Bank deposits drop share, insurance and savings schemes increase share in household savings

This may appear contrary to popular belief, but it’s true. Bank deposits, despite their safety and ease of operations, seem to be fast losing their charm among Indian households as the best place to park money in. Over the past three years, households have increasingly preferred to save their growing disposable incomes in government-backed savings instruments and long-term insurance products, rather than in bank deposits. In 2010-11, bank deposits accounted for 42% of all household savings, a sharp drop from 53% in 2008-09, data released by the Reserve Bank of India (RBI) last week in its latest annual report showed

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