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Household deposits hit new record high of $1.46 trillion – new data reveals - featured image
By Chris Dang
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Household deposits hit new record high of $1.46 trillion – new data reveals

Money in the bank from households continues to climb with  APRA's latest data showing Australians collectively stockpiled an additional $6.17 billion in the month of February.

This takes the total value of household deposits to a new record high of $1.46 trillion.

APRA’s monthly banking statistics released today also show that since the start of the rate hikes, deposits from households have risen by an astonishing $191 billion, or over 15 per cent.

Total deposits by households, February 2024

Amount Monthly change Year-on-year change Since start of hikes (April 2022)
$1.46 trillion $6.17 billion
0.42%
$108.93 billion
8.05%
$191.40 billion
+15.07%

Source: APRA monthly authorised deposit-taking institution statistics.

Total Deposits By Household Apra

Monthly growth in household deposits slows

While the total amount households have in the bank in savings and transaction accounts, mortgage offset accounts and term deposits continues to rise, the rate at which it is growing is now starting to slow after a spike around tax return time (July and August 2023).

Monthly Growth In Total Household Deposits

RateCity.com.au research director, Sally Tindall, said:

“Collectively Australians are continuing to build up their financial safety nets as people put a priority on protecting themselves from future shocks.”

APRA's data shows that in February alone, Aussies beefed up their bank accounts by more than $6 billion.

While this increase is lower than previous months, it’s astounding to think money in the bank from households is still going up, rather than down, after years of surging inflation and 13 cash rate hikes, rising by almost $200 billion over the course of this time.

That said, this record-high $1.46 billion buffer is anything but evenly spread.

With credit card debt and home loan arrears both on the rise, cracks are starting to widen between those still able to add to their war chests and those who are now having to resort to financial lifelines such as hardship programs.

Surprisingly, new research from the RBA suggests higher income earners are more likely to be dipping into their offset accounts and redraw facilities than borrowers on lower wages.

The RBA’s latest Financial Stability Review found that borrowers in the highest income group were the only group that were, in aggregate, noticeably dipping into their redraw and offset balances. Meanwhile, many borrowers in the three lower income groups typically had smaller buffers but had managed to add to these buffers in 2023,”

Mortgages

The value of home loans grew in the month of February to a total of $2.17 trillion.

This was a 0.26 per cent increase from the previous month.

All big four banks increased their loan books this month, with ANZ leading the way in percentage terms at 0.43 per cent, although CBA’s residential mortgage book grew a greater amount in dollar terms, with a monthly increase of $1.32 billion.

Looking over the year, ANZ has increased its book by an impressive 7.71 per cent.

Macquarie Bank had a much slower February compared to previous months, although the bank still managed to post a 10.31 per cent increase in the size of its residential mortgage book since the same time last year.

Big four banks + Macquarie: loans to households, housing

Amount Monthly change Year-on-year change Current share of ADI* market (Feb)
CBA $547.77 billion $1.32 billion
0.24%
$10.21 billion
1.90%
25.2%
Westpac $464.13 billion $1.10 billion
0.24%
$21.11 billion
4.77%
21.4%
NAB $317.63 billion $712 million
0.22%
$11.52 billion
3.76%
14.6%
ANZ $294.06 billion $1.25 billion
0.43%
$21.05 billion
7.71%
13.5%
Macquarie $114.83 billion $155 million
0.14%
$10.73 billion
10.31%
5.3%
All ADI loans $2.17 trillion $5.63 billion
0.26%
$95.70 billion
4.61%
100%

Source: APRA. *Authorised deposit-taking institutions.

Note: loans to households: housing is total of both owner-occupier and investor loans as recorded by APRA.

Ms Tindall commented:

“ANZ’s strategic decision to stay in the home loan cashback game is likely to be a key contributing factor to the bank’s strong growth in its mortgage book.

While the majority of banks retreated from the cashback scene back in 2023, the RateCity.com.au database shows there are still 12 lenders offering cash incentives to seduce refinancers on to their books,”

About Chris Dang Chris Dang is an accountant by training and has worked in the Financial Planning industry for many years. Chris brings together property, accounting, and financial planning experience to help clients of Metropole Wealth Advisory create a holistic plan for their wealth.
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