Savings Rate


Savings Rate

The amount of money, expressed as a percentage or ratio, that one deducts from his/her disposable personal income to set aside as a nest egg or for retirement. The cash accumulated is typically put into very low-risk investments (depending on various factors such as expected time until retirement), like a money market fund or a personal IRA comprised of non-aggressive mutual funds, stocks and bonds.

For years, the savings rate in the United States has declined. In the 1970s and 1980s, personal savings rates were in the 5% to 7% range but then decreased to 1% to 3% range in the 21st Century. These averages figure tend to fall even lower as the American population, as a whole, continues to age. The national average savings rate is often determined by how a particular culture views debt and values possessions.


Investment dictionary. . 2012.

Look at other dictionaries:

  • savings rate — Personal savings as a percentage of disposable personal income. Bloomberg Financial Dictionary * * *    The proportion of income that is put aside and not consumed immediately …   Financial and business terms

  • Golden Rule savings rate — In economics, the Golden Rule savings rate is the rate of savings which maximizes steady state growth consumption in the Solow growth model. It is a term attributedref|PhelpsAttribution to Edmund Phelps who wrote in 1961 that the Golden Rule do… …   Wikipedia

  • National Savings Rate — An estimate from the U.S. Commerce Department s Bureau of Economic Analysis (BEA) of the amount of income left over after subtracting consumption costs and expenditures. The National Savings Rate, though it is referred to as a savings rate, does… …   Investment dictionary

  • personal savings rate — UK US (also personal saving rate) noun [C, usually singular] ► FINANCE the percentage of the money people have available that they save in a bank, etc. rather than spending it: »Incomes rose, but the personal savings rate fell. »The personal… …   Financial and business terms

  • List of U.S. states by savings rate — This article includes a list of U.S. states that have highest portion of savings (i.e pensions, investment products, 401(k)); regular savings account, certificate of deposit, or Individual Retirement Account. The increase in people has also… …   Wikipedia

  • rate — The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… …   Financial and business terms

  • rate tart — noun (informal) A person who frequently moves money between different savings accounts in order to take advantage of the most favourable rates of interest. • • • Main Entry: ↑rate …   Useful english dictionary

  • Savings and loan crisis — The savings and loan crisis of the 1980s and 1990s (commonly referred to as the S L crisis) was the failure of 747 savings and loan associations (S Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around… …   Wikipedia

  • Savings and loan association — A savings and loan association, also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage loans. The term is mainly used in the United States; similar institutions in the United Kingdom …   Wikipedia

  • Rate of return — In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.