Why more families are saving now?

Savings are given the utmost importance to secure the future of the family. But how will there be savings when inflation is at its peak? Money9’s latest survey — India’s Pulse Personal Finance Survey–has revealed that the number of families saving has increased this year as compared to last year. According to the 2022 survey, while 70 percent of the families used to save, in 2023 the number of saving families has increased to 88 percent.

Corona is also the main reason for increase in savings in families. The effect of Corona was visible on people’s earnings. After Corona, people realised that they had no savings for the future. Therefore, as soon as the effect of Corona waned, people have started increasing their savings.

On one hand, while the number of saving families has increased, there has also been a change in the saving patterns among Indians. This time’s data has revealed that the number of people keeping money in banks has increased from 64 percent to 77 percent from 2022. One reason for increase in savings in banks is the higher interest received on deposits. Apart from this, one reason for this could be a decision of the Reserve Bank taken this year. In May, the Reserve Bank withdrew the Rs 2,000 nore from circulation, which led to currency flowing back into banks.

One figure in the survey is really encouraging. This time the survey has revealed that families are now buying more insurance. This change has been seen after Corona. Last year, where 19 percent of the families bought insurance. The survey of 2023 revealed that 27 percent of the families have expressed confidence in insurance. Therefore, the number of insurance has been seen increasing rapidly.

A new trend in savings has been seen in the post office savings schemes. The number of families saving in small savings schemes of the post office has increased from 21 percent to 31 percent. An important reason for this is that small savings schemes are run from the post office. At the same time, interest is also good in these scheme. Apart from this, the number of families investing in gold has also increased from 15 percent to 21 percent.