In numbers: How savings habits are shifting

As younger investors flock to markets, bank deposits are slowly losing their traditional dominance

Mar 25, 2026, 14:39 IST1 min

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Indian households are gradually realigning their financial portfolios, with mutual funds gaining ground at the expense of traditional savings instruments. Share of mutual funds in household financial assets rose from 8.5 percent in the quarter of March 2023 to 11.7 percent in March 2025, bank deposits declined to 43.4 percent over the same period. Currency holdings and non-bank deposits also contracted, signalling a broader move toward market-linked instruments.

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The shift is largely driven by younger investors. Those aged between 20 and 39 account for 81 percent of mutual fund and direct equity investors in FY25, reflecting growing financial awareness among millennials and Gen Z.

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This demographic tilt is also visible in deposit trends. The share of 18- to 25-year-olds in total bank deposits has fallen, as has the share of 25- to 59-year-olds. Meanwhile, the share of deposits by senior citizens has risen.

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A similar pattern holds among women depositors as well.

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This, as total deposits continue to grow, rising to 32 percent from Rs94.7 lakh crore in March 2023 to Rs124.7 lakh crore in the December 2025-ended quarter.

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Maharashtra, Delhi and Karnataka collectively account for a dominant share.