The Moneyview Savings Index 2024, which was conducted during the financial year ended March 2024, showed that 72% of the respondents earning over Rs 50,000 monthly salary have higher savings compared to just 51% of those earning less than that. It stated lower-income groups often opt for safer options like savings accounts even though interest in mutual funds and equity markets is increasing. Respondents with higher incomes prefer bank FDs, insurance (as a secure mode), and mutual funds.
The digital fintech platform conducted the survey to study the savings behavior and financial preferences of Indians in Tier-1, Tier-2, and Tier-3 cities during the last financial year. The respondents studied had monthly incomes ranging between Rs 30,000 to Rs 50,000 and more than Rs 50,000 a month.
“An interesting trend witnessed during the study was about safer investment instruments used by respondents with lower incomes. Lower-income groups often opt for safer options like savings accounts even though interest in mutual funds and equity markets is increasing. Respondents with higher incomes prefer bank FDs, insurance (as a secure mode), and mutual funds,” the survey stated.
Other highlights of the survey:
1. Savings Inclination: More than 2 out of 5 Respondents prioritise savings, indicating a growing awareness of financial stability.
2. Income Group Variation: Respondents with higher income levels exhibit a stronger inclination towards savings. Notably, 72% of respondents with incomes above 50K are actively saving, compared to 51% of those earning less than 30K.
3. Age Disparities: People above 30years tend to save almost 25% of their income while those below 30 years save only 10-15%.
4. Share of wallet: Almost 50% of the total salary of people earning below Rs 25,000 goes towards their household expenses, 25% towards EMIs and 10% towards savings and investments with limited disposable income at hand; Respondents earning above Rs 25,000 spend 35% of their salary towards household expenses and 15% towards EMIs and contribute at least 25-35% towards their investments/savings.
5. Saving Goals: A significant 75% of respondents have specific saving goals, with varied timelines. Around3 out of 10 respondents have no specific timeline
6. Purpose of Savings: The survey reflects diverse purposes for savings, with future property acquisition ranking highest at 21%, followed by education and emergency funds at 17% followed by marriage expenses and child education.
7. Investment Preferences: When it comes to cash savings, lower-income groups often opt for savings in their bank accounts while higher-income groups prefer FDs.
8. Saving Frequency: A notable 63% of respondents save monthly, indicating a disciplined approach to financial planning.
“The findings underscore the importance of savings in achieving financial security and realizing personal aspirations. As we observe diverse saving behaviors across income groups and demographics, it’s evident that tailored financial solutions are essential to meet the evolving needs of the consumers,” said Prasanth Naidu, Chief Marketing Officer, Moneyview.