National Savings Rate

DEFINITION of 'National Savings Rate'

An estimate from the U.S. Commerce Department's Bureau of Economic Analysis (BEA) of the amount of income left over after subtracting consumption costs and expenditures. The National Savings Rate, though it is referred to as a "savings rate," does not actually measure the amount of money Americans are saving or investing for the long-term. National savings include savings left over from personal, business and government.

BREAKING DOWN 'National Savings Rate'

The National Savings Rate is confusing at first glance, due to the fact that it is often substantially less than what the typical American reports contributing to their employer-sponsored retirement plans and IRAs. This difference is because the national savings rate includes government savings, and they are usually reporting deficits which lowers the national savings rate.

RELATED TERMS
  1. Savings

    According to Keynesian economics, the amount left over when the ...
  2. Automatic Savings Plan

    A type of personal savings system in which the plan contributor ...
  3. Bureau of Economic Analysis - BEA

    A division of the U.S. federal government's Department of Commerce ...
  4. U.S. Savings Bonds

    A U.S. government savings bond that offers a fixed rate of interest ...
  5. Federal Savings and Loan

    A federally chartered savings and loan is a banking institution ...
  6. Tax-Deferred Savings Plan

    A savings plan or account that is registered with the government ...
Related Articles
  1. Savings

    5 Ways To Trick Yourself Into Saving Money

    You've heard it a million times - you should save more money. If you're having a tough time doing it, check out these 5 simple "tricks" to saving more money.
  2. Investing

    10 Ways to Effectively Save for the Future

    Savings is as crucial as ever, as we deal with life changes and our needs for the future. Here are some essential steps to get started, now.
  3. Savings

    Banking: Savings Accounts 101

    By Amy FontinelleAfter checking accounts, the next biggest thing most people think about when they think about banking is savings accounts. Having a savings account somewhere to store extra cash ...
  4. Investing Basics

    Saving vs. Investing: Understanding the Key Differences

    The terms saving and investing are sometimes used interchangeably, but they are very different and extremely important to understand in order to achieve security and prosperity.
  5. Savings

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  6. Investing Basics

    Saving

    Saving for the future has historically been one of the best uses of bonds.
  7. Taxes

    Retirement Planning For 30-Somethings: Reducing Savings

    If you have accumulated savings, but find yourself highly in debt, it is possible that you are saving too much. Having a large nest egg can be attractive, but the associated benefits can be eroded ...
  8. Retirement

    10 Retirement Savings Myths That Won’t Go Away

    If you’re confused about the different retirement investment vehicles or don’t know how to save for retirement, it’s important that you do your research.
  9. Retirement

    How to Catch Up on Retirement Savings

    Lots of people nearing retirement don't have enough saved. Thankfully there is a host of ways to catch-up on saving, from working longer to saving more.
  10. Your Clients

    How Much Millennials Need to Save for Retirement

    Millennials may not be worrying about retirement just yet, but they should be thinking about how much they'll need to save for retirement.
RELATED FAQS
  1. How soon should I start saving for retirement?

    Learn about the basics of retirement planning and the reasons why it is so advantageous for individuals to start saving for ... Read Answer >>
  2. What economic factors affect savings account rates?

    Find out how supply, demand and central bank policy all affect savings account rates offered by banks for extra deposits ... Read Answer >>
  3. What is the rate of return I can expect on a savings account?

    Find out what kind of return you can expect from the cash balance in your savings account and why interest rates have been ... Read Answer >>
  4. What is the difference between residual income and savings?

    Discover the differences between various forms of income and their functions, including residual, disposable and discretionary ... Read Answer >>
  5. In what manner will a recession likely affect the marginal-propensity-to-save rate ...

    Learn why recessions are often accompanied by an increase in the marginal propensity to save and whether this is a concerning ... Read Answer >>
  6. How is marginal propensity to save calculated?

    Find out about marginal propensity to save, what the it indicates about a household and how to calculate a household's marginal ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center