RBA urges Aussies to save while times are good

The Reserve Bank (RBA) has called on Australians to save up during the current age of "prosperity".

RBA governor Glenn Stevens suggested that the surging value of Australian exports over the last decade has meant that "we are living through an event that occurs maybe once or twice in a century''.

He therefore called on Australians to ''seek to save the bulk of the surge in national income occurring in the next year or two'', noting that the long-term prospects for the country's terms of trade are still unclear.

''A prudent approach might be to use the current period of exceptionally favourable international prices to raise our saving,'' Mr Stevens said at a dinner in Melbourne.

Indeed, he noted that the savings rate among households has increased markedly over the past five years.

Consumers seeking to boost their long-term savings could choose to compare term deposits in search of the best returns. Last week, Sydney Morning Herald finance writer John Collett suggested that savers shop around rather than allow their existing term deposit funds to be rolled over into another account.

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