Savings surge as shares stagnate
Households have pumped an extra $34 billion into bank deposits in the past 12 months as Australia's wave of consumer and investor conservatism rolls on.
New government figures show that at the end of June, almost $496 billion was sitting in household deposits up 7.4 per cent from $462 billion a year ago. In the past five years household deposits have surged 78 per cent, from $279 billion in June, 2006.
The big banks dominate household deposits with the Commonwealth Bank the biggest holder of our cash at $134 billion, up from $82 billion five years ago.
More than $100 billion of our cash is sitting in everyday transaction accounts that pay little or no interest.
With the All Ordinaries index of Aussie shares still needing to climb 55 per cent to get back to its 2007 peak, it's little wonder that deposits are booming.
Source: The Daily Telegraph