Household deposits hit record high in July, rising by $30.8 billion

Australian household deposits reached an all-time high in July 2024, with a record-breaking $30.8 billion added in a single month, according to new data from the Australian Prudential Regulation Authority (APRA).

The total household deposits now stand at $1.50 trillion, marking a 2.1% increase for July – the highest monthly percentage rise since September 2021.

Sally Tindall, Canstar Data Insights Director, attributed this surge to several factors.

“July is almost always a bumper month for deposits, as people stash money back from tax returns safely in the bank,” Ms Tindall said.

“This July, however, many households are likely to have put away additional money from the stage three tax cuts and, for those households that have received them, the savings from government electricity rebates.”

The data shows that household deposits have increased by $110.69 billion (8.0%) year-on-year, and by $230.20 billion (18.1%) since interest rate hikes began in May 2022.

Despite the ongoing cost-of-living crisis, Ms Tindall noted that many families are still managing to build up their financial buffers.

“It’s astonishing to think that amidst this cost-of-living crisis, many families are still managing to build up their buffers, knowing it’s what the doctor ordered,” she said.

However, Ms Tindall cautioned that these totals don’t tell the whole story, acknowledging that many families are struggling financially.

“There are many families out there who are now firmly in the red, wondering how on Earth they’re going to pay for the weekly shop,” she said.

For those in financial difficulty, Ms Tindall strongly advised against using credit cards as a quick fix. Instead, she recommended contacting the National Debt Helpline, a free service that can provide assistance during financial hardship.

The record increase in household deposits suggests that while many Australians are facing economic challenges, others are taking steps to shore up their finances in the face of ongoing economic uncertainty.