51% of women prefer low-risk FDs, only 7% invest in stocks: survey

Women earners in India's metros tend to be risk-averse with 51 per cent of their investments parked in fixed deposits (FD) and savings accounts, followed by 16 per cent in gold, 15 per cent in mutual funds, 10 per cent in real estate and just 7 per cent in stocks, revealed a joint study by DBS Bank India and rating agency Crisil. 

Over 800 women were surveyed across 10 cities in India on a wide range of behaviours, including their involvement in financial decision-making, goal setting, saving and investing patterns, adoption of digital tools as well as their preferences for different banking products.

DBS Bank India’s customer insights revealed that 10 per cent of female customers have an active fixed deposit, while just 5% of male customers have opened an FD.

The presence of dependents plays a major role in women’s investment behaviour. Specifically, 43 per cent of married women with dependents conservatively allocate 10-29% of their income to investing, while in contrast, a quarter of married women without dependents choose to invest over half of their income. 

Hyderabad and Mumbai lead the way in credit card usage, with 96% of women in Mumbai relying on credit cards, while only 63% of women in Kolkata use them. About 18% of working women do not use credit cards, citing trust issues and overspending as their top concerns. Difficulty in managing credit card payments, concerns about hidden fees and a higher preference for cash transactions are some of the other factors restricting credit card usage.

Only 14% of urban women opt for cash transactions. The remaining favour digital, with 29% preferring UPI, 16% mobile banking, 13% credit cards, and 11% net banking. In contrast, a slightly smaller percentage choose debit cards and digital wallets as their primary payment method.

Half of the salaried women stated that they had never taken a loan. Among those who have borrowed, the majority opted for a home loan.

Among salaried women, 55% cited having sufficient personal savings to meet their financial requirements or high interest rates and stiff repayment terms as the key reasons for not availing of a loan.

In terms of bank account ownership, urban women show an even preference for public sector and private banks. Kolkata, considered a key representative of East India, remains an exception, with 95% of women preferring public sector banks. The choice is linked to their longstanding trust in these institutions. Within South India, more than 40% of women in Coimbatore and Hyderabad prefer public sector banks, while less than 30% do so in Bengaluru and Chennai. Further, email, WhatsApp and SMS are the most preferred means of interacting with banks on a day-to-day basis for 75% of women.

While 33% of those in the 25-35 age bracket prefer to use UPI for online shopping, only 22% above 45 years use UPI.  The report showed that UPI stands out as the preferred choice for urban women for a variety of payment needs: money transfers (38%), utility bills (34%) and e-commerce purchases (29%), signalling decreasing dependency on cash. Although regional nuances were stark in some cases with only 2 per cent of women in Delhi opting for cash payments, while 43 per cent of women from Kolkata favoured this option.
 

The report further revealed that 98 per cent of salaried and self-employed Indian women actively participate in long-term family decision-making. The findings revealed that about 47% of them make independent financial decisions.

Age and affluence play a pivotal role in shaping these decisions. Women over 45 years old, with their wealth of experience, emerge as the leaders, with 65% making independent financial choices compared to 41% of those aged 25-35 years.

Across India, a woman’s primary long-term financial priority evolves with age. Buying/upgrading a home is priority number one for those between 25-35 years, while it evolves to children’s education for those in the 35-45 year category and to medical care for those above 45 years of age. Retirement planning is seen entering the consideration set for the first time in the 35-45 year age cohort.

"The insights from the survey highlight the importance of financial stability in the aspirations of independent female earners across India. Ownership of financial decision-making, diverse investment and borrowing choices and growing adoption of digital channels are all evidence that the modern Indian woman is not just a participant, but a planner of her journey," said Prashant Joshi, Managing Director and Head of Consumer Banking Group, DBS Bank India.