Low interest rates and controlled inflation have failed to dampen Australians’ new found love of savings, with the average household savings rising to $15,427 from $5,155 over the last two years.

ING Direct’s Financial Wellbeing Index found that Australians are saving more, paying down their debt and are financially very fit.

The Index found that 93 per cent of home owners are ‘comfortable’ about their mortgage, with the majority now turning their focus on building household savings.

Australian households currently have median savings of $15,427 - the highest since tracking began in Q1 2010. This represents significant savings growth since mid-2011 when the Index recorded a low point for savings of $5,155 per household.

Josh Arnott, ING Direct’s Executive Director Customer, said that the findings are welcome, if a little unexpected.

“It is significant that household savings rose during the first quarter of the year as this is traditionally a time when many Australians experience a cash drain following the festive season,” Mr Anrott said.

“The continued growth in savings since mid-2011 reflects the commitment of Australians to building a buffer of cash, and it is not surprising that high levels of savings are supporting increased financial confidence among households.”

Some of the key findings include:

  • Financial wellbeing with mortgages is on a clear upward trend. 93%of home owners are ‘comfortable’ with their mortgage - 65% are ‘very’ comfortable.
  • 71% of households are comfortable with their level of savings.
  • Household savings are lowest for Gen X households (aged 35-49) with a median of $8,060 compared to $14,377 for Gen Y (18-34) and $17,744 for baby boomers (50-64).
  • In Q1 2013, 13% of Australian households report having zero savings - the lowest since inception of the Index.