Structural shift in bank deposits sees decline in savings deposits share and increase in term deposits
June 01, 2026
RBI data reveals a shift in bank deposits, with savings deposits declining and term deposits increasing significantly from 2022 to 2026.
The composition of scheduled commercial banks’ (SCBs) aggregate deposits has undergone a structural shift over the last five years, characterized by a decline in the share of savings deposits and increase in term deposits, according to RBI data.
This comes in the backdrop of savings deposit rates going down from 2.70/3.00 per cent in March 2022 to 2.50 per cent in March 2026 even as term deposit rates of more than one-year tenor rose from 5.00/5.60 per cent to 6.00/6.60 per cent in the said period.
The proportion of SCBs’ savings deposits declined from 34.6 per cent in March 2022 to 28.7 per cent in March 2026. In tandem, the proportion of term deposits, which usually attracts higher interest rates, ascended from 55.2 per cent to 61.6 per cent during the said period.
The proportion of term deposits in SCBs’ overall deposits increased to 61.6 per cent as at March-end 2026 from 61.1 per cent as at March-end 2025, .
Growth Acceleration
Simultaneously, the proportion of savings deposits and current account (CA) deposits in banks’ overall deposits declined to 28.7 per cent (from 29.1 per cent as at March-end 2025) and 9.7 per cent (9.8 per cent), respectively.
During the FY26, public sector banks acted as the predominant driver of deposits accretion, accounting for 50.8 per cent of the incremental deposits, followed by private sector banks with a contribution of 38.6 per cent, per RBI’s Annual Basic Statistical Return (BSR) on Deposits with SCBs.
Growth (year-on-year/yoy) of deposits with SCBs accelerated during FY26 and stood at 11.5 per cent as on end-March 2026 as compared to 10.6 per cent a year ago.
Household sector
The RBI noted that although the share of deposits of the household sector moderated in the recent period, it remained the primary contributor, accounting for 59.3 per cent of total deposits as on end-March 2026.
On the other hand, the share of deposits held by the non-financial sector increased to 18.5 per cent in March 2026 from 17.7 per cent in March 2025, while such share for financial corporations too moved in the same direction from 6.8 per cent to 7.8 per cent in the same period.
Deposits by size
The central bank said within the total term deposits, ‘₹1 crore and above’ size-class, accounting for 46.3 per cent of the total term deposits as of end-March 2026, was mainly driven by the contribution of size-class ‘₹5 crore and above’, which accounted for 34.8 per cent. Moreover, the share of term deposits up to ₹5 lakhs stood at 17.8 per cent.
The share of term deposits with an original maturity of one to three years rose steadily to 69.8 per cent in March 2026 from 50.4 per cent in March 2022, whereas the proportion of term deposits of maturity up to one year came down to 8.8 per cent from 16.7 per cent during the same period.
The share of term deposits with an original maturity of one to three years rose steadily to 69.8 per cent in March 2026 from 50.4 per cent in March 2022, whereas the proportion of term deposits of maturity up to one year came down to 8.8 per cent from 16.7 per cent during the same period.
Published on June 1, 2026
This comes in the backdrop of savings deposit rates going down from 2.70/3.00 per cent in March 2022 to 2.50 per cent in March 2026 even as term deposit rates of more than one-year tenor rose from 5.00/5.60 per cent to 6.00/6.60 per cent in the said period.
The proportion of SCBs’ savings deposits declined from 34.6 per cent in March 2022 to 28.7 per cent in March 2026. In tandem, the proportion of term deposits, which usually attracts higher interest rates, ascended from 55.2 per cent to 61.6 per cent during the said period.
The proportion of term deposits in SCBs’ overall deposits increased to 61.6 per cent as at March-end 2026 from 61.1 per cent as at March-end 2025, .
Growth Acceleration
Simultaneously, the proportion of savings deposits and current account (CA) deposits in banks’ overall deposits declined to 28.7 per cent (from 29.1 per cent as at March-end 2025) and 9.7 per cent (9.8 per cent), respectively.
During the FY26, public sector banks acted as the predominant driver of deposits accretion, accounting for 50.8 per cent of the incremental deposits, followed by private sector banks with a contribution of 38.6 per cent, per RBI’s Annual Basic Statistical Return (BSR) on Deposits with SCBs.
Growth (year-on-year/yoy) of deposits with SCBs accelerated during FY26 and stood at 11.5 per cent as on end-March 2026 as compared to 10.6 per cent a year ago.
Household sector
The RBI noted that although the share of deposits of the household sector moderated in the recent period, it remained the primary contributor, accounting for 59.3 per cent of total deposits as on end-March 2026.
On the other hand, the share of deposits held by the non-financial sector increased to 18.5 per cent in March 2026 from 17.7 per cent in March 2025, while such share for financial corporations too moved in the same direction from 6.8 per cent to 7.8 per cent in the same period.
Deposits by size
The central bank said within the total term deposits, ‘₹1 crore and above’ size-class, accounting for 46.3 per cent of the total term deposits as of end-March 2026, was mainly driven by the contribution of size-class ‘₹5 crore and above’, which accounted for 34.8 per cent. Moreover, the share of term deposits up to ₹5 lakhs stood at 17.8 per cent.
The share of term deposits with an original maturity of one to three years rose steadily to 69.8 per cent in March 2026 from 50.4 per cent in March 2022, whereas the proportion of term deposits of maturity up to one year came down to 8.8 per cent from 16.7 per cent during the same period.
The share of term deposits with an original maturity of one to three years rose steadily to 69.8 per cent in March 2026 from 50.4 per cent in March 2022, whereas the proportion of term deposits of maturity up to one year came down to 8.8 per cent from 16.7 per cent during the same period.
Published on June 1, 2026