Household deposits reach record high $1.5tn
Off the top of pronounced July growth, recent data from the Australian Prudential Regulation Authority (APRA) has revealed that housing deposits have surged to a record high amount.
APRA’s Monthly Authorised Deposit-Taking Institution Statistics for July 2024 has revealed the total savings held in the bank by Australian households is now at a record high of $1.5 trillion.
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Extrapolating on these findings, the government agency reported that Australians deposited an extra $30.81 billion in household deposits over July 2024, marking a 2.1 per cent increase on a month-by-month basis.
APRA detailed that household deposits rose by $110.69 billion throughout the last year – a 7.8 per cent increase from the previous year – and by $230.20 billion since the beginning of the rent hikes in April 2022 until July 2024, registering as a 18.13 per cent increase over the period.
Speaking on the report’s findings, RateCity money editor Laine Gordon said that “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”.
“However, this bumper July growth comes off the back of a drop in household deposits in June, albeit a small dip of 0.78 per cent in the month,” he added.
Notably, the total value of housing loans to households – encompassing both owner-occupied and investor loans – grew by $6.77 billion (0.31 per cent) over July 2024.
ANZ recorded the highest percentage change among the big four banks, with the bank’s monthly increase of 0.43 per cent resulting in a $1.29 billion addition to its home loan book.
While NAB’s loan book slightly receded during July, declining by 0.10 per cent or $329.4 million, RateCity relayed that the “longer term trend for NAB continues to be one of growth, up $9.7 billion (3.12 per cent) year-on-year”.
RateCity further highlighted that “once the ANZ-Suncorp merger is finalised, ANZ is set to move into third position as the big banks continue to fight for home loan market share”.
Discussing the growth in household deposits in July 2024, Gordon stated that “Australians have historically poured more money into savings in July as tax returns hit their accounts”.
Delving further into the conditions behind the record high growth, Gordon highlighted that “this year, families have had an extra boost as stage three tax cuts and government energy rebates free up more income”.