Back25% savings rate common among those over 30 years old, reveals survey
Indians living in Tier-1, Tier-2, and Tier-3 cities were asked to participate in the Moneyview Savings Index 2024 survey to learn more about their financial preferences and savings habits during the previous fiscal year.
PremiumThe Moneyview Savings Index 2024 reveals current savings and investment patterns in contemporary India. According to the survey, individuals with higher incomes tend to save a larger proportion of their earnings than those with lower incomes.
Specifically, 72% of respondents earning over ₹50,000 per month reported higher savings, whereas only 51% of those earning less than this amount did so. This indicates that higher-income earners may have more disposable income after covering essential expenses, enabling them to allocate a greater share towards savings.
The survey sought to investigate how residents of Tier-1, Tier-2, and Tier-3 cities in India handle their finances. By concentrating on respondents earning ₹30,000 or more per month, the survey captured valuable insights from a substantial segment of the employed population.
By examining two distinct income brackets ( ₹30,000-50,000 and above ₹50,000), the survey facilitates comparisons of savings behaviors between individuals with moderate incomes and those with higher incomes.
Sharing the insights of the survey, Prasanth Naidu, Chief Marketing Officer, Moneyview, stated, “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."
The findings reveal that lower-income groups typically favour safer investment options such as savings accounts, despite an increasing interest in mutual funds and the stock market. This behaviour can be attributed to factors such as lower risk tolerance and a focus on short-term financial goals.
Respondents earning higher incomes show a preference for bank fixed deposits (FDs), insurance for its security, and mutual funds. This indicates that as financial literacy grows and individuals gain confidence in managing their finances, they may increasingly consider exploring investment avenues beyond conventional savings accounts.
Here are key findings from the Moneyview Savings Index 2024 survey:
- Saving priority: Over 40% of respondents view saving as a primary financial objective, reflecting an increasing awareness of financial security.
- Income and savings: Individuals earning over ₹50,000 monthly are more inclined to actively save compared to those earning less than ₹30,000.
- Age and savings: According to the survey, individuals aged 30 and above tend to allocate a larger portion of their income to savings (approximately 25%) compared to younger individuals (around 10-15%).
- Investment preferences: Despite a growing interest in mutual funds and the stock market, lower-income groups generally prefer safer options such as savings accounts.
- Regional distribution: The survey concentrated on Tier-1, Tier-2, and Tier-3 cities in India to examine variations in savings habits across different locations.
The overall trend of Indians becoming more focused on saving is encouraging, according to the Moneyview Savings Index 2024. Along with a growing willingness to investigate investment options outside of traditional savings accounts, it also finds a correlation between age, income level, and savings behaviour.
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