As opposite to popular belief, Bank deposits, in spite of their safety features are quickly losing their appeal among Indians. It is being seen that over the last three years, Indians are favouring to save in long-term insurance products and government-backed savings products.
The fiscal year 2010-11 saw a sharp drop in bank deposits accounted from 53% in 2008-2009 to 42% as per the data released by the RBI last week. Efficaciously, out of every Rs. 100 saved, Indians are setting aside Rs. 42 for bank deposits as compared to Rs. 53 3 years ago.
People are investing in life insurance policies and government-backed savings products like post-office savings and national savings certificates. These products offer approximately 8% return as compared to 4% in saving accounts.
Financial experts assign this changing savings pattern to aggressive marketing by insurers, increasing financial literacy and looking for of better investment yields.
The fiscal year 2010-11 saw a sharp drop in bank deposits accounted from 53% in 2008-2009 to 42% as per the data released by the RBI last week. Efficaciously, out of every Rs. 100 saved, Indians are setting aside Rs. 42 for bank deposits as compared to Rs. 53 3 years ago.
People are investing in life insurance policies and government-backed savings products like post-office savings and national savings certificates. These products offer approximately 8% return as compared to 4% in saving accounts.
Financial experts assign this changing savings pattern to aggressive marketing by insurers, increasing financial literacy and looking for of better investment yields.
No comments:
Post a Comment