Fixed deposit losing appeal from young investors

Finance minister Nirmala Sitharaman nudged state-run banks to step up deposit mobilisation and conduct special drives so that it can keep pace with the growth in loans. Data by SBI Research suggesting that bank deposits, traditionally favoured for their safety and liquidity, are losing their appeal among younger investors.

While deposits remain a secure investment option, their post-tax returns are falling short compared to riskier assets like mutual funds and equities.

Nearly 47% of term deposits are now held by senior citizens, the report showed, indicating that the younger population is shifting away from conventional banking avenues. In contrast, the median age of investors in capital markets has dropped to 32 years, with approximately 40% of these investors being under 30.