Today the Commerce Department reports that for the second straight month Americans are saving more than 4 percent of their disposable personal income.
The personal savings rate — disposable personal income less personal outlays — was $450.7 billion in February, or 4.2 percent. That's down slightly from January, when Americans saved $478.1 billion or 4.4 percent.
Still, the current savings rate is a far cry from just three years ago, when it hit minus 0.5 percent — its lowest level since 1933. At that time, Americans were, on average, spending all their after-tax earnings plus some money stashed away or on credit.
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