Personal savings expressed as a percentage of disposable income -- the income remaining after income taxes and payroll taxes are accounted for. The flow of personal savings adds to the stock of personal wealth.
Savings rate refers to the annual amount of interest you can earn on money you save. For example, if you decide to make a larger down payment on your home, you are sacrificing the interest you would have earned on the additional amount of money.
The interest rate expected on the most conservative of investments. A conservative estimate should be used if the money is intended to be invested for a short time only or the investor is unwilling to risk losing any of the investment. A money market rate of between 5.5 and 6.5 percent is a conservative rate (as of June 2000).