The percentage of households in Chennai that are financially at risk due to ineffective saving habits and misplaced financial optimism is very high, according to a recent study.
As much as 99.9 per cent of households in the city felt that they could not survive for more than one year on their current savings in case of loss of major source of household income, said the survey findings.
The study was jointly undertaken by the National Council of Applied Economic Research (NCAER) and Max New York Life Insurance Company Limited on ‘How financially protected are Indian households’ by assessing how India earns, spends and saves.
As per the survey findings pertaining to Chennai and rest of Tamil Nadu (RoT), 38 per cent households in RoT keep their savings at home, while 12 per cent households in Chennai choose to do the same.
Forty six per cent of households in RoT prefer to deposit their savings in banks, while 69 per cent prefer the same mode of saving in Chennai.
Though a large percentage of households were saving in banks, they were not investing in high yielding investment tools, it said.
Asked how confident they were about their current and future financial stability, 51 per cent of households in RoT and 62 per cent in Chennai answered in the affirmative.
