Monday, February, 10,2025

Latest News

Households savings shift from bank FDs to mutual funds, insurance in last 3 years: SBI Report

New Delhi: The savings pattern of Indian households has been undergoing a significant shift over the past three years, with funds increasingly moving from traditional bank deposits to mutual funds and life insurance, according to an SBI report.
The report highlighted that the share of household savings in bank deposits, which stood at 47.6 per cent in 2021, has dropped to 45.2 per cent in 2023.
Meanwhile, household investments in life insurance funds have seen an uptick, rising from 20.8 per cent in 2021 to 21.5 per cent in 2023. The share of mutual funds in household savings has also increased, climbing from 7.6 per cent in 2021 to 8.4 per cent during the same period.
It said "Among financial savings, the share of bank deposits/currency is declining as new avenues of investment are emerging (like mutual fund, etc.)"
The report also highlighted trends in net financial savings, noting a significant rise in their share of total household savings from 36 per cent in FY14 to around 52 per cent in FY21.
However, this share saw a slowdown in FY22 and FY23. Interestingly, FY24 trends suggest a decline in the share of physical savings, indicating a renewed focus on financial assets.
The report also added that India's overall savings rate remains robust, standing at 30.2 per cent, which is higher than the global average of 28.2 per cent. This reflects a strong culture of savings in the country, supported by an improving financial inclusion landscape.
It said "India's Savings Rate is higher than the global average"
Due to various policy measures, financial inclusion in India has significantly improved over the years. Currently, over 80 per cent of Indian adults have a formal financial account, compared to approximately 50 per cent in 2011.
The report stated that this has played a crucial role in enhancing the financialization of household savings, offering households more diverse and potentially rewarding investment opportunities.
The shift from traditional to modern savings avenues indicates a growing awareness among Indian households about optimizing their financial resources for better returns.

  Share on

Related News

visit e-papers

Daily Astro

image

Aries

Today brings opportunities for growth, but you'll need to stay focused. Trust your instincts to navigate challenges.

image

Pisces

Your intuition will guide you. Trust your feelings and explore creative outlets for peace of mind.

image

Aquarius

Innovation is your theme today. Explore unconventional ideas to solve lingering problems.

image

Capricorn

Hard work pays off today. Your dedication and discipline will lead to well-deserved recognition.

image

Sagittarius

Adventure is calling! Embrace new opportunities, but keep a balanced approach to risks.

image

Scorpio

Your determination will be unmatched. Dive deep into tasks, but don't forget to take breaks to recharge.

image

Libra

Harmony in relationships is your priority. Compromise and understanding will strengthen your bonds.

image

Virgo

Focus on organization and details. A well-planned day will lead to productive results and personal satisfaction.

image

Leo

Leadership will come naturally. Take charge of situations but remain humble for the best outcomes.

image

Cancer

Emotional balance is key today. Spend quality time with loved ones to find comfort and clarity.

image

Gemini

Today is perfect for networking and sharing ideas. Your adaptability will help you tackle unexpected changes with ease.

image

Taurus

Patience will be your strength today. Financial matters might need attention, so think twice before making big decisions.