Household deposits with banks declined for a second month in a row in June, a trend that may have more to do with an apparent aversion to credit than a diversion of savings to alternative investments.APRA data for June 2011 shows that retail deposits with banks declined by A$1 billion over the month, following a decline of $2 billion in May. Household deposits were $496 billion at the end of June, a rise of seven per cent over one year and a rise of 16 per cent over two years.The dip in deposits is of note given the steady recovery in the savings ratio as measured by the Australian Bureau of Statistics in the National Accounts. The ABS put the savings ratio in the March 2011 quarter at 10.7 per cent, on a trend basis, a level last reported in the mid-1980s.The savings ratio captures many aspects of household spending and investment behaviour, of which changes in savings with banks and similar entities is only one component.Another component is the level of debt repayment, a trend that appears to be accelerating if the monthly credit aggregates are any guide.The credit aggregates for June 2011, published by the RBA on Friday, showed that total credit fell by 0.1 per cent in June, after rising by 0.3 per cent in May.Housing credit increased by 0.3 per cent in June, following an increase of 0.5 per cent in May.A decline in business credit in June - of 0.7 per cent after being flat in May - is responsible for the overall decline in the credit measure.