Savings bank deposits drop while FDs increase in banks

Bank savings deposits decreased by ₹54,021.77 crore, while FDs increased by ₹1,16,218.25 crore.

Even as loan growth accelerates, banks are observing a shift in deposits from savings accounts to fixed deposits.

All scheduled banks reported total deposit accretion of ₹62,196.47 crore for the reporting fortnight that ended on September 9, 2022. This increase is most likely attributable to depositors shifting funds from savings accounts to fixed deposits (FDs) and the formation of new FDs.


According to the most recent data from the RBI, saving bank deposits at banks decreased by ₹54,021.77 crore over the course of a fortnight while FDs increased by ₹1,16,218.25 crore.

This occurs as banks raise interest rates against the backdrop of the steady drying up of systemic liquidity, while FDs are yielding relatively greater returns.

The expansion of incremental credit kept outpacing the rise of deposits. In contrast to deposit increase of ₹62,196.47 crore, banks reported credit growth of ₹95,751.7 crore in the reporting week.