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Savings Rate |
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Savings rate Personal savings as a percentage of disposable personal income. Savings Rate The amount a person or organization places in a savings account or similar vehicle as a percentage of total disposable income. Savings are important for long term financial stability as it gives a person or organization a cushion for bad times. The savings rate may be calculated at microeconomic level for personal finances or may be aggregated at the national level to gauge financial health. A low or negative savings rate usually indicates excessive borrowing, spending, or both. On the other hand, a high savings rate may result in slower economic growth as persons and companies are saving instead of purchasing goods and services. See also: Rainy day fund. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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