India's young aren't splurging: 87% would save or invest a windfall

Mutual funds and bank FDs emerge as the most preferred investment choices, while 87% say they would save, invest or repay debt with an unexpected windfall

Saving remains a strong habit among urban Indian households, with 83% of adults surveyed saying they currently save or invest. The shift is increasingly towards digital channels: 80% of those who save or invest use one or more digital platforms to manage their money, according to a survey commissioned by Stable Money and conducted by YouGov. 

The report, How India Saves 2026, found that another 13% of savers plan to start using digital platforms, taking the share of those already using or intending to use them to 93%. The findings point to the growing role of technology in how households access and manage financial products, even as traditional instruments such as bank fixed deposits (FDs) retain their appeal.

 

 

The survey comes against an uncertain economic backdrop, with the Reserve Bank of India projecting consumer price inflation at 5.2% for FY27. For households, the findings suggest that saving and investing remain priorities, with respondents showing a preference for balancing growth-oriented products with instruments perceived as more predictable. 

The survey highlights a few key findings:

• 80% of Indian savers use digital platforms to save or invest, while 65% began saving by the age of 30.
• Women are taking charge of household finances, with 46% of women surveyed saying they primarily make household financial decisions themselves, while 29% make these decisions jointly with their spouse or partner.
• Gen Z is prioritising homeownership, with 26% identifying buying a home as their primary financial goal, while 35% of Gen X prioritise retirement.
• 87% of respondents would use unexpected money to save, invest or clear debt, pointing to a strong preference for putting surplus funds to work.
• Bond investing is gaining traction beyond metros, with 46% of respondents in Tier-2 cities investing in bonds, compared with 45% in Tier-1 cities. Additionally, 41% of respondents already invest in bonds, while another 45% are interested.

 

Saving begins early, women take a greater role in decisions

 

The habit of saving appears to take root relatively early. Among respondents who save or invest, 39% said they started between the ages of 18 and 25, while another 26% began between 26 and 30. This means 65% started saving or investing by the age of 30. The share rises to 82% by the age of 35.

 

The survey also points to a substantial role for women in household financial decision-making. Overall, 56% of respondents said they primarily make household financial decisions themselves, while 23% said they take these decisions jointly with their spouse or partner. Only 11% said their spouse or partner primarily makes these decisions, while an equal share relies primarily on a financial advisor or professional.

 

Among women respondents, 46% said they make household financial decisions themselves and another 29% said they decide jointly with their spouse or partner.

 

Greater access to financial information and digital platforms may be making it easier for individuals to compare products and take a more active role in managing household finances. However, the survey captures respondents' stated behaviour and does not establish what is driving the shift.

 

Mutual funds and FDs compete for the top spot

 

Mutual funds and bank FDs and recurring deposits (RDs) are the two most preferred investment categories in the survey, with a narrow gap between them.

 

Mutual funds were named as the first choice by 23% of respondents, compared with 21% for bank FDs and RDs. Gold and silver followed at 14%, equities at 12%, and insurance or savings plans at 10%.

 

When respondents were asked to rank their top three products, mutual funds featured in 57% of responses and bank FDs and RDs in 56%. Gold and silver came next at 45%, followed by insurance and savings plans at 39% and equities at 36%.

 

The results indicate that savers are not necessarily choosing between safety and growth-oriented investments. Both categories feature prominently in their stated preferences.

 

Within fixed-income products, bank FDs and RDs have a clear lead. They appeared in the top three for 56% of respondents, compared with 20% for the Public Provident Fund (PPF), 19% for government bonds and 7% for corporate bonds. FDs and RDs were the first choice for 21% of respondents, against 6% each for PPF and government bonds and 2% for corporate bonds.

 

The relatively low preference for bonds, despite considerable stated interest, is another finding. While 41% of respondents said they already invest in bonds, another 45% said they were interested. Yet government bonds featured in the top three for 19%, while corporate bonds did so for only 7%. Just 2% named corporate bonds as their first choice.

 

Gen Z prioritises home ownership; Gen X focuses on retirement

 

Financial goals differ across generations. Buying a home is the most frequently cited primary financial goal among Gen Z respondents, with 26% identifying it as their priority. Building an emergency fund came next at 18.7%, followed by travel and holidays at 15.7% and retirement at 15.2%.

 

For Gen X, retirement is the leading priority, cited by 35.4% of respondents in that generation. The survey also found that retirement becomes increasingly prominent among older respondents, with 50.3% of Baby Boomers naming it as their primary financial goal.

 

The findings highlight how financial priorities evolve with age and life stage, from saving towards a first home and building a financial cushion to preparing for retirement.

 

87% would save, invest or repay debt with an unexpected windfall

 

Respondents also showed a preference for putting unexpected money to work rather than spending it.

 

Asked what they would do first with an unexpected lump sum, 32% said they would invest in higher-growth options such as equities or mutual funds, while 25% would choose a fixed-income product. Another 19% would put the money in a bank savings account and 11% would use it to reduce debt.

 

Together, 87% said they would invest, save or repay debt. Only 13% said they would spend the money, with 8% choosing travel or an experience and 5% opting for a luxury purchase.

 

The responses suggest that respondents place considerable importance on strengthening their financial position, although stated intentions in a survey may not always translate into actual behaviour when a windfall arrives.

 

Tier-2 cities match metros on bond investing

 

Bond investing is not limited to larger urban centres. The survey found that 46% of respondents in Tier-2 cities said they invest in bonds, marginally higher than the 45% recorded in Tier-1 cities.

 

Across the full sample, 41% said they already invest in bonds and 45% expressed interest. However, 14% said they were still getting to know what bonds are.

 

The gap between interest and product preference suggests that awareness and understanding may remain important barriers to wider participation. While government bonds featured in the top three for 19% of respondents, corporate bonds were included by only 7%.

 

"Indians have always been savers, and that habit is intact. Today it lives on the phone," said Saurabh Jain, co-founder of Stable Money. He said the survey found that 93% of respondents either already use a digital platform or plan to, while 65% began saving by the age of 30.

 

About the survey

 

Stable Money commissioned YouGov to survey 1,212 urban Indian adults between October 13 and 16, 2026, across more than 150 cities and towns. Of these, 1,003 respondents said they currently save or invest and answered questions about their savings and investment behaviour.

 

The findings were weighted by gender, age and geography and are representative of urban Indian adults aged 18 and above. They reflect stated attitudes and behaviour and should not be interpreted as a measure of actual investment allocations