Aussies 'putting more into savings accounts'

Mozo

Tuesday 21 June 2011

Worries about the economic situation and the rising value of the dollar have prompted Aussies to put more money into savings accounts as a precautionary measure, new research shows.

Aussies 'increasingly cautious with their money'

Data from the Melbourne Institute revealed that despite low unemployment levels, the household financial conditions index declined 24.3 per cent in June year-on-year.

The proportion of people putting money in savings accounts "for a rainy day" rose to the highest level since the study started examining the reasons for storing cash rather than spending it.

More than half of those polled said this was the motivation behind the cautious use of their funds.

Dr Edda Claus, research fellow at the Melbourne Institute, said the low levels on the household financial conditions index were "a surprise as house price rises have been moderating and the unemployment rate is below five per cent".

This comes after figures from the Independent Pricing and Regulatory Tribunal found that the average cost of energy for a home is likely to rise by $230 next year, which may highlight the need for well-stocked savings accounts.

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