Australians save up at record levels

Australians are saving up at a rate not seen for over two decades, new figures show.

The latest GDP data, which has been obtained by the Australian, reveals that consumers are saving the most since 1987, though similarly high levels were seen during the anomaly of last year's fiscal stimulus.

According to the national accounts, the household savings rate reached 10.2 per cent in the September quarter of 2010, up from the 8.9 per cent recorded in the previous three months.

Such a savings surge could prompt more consumers to compare term deposits in search of the best returns.

Speaking to the newspaper about the trend, CommSec equities economist Savanth Sebastian suggested that higher savings were down to rising national incomes brought on by the resources boom.

"The extra dollars coming in aren't being spent," he noted.

"Consumers and business are holding on to the cash until the economic recovery gains traction."

The news comes after Reserve Bank governor Glenn Stevens this week called on Australians to ''seek to save the bulk of the surge in national income occurring in the next year or two".

This article is brought to you by Mozo – Helping you compare term depositsADNFCR-1761-ID-800268814-ADNFCR