(MONEY Magazine) – At anemic rates of less than 4.5% during the past four years, Americans' saving habits have become a national disgrace. But as the nation's personal- saving-rate figures at right indicate, a turnaround seems under way. According to the Commerce Department, the saving rate for the three months that ended in February rose from 4.34% a year ago to 5.18%, its highest level since 1984. The saving rate -- the percentage of after-tax income the public does not spend -- will appear monthly in Investor's Scorecard. Economist A. Gary Shilling of New York City forecasts a saving rate above 10% by 1995. That would reduce borrowing costs and spur businesses, thereby benefiting consumers and investors. Credit both current and long-term economic trends for the new drift toward thrift. The highest yields in years on popular savings vehicles such as money- market deposit accounts, money-market funds and certificates of deposit re attracting money. Indeed, money fund assets of individuals just hit an all- time high of $282.8 billion. Some consumers, bent on spending, are also only parking cash temporarily until interest rates drop on auto loans and credit cards.

Looking long-term, many economists note that the 76 million baby boomers are nearing their peak earning years and should find it easier to save. Also, increasingly, they will find it necessary to set aside cash to pay for their children's college education and to finance their own retirement.

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