Household savings shift from bank FDs to mutual funds: Report

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.

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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.