Australians sitting on $1.47 trillion in deposits - another record high

Money in the bank from households hit another record high in March, with new figures from APRA revealing Australians stashed more than $8.2 billion in the bank in just one month.

The total amount of household deposits is now sitting at $1.47 trillion, almost $200 billion more than before the start of the cash rate hikes.

Note: deposits from households include term deposits, transaction accounts, mortgage offset accounts and savings accounts.

Total deposits by households, March 2024

Source: APRA monthly authorised deposit-taking institution statistics.

Total deposits by households: APRA

Source: APRA monthly banking statistics.

Home loan books continue to grow

The total value of housing loans to households - which includes both owner-occupied and investor loans - increased by more than $8.50 billion, or 0.4 per cent this month, with all four big banks recording growth in their loan books.

Westpac was the strongest of the big four banks, both in percentage and dollar terms, with a $2.33 billion increase to its loan book, equalling a 0.5 per cent increase, from the previous month.

CBA continued to make a steady comeback this month with a $1.85 billion increase from the previous month – the strongest growth since June 2023, after the bank posted three months of negative growth in the second half of last year.

As a result, the bank’s home lending book has grown annually by less, in dollar and percentage terms, than Westpac, NAB, ANZ and Macquarie.

Macquarie picked up the pace in home lending in March, posting a 0.7 per cent increase from the previous month. This is an acceleration compared to the previous two months which recorded rises of just 0.1 per cent and 0.3 per cent, respectively.

Big four banks + Macquarie: loans to households, housing

Source: APRA. *Authorised deposit-taking institutions. Note: loans to households: housing is total of both owner-occupier and investor loans as recorded by APRA.

RateCity.com.au research director, Sally Tindall, said: “Household deposits continue to defy gravity as Australians remain focused on building their war chests.”

“The rate hikes might be exerting extreme pressure on many household budgets across the country, but those that can are putting a priority on saving every spare dollar they have in the bank,” she said.

“Retail trade figures for March posted a 0.4 per cent drop from the previous month, in another sign Australians are reassessing every dollar they spend.

“With a cloud of doubt forming around the prospect of any rate relief in 2024, things could still get tougher before they get easier. That’s a message that’s not been lost on many Australians.

“Westpac posted the strongest growth in its home lending book this month as the bank continues to chase market share.

“The bank is one of a handful of lenders still offering a cash incentive to refinancers via its subsidiaries St George, Bank of Melbourne and Bank SA.

“This year, CBA has managed to regain the ground it lost in the second half of last year, however, looking at the growth in its home loan book over the last 12 months it still lags behind its key competitors,” she said.

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