Savings accounts 'are being used more and more'

Aussies are increasingly keen to put spare cash into savings accounts rather than blowing it on extravagant and unnecessary purchases, it has been claimed.

Craig James, Commonwealth Securities (CommSec) chief economist, told the Herald Sun that spending habits in the country are undergoing a significant change.

He noted that people are less eager to use their credit cards and that even when going out for a drink, many are opting to have a few high-quality beverages rather than numerous cheaper ones.

"Today's consumer is more likely to spend cautiously; put purchases on Eftpos than the credit card; more inclined to put money in the bank," Mr James commented.

The CommSec expert added that Aussies are now better off than they were in the past and that the relative cost of goods has declined.

Recent figures from the Australian Bureau of Statistics supported Mr James' assertion as they indicated that household savings are at the second highest level in recorded history.

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