needs. This graphical approach
allows easy visualization of how the family allocates its resources.

7. Conclusion

A home budget is essential for maintaining a balanced financial life. In this project, the
family’s monthly budget shows that proper planning helps meet immediate needs while
leaving room for future investments and savings. By saving ₹30,000 each month, the family
ensures financial security for emergencies and future endeavors, such as their child's
education or home renovations. Careful financial planning ensures a stable, happy, and
worry-free life, allowing the family to achieve their goals without stress.

8. Bibliography

 Textbook: Financial Management for Households

 Website: Reserve Bank of India
 Tools Used: Microsoft Excel, Google Sheets for budgeting and graph creation