Australians have added an impressive $30.81 billion to their savings, pushing total household deposits to a record-breaking $1.5 trillion, according to the latest data from the Australian Prudential Regulation Authority (APRA).
This surge marks an 18.13% increase since the beginning of interest rate hikes in April 2022, indicating that buyers might now be in a stronger financial position to afford down payments, potentially contributing to greater market stability.
“At $1.50 trillion, this sets a record for household deposits, as some Australians have shown resilience in the face of 13 rate hikes and soaring inflation,” said RateCity.com.au money editor, Laine Gordon.
However, Ms Gordon noted that this significant July growth follows a slight decline in June, where household deposits dipped by 0.78%.
“Australians have historically poured more money into savings in July as tax returns hit their accounts. This year, families have had an extra boost as stage three tax cuts and government energy rebates free up more income,” she added.
The major banks—Commonwealth, Westpac, NAB, and ANZ—hold the lion’s share of these deposits, with CBA leading at $398.45 billion.
Meanwhile, the home loan market also saw growth, with ANZ leading the big four in percentage growth, even as NAB experienced a slight dip. The upcoming ANZ-Suncorp merger is set to shake up the market, positioning ANZ as a major contender.
APRA’s data reflects the ongoing tug-of-war between saving and spending in an increasingly challenging economic environment. As households bolster their savings, banks are also fiercely competing in the growing home loan market, underscoring the shifting dynamics in Australia’s financial landscape.
