The general objective of this study was to examine determinant of household saving in Bahir Dar city. Cross-sectional primary data was collected using structured questionnaire from 398 households from six sub-cities of Bahir Dar city. Stratified random sampling was used in order to draw representative sample from the target population (households). Tobit regression model was used to analysis the data. Based on the Tobit model, higher expenditure on consumption and low level and uncertain sources of income reported as major challenge of saving. The empirical analysis of the study found that age, marital status, income, housing ownership, use of financial planning and incentives are positive and significant determinants of average household saving. If the income of the household increased by 1000-birr, average household saving increased by 276.53 birr and married household save more 189.56 birr than un married. Availability of incentive also causes an increase of household saving by 183.05 birr. While age square, family size and education of the household head are significantly negative, sex and occupation of the household head found to be insignificant. And a one person increases in the family causes decrease of household saving by 123.24 birr on average. The study, therefore, recommended for government policies to be geared towards family planning, job creation and income generating activities and financial institutions should take a large work of providing saving incentives, new and diversified saving products.