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● More than 2 out of 5 respondents prioritize savings, with 65% actively saving across income groups
● Respondents with higher income levels exhibit a stronger inclination towards savings, with 72% of those earning above 50K actively saving compared to 51% of those earning less than 30K
● Tier 1 cities and the age group 31-45 demonstrate the highest savings rates at 72%, while Tier 3 cities and the 45+ age group show lower rates at 39% and 56%, respectively
New Delhi, 19th June 2024: The Moneyview Savings Index 2024, which was conducted during the financial year ended March 2024, revealed 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. The digital fintech platform has studied the savings behavior and financial preferences of Indian respondents in Tier-1, Tier-2, and Tier-3 cities during the last financial year*
The comprehensive survey, conducted across diverse demographics, provides valuable insights into savings habits, goals, and factors influencing financial decisions among Respondents having monthly incomes ranging between Rs 30,000 to Rs 50,000 and more than Rs 50,000 a month.
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.”
According to the survey conducted on 5,000 respondents each across Tier 1, 2, and 3 cities with various income and age groups, a significant trend towards savings has emerged. The survey has revealed some interesting savings patterns among respondents in these cities. For example, respondents in Tier-2 cities have shown maximum interest in savings compared to those in other cities. As much as 83% of the surveyed respondents in Tier-2 cities are saving every month.
Another 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.
Here are the key findings:
● Savings Inclination: More than 2 out of 5 Respondents prioritize savings, indicating a growing awareness of financial stability
● 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
● Age Disparities: People above 30 years tend to save almost 25% of their income while those below 30 years save only 10-15%
● Share of wallet: Almost 50% of the total salary of people earning below INR 25000 goes towards their household expenses, 25% towards EMIs, and 10% towards savings and investments with limited disposable income at hand; Respondents earning above INR 25000 spend 35% of their salary towards household expenses and 15% towards EMIs and contribute at least 25-35% towards their investments/savings
● Saving Goals: A significant 75% of respondents have specific saving goals, with varied timelines. Around 3 out of 10 respondents have no specific timeline
● 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
● 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
● Saving Frequency: A notable 63% of respondents save monthly, indicating a disciplined approach to financial planning
* The study was conducted in partnership with a third-party agency
