For Ann and Darrin Kron, a souring economy provided all the added incentive they needed to start saving more of their paychecks.

"We didn't do much emergency saving before, but then we started thinking about what we need to do to be more secure," Ann Kron said.

So the parents of three, both of whom work for the State of Montana, set a goal late last year: Save up enough money to cover the mortgage, utilities and groceries for eight months.

According to the Bureau of Economic Analysis, the Krons are hardly alone in trying to stash some cash. The bureau reported that nationally, the savings rate leapt to 5 percent in January -- a figure that, if extrapolated over an entire year, is the highest savings rate seen in this country since statistics were first kept in the 1950s.

Officials with local financial institutions report the trend is similar among Helenans.

"We're seeing everything from the blue-collar guy who's now putting $50 or $100 away to the guy who maybe has had enough of the stock market and will bring in a larger chunk of money," said Rick Wiedeman, regional credit manager at First Community Bank. "People are trying. They're not consuming, and they're literally just trying to save, whether it's for the rainy day or they just don't want to spend the money right now."

The number of savings accounts at the bank is up nearly 20 percent, Wiedeman said. But even beyond that, he said people who used to carry a checking account balance of $500 may now have an extra cushion of $800 or $900 in the account.

"The savings rate and balances at Valley Bank of Helena are a mirror image of what's happening on a national scale," said Valley Bank president Andy O'Neill. "People are evaluating their situations and making sure to put money away for a rainy day in light of the economic news we are seeing."

For the Krons, setting money aside got easier after a couple of months.

"It almost becomes addictive," Ann Kron said. "People talk about how spending can become addictive, but when you don't buy, it almost becomes addictive in the other way. It's very rewarding."

And, it works: "We've gotten to the point now where if I lost my job, we could live for a year without my income," she added.

Mike Grove, president of Bank of the Rockies, which has branches in Helena and several other central Montana towns, said he's seeing the same trend in savings.

"I know for sure people are finding safer places for their money, and I think it's evident people are being more careful in everything they do," he said. "Even if their income hasn't changed, they're more cautious today."

The trend in savings across the United States is a marked change from just three years ago, when the savings rate dipped into negative territory, meaning people were spending everything they earned and then some.

While most would agree a negative savings rate isn't healthy, everyone deciding to hoard cash may not be the best way out of the recession. Consumer spending is a huge driver of the American economy, and if people aren't spending, business slows down in practically every sector.

Valley Bank's O'Neill said putting money away and passing it around are both necessary.

"Saving is extremely important, but it's also important for us to spend money to stimulate the economy, both locally and nationally," he said.

Bank of the Rockies' Grove said the increased savings are generally favorable for banks, since the amount of money on deposit helps determine how much money the bank can loan. But fewer people are looking for loans in a slow economy.

"It's good news because we do know that our customer base is protecting its money, and that gives us a good base to grow on," he said. "But the fact that people aren't spending, our business is to make loans, and we're still making loans like before, but not as many because people aren't requesting it. And we have money to lend."

Mick Karls at Rocky Mountain Credit Union confirmed that customers are seeking safe havens.

"Indeed, we are seeing growth in the savings end of things, particularly in the certificates and money markets," said Mick Karls, vice president of Rocky Mountain Credit Union. "What we're finding is people are pulling (their money) out of Wall Street and putting it in more secure investments. We definitely saw growth in those areas in both January and February."

The sentiment was echoed by Pete Johnson, president of American Federal Savings Bank.

"Although we can't speak to specific percentages for personal savings rates, we are definitely seeing an increase in deposits," Johnson said. "In terms of general trends, people in the local area seem to be saving more, spending less, and paying down debt."

John Harrington 447-4080 or john.harrington

@helenair.com.