Savings accounts and term deposits 'used more extensively'

Aussies are using savings accounts and term deposits more extensively than they have done for 20 years, according to the Australian Bankers' Association (ABA).

Chief executive of the ABA Steven Munchenberg observed that figures from the Reserve Bank of Australia indicate that up to ten per cent of households' disposable income is being put into bank accounts, reports the Daily Telegraph.

"Our savings ratio is higher now than any time in the past 20 years," he said.

ABA figures indicate that at the end of May 2011, Aussie households had stashed away $496 billion in savings accounts.

Earlier this month, managing director of Directorial Insights Helen Bakewell told the Sydney Morning Herald that Aussies are less inclined to indulge in "splurge spending" than they were in the past.

She asserted that "caution is the order of the day" among consumers and that many prefer to put their spare funds aside for a rainy day, whether this is in a term deposit or savings account.

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