Savings rate(redirected from Savings Rates)
Personal savings as a percentage of disposable personal income.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved