Bank deposits grow 11.3% in June 2025, term deposits outpace savings at 13.5% growth

Bank deposits with scheduled commercial banks (SCBs) registered a growth (y-o-y) of 11.3% as of June 2025-end as compared with that of 11.7% (net of merger) a year ago, according to the RBI data on scheduled commercial banks as of June 2025. In terms of composition, the current deposits comprised 9.5%, while savings deposits stood at 28.3% and term deposits made up the largest share at 62.2%. The data for the past year shows term deposits have remained dominant, which reflects the investors' interest for fixed return assets.

Term deposits recorded a growth (y-o-y) of 13.5%, significantly outpacing the savings deposits growth of 5.4% in June 2025; consequently, the share of term deposits in total deposits soared to 62.2% from 61% in June 2024.

Nearly 70% of term deposits accounted for original maturity bucket of one to three years in June 2025, whereas around 20% of term deposits were short-term deposits with a maturity of less than one year.

The reflection of recent monetary easing became evident in the interest rate structure of term deposits as the proportion of such deposits bearing higher interest rates of ‘7% and above’ declined to 65% in June 2025 as compared to that of 66.9% a year ago.

The share of term deposits of size ‘Rs 1 crore and above’ inched up to 45.7% in June 2025 as compared to 44.8% a year ago.

The share of ‘household’ deposits witnessed modest decline in recent period to 59.9% in June 2025 as compared to that of 60.8% in June 2024; the corresponding share of ‘financial corporations’ moved up to 7% in June 2025 as compared to that of 6% a year ago.

Senior citizens owned 20.4% of the total deposits as of the end of June 2025. The year-over-year (y-o-y) growth in deposits of public sector banks and private sector banks stood at 10.2% and 12.4%, respectively, in June 2025; whereas their corresponding shares in deposits were hovering at 57.3% and 36%, respectively. The top five states/ UTs (viz. Maharashtra, NCT of Delhi, Karnataka, Uttar Pradesh, and Tamil Nadu) collectively accounted for 54.3% of total deposits and 47.8% of ‘household’ deposits as at end-June 2025.