South Korean households are continuing to set aside more cash than before, data showed Monday, even though they can now expect less interest on their savings with the base rate staying at a record low.

According to data from the government and the Bank of Korea, the net savings rate for households came to 6.1 percent in 2014, up 1.2 percentage points from the previous year.

The net savings rate represents the ratio of money set aside by households from their total disposable income. The rate had been on a steady decline from the 20-percent range in the early 1990s to 3.4 percent in 2011 and 3.2 percent in 2012.

The country's key rate has been kept at a record low of 1.5 percent since June following four rate cuts in less than a year.

Still, market watchers believe the rate will continue to rise this year as people are spending less while more are beginning to prepare for retirement.

In the April-June period, the amount of funds held by households and non-profit organizations in bank savings, insurance and stocks increased by a net 61.8 trillion won ($54.37 billion) from the previous quarter. This compares to an on-quarter increase of 43.7 trillion won in the three months ending on March 31, according to the BOK.

The rise in savings rate also comes amid an apparent cut in household income. The country's gross national income slipped 0.1 percent on-year in the second quarter, meaning people are also spending less to save more, market observers said.

With increased savings by households, the combined savings rate of households, firms and the government came to 36.5 percent in the first quarter, the highest since the third quarter of 1998. (Yonhap)