SHG is an important concept for socio-economic development in rural areas. In India, SHGs were formulated in 1989 due to success in Bangladesh. In Tamil Nadu, the first SHG was formed in 1989 and now there are over 450,000 SHGs. The objective of the study is to analyze savings performance of SHGs in Namakkal district. Savings of SHGs were over Rs. 67 crore in 2009. Savings performance is an important indicator of a SHG's ability to access loans. Proper savings can help SHGs to effectively serve their members.