Money9 India”s Pulse Personal Finance Survey. Know how India saves. (Photo credit: Money9)
New Delhi: In India, savings are given primary importance since they are considered a means to secure the family’s future. However, what happens to savings when inflation is at its peak? ‘India’s Pocket Survey’ is back with answers to these questions. Money9‘s latest survey revealed that the India’s family savings increased this year compared to last year. While 70 per cent of families used to save in 2022, this number rose to 88 per cent in 2023.
Savings on the rise
COVID-19 is the main reason behind the rise in family savings. The pandemic’s impact was visible on individual earnings as people realised during this period that they had no savings for the future. Individuals decided to take a leaf from COVID-19 learnings to start saving more after the pandemic ended.
While the number of family savings have increased, there has also been a change in the saving patterns among Indians. One of the reasons behind this rise in savings is the higher interest received on deposits. Another reason could be the Reserve Bank of India May 2023 decision to withdraw Rs 2000 currency notes from circulation. This led individuals to deposit large sums of money kept at home in their banks.
Awareness around insurance
An encouraging learning from the survey was that families are now buying more insurance after the COVID-19 pandemic. The survey revealed that 27 per cent families expressed confidence in insurance in 2023, compared to just 19 per cent families buying insurance in the year-ago period.
More and more families are investing in post office savings schemes with the number rising to 31 per cent in 2023 from 21 per cent in 2022. The security of a post office savings scheme and a lucrative interest rate have driven families toward these fixed income schemes.
The appetite of Indian families towards gold has also grown with those investing in the yellow metal rising to 21 per cent from 15 per cent in the year-ago period.
This survey was carried out by the reputed global agency RTI International which has in the past conducted surveys for institutions such as the World Bank.
In India, a survey of this scale is conducted by either the Reserve Bank of India or the National Sample Survey of Office. However, their most recent surveys are date in comparison much to the Money9 survey which provides the most accurate information about the economic health of Indians.
