Many of us decide to save more money. We start with good intentions but as the year progresses, that intention seems slipping away. Rising expenses, unexpected needs and the market uncertainty often push these savings to the back seat.
In recent years, personal finance conversations have leaned heavily towards investing and chasing higher returns. While investing does play an important role for the long-term, 2025 served as a reminder that savings remain to be the backbone. Traditional savings methods may not seem that exciting, but what they provide is crucial- stability. And that’s something many Indian households value even more during uncertain times.
As we enter the New Year, it may be a good time to look again at some simple ways to saving.
Old is gold!
Saving behaviour of India’s household already reflects this shift. As per Household Financial Savings Data from the RBI, bank deposits and small savings schemes continue to account for a significant portion of household financial savings, especially during periods of volatility. This trend strengthened in FY25 as households prioritised capital protection and liquidity amid global economic uncertainty.
Savings accounts and fixed deposits (FDs) remain popular because they are easy to understand. You know where your money is and how much you will get. When inflation stayed relatively low in parts of 2025, households also found it easier to plan their spending. RBI’s decision to keep interest rates steady after earlier changes surely adds to this sense of savings.
Save for the long term
Savings also play a very important role when life throws surprises. Medical bills, job changes or family emergencies can put pressure on finances at any time. That is why experts often suggest keeping some money aside that you can access quickly.
Savings accounts and short-term FDs help here because you can withdraw money easily when needed. The RBI’s Financial Stability Reports June 2025 have pointed out that households with enough savings are better able to handle sudden financial stress. In simple terms, savings do act as a safety net.
For expenses that are planned and time-bound (such as education fees, major purchases, or near-term milestones), fixed deposits help separate essential money from long-term investments. This separation reduces the temptation to dip into investments prematurely during market swings.
Government-backed savings schemes also continue to play an important role. Options like the Public Provident Fund (PPF) and National Savings Certificates (NSC) remain popular because the government backs them. According to the Ministry of Finance, interest rates on these schemes have stayed reasonably attractive in recent quarters. Once you start them, you don’t have to track them closely. Over time, small and steady contributions will grow into a meaningful amount, especially for salaried people who prefer simple and predictable savings options.
What about safety and long-term planning?
Most Indians now understand that savings alone may not be enough for very long-term goals. Traditional savings options protect money, but they may not always beat inflation. This is why people are trying to balance safety with long-term planning.
Options that encourage disciplined saving and also offer long-term protection, like HDFC Life Sanchay Plus, are often considered as part of a broader financial plan.
Here are some of its benefits:
· Life cover to protect the family's future.
· Guaranteed benefit payouts.
· Guaranteed income for a fixed term of 10, 12, 25, 30 years or lifelong.
Saving smarter in the New Year
As the New Year begins, financial uncertainty is likely to continue. Markets will move. Interest rates will change. New trends will come and go. But traditional savings options will continue to offer peace of mind.
A good savings strategy means using savings for safety and short-term needs, while planning carefully for the long term. While earning returns is important, feeling financially secure matters just as much.