RBI: Share in total deposits of banks increased to 60.3%, due to rising interest rates people are showing interest in fixed deposits

Due to rising interest rates, people are now investing more money in term savings schemes i.e. term deposits. According to RBI data, the share of this instrument in total bank deposits increased to 60.3% in December. In March it was 57.2%. Fixed deposits account for around 97.6 per cent of total deposits during April-December 2023.

According to RBI, the shares of current account and savings account (CASA) deposits have declined. During this period, customers are investing in high-interest instruments. More than 7% interest is being received on such instruments. The share of term deposits with interest above 7% was 61.4% of the total term deposits in December 2023. This share was 54.7% a quarter ago and 33.7% in March.

RBI has increased the interest rates reduced during Corona by 2.5% to 6.50% from May 2022 to February 2023. The share of senior citizens in the total deposits has been 20.1%.

Women customers have made a significant contribution to the deposits of banks. Their share in CASA, fixed and total deposits during October-December was 63.4 per cent, 36.1 per cent and 40.1 per cent respectively. The share of women in total deposits was 20.6% in the December 2023 quarter, which was 20.2% in the same quarter a year ago.