‘Savings accounts are dying’: A silent money shift is breaking the system, warns founder

The banking system is not collapsing, it is being quietly abandoned. CoinSwitch co-founder Ashish Singhal warns that as an entire generation pulls money out of banks and into stocks, crypto, and gold, the core engine of modern finance is starting to break — and no one’s ready for what comes next.

“People earn → Put money in stocks, crypto, real estate → Banks get less,” Singhal wrote on LinkedIn, summarizing a generational shift that’s upending the traditional flow of money.

For decades, the model was simple: people earned, saved in banks, banks lent that money to fund growth — from homes to highways. But that only worked because savers were content earning 0–4% on deposits.

Now? “Why would a 25-year-old keep ₹10 lakhs in a savings account at 4%,” Singhal asked, “when stocks return 12%, crypto promises more, and even gold feels safer than cash?”

The assumption that people will always trade returns for safety is collapsing. The new generation sees fixed deposits as financial self-sabotage — a mindset shift that could reshape everything from consumer lending to sovereign debt.

“Every generation before this one kept most of their wealth in banks or FDs. This generation sees that as leaving money on the table.”

The implications are massive. If banks no longer hold the majority of household savings, their ability to lend — and by extension, fund growth — begins to weaken. That hits not just the private sector, but public systems reliant on steady capital flows: pensions, infrastructure, even government borrowing.

“Banks. Governments. Pension systems. All of it,” Singhal wrote. “We’re watching a fundamental shift in how people think about storing value. Nobody’s really sure what comes next.”