The number of Australian households saving money has increased over the past few months, according to the latest St George Bank-Melbourne Institute Financial Conditions Report.Gains in home prices and shares have helped in creating greater household wealth, while low interest rates are allowing people to save more.The survey found that 48.6 per cent of households saved some money in December - an increase of 3.3 per cent over the September result.There was a substantial increase in the number of households that reported they were saving "a lot" - up almost double from the previous survey, to 11 per cent.Banks deposits remain the preferred place to hold savings. Eighty-four per cent of respondents said their savings had gone into the bank and 32.6 per cent said their future savings would also go into the bank.Twenty-six per cent said they were planning to invest in real estate.Almost half of the respondents (47.5 per cent) said they were saving to reduce debt.Overall, household financial conditions are strong, with 83.4 per cent reporting that they were in a stable financial position.The number of people accruing debt or drawing down on savings fell by 2.4 per cent in December.