Saving is paramount important in any development endeavor as it is believed to be the best way of increasing income and enhancing productivity in an attempt to break the vicious cycle of poverty. However, the saving culture in Ethiopia particularly in rural areas is very low and a little were know about its patterns and determinate factors. The main purpose of this study wasto investigate determinants, identify forms of saving and perception of households regard-ing saving in Bahir Dar Zuria Woreda. Primary and secondary data were collected using open ended and closed ended questionnaires from four Kebeles of 377 households. Besides, focus group discussion were conduct with two groups. The samples were select using two- stage random sampling techniques.Descriptive statics and binary logistics model was used to ana-lyze the collected data. Based on the descriptive result, 58.9% of the households did not prac-ticesaving, whereas, 41.1% of the respondents practice saving during the survey time. From the binary logit results, household expenditure, distance from financial institution, access to credit, income had positive and significant impact on household saving. However, age had negative and significant influence on household saving.From the savers side, the resultdepicts thatslightly above half (53.5%), 18.1 % and 28.4%save in cash, in kind and both respectively. Furthermore, the results indicated that most respondents of the study (58.9%) perceived that their income wasnot enough to save, however the majority (89.4%) of the respondents believe that saving is necessary for everyday life.Based on these findings, Governmental and Non-governmental organization should work on agricultural productive and productivity activities engaging to increase household incomeand they have to engage households to participate in different income diversification strategies. Moreover, financial institutions should play their roles to facilitate useful saving services and encourage saving by different mechanisms. Keywords:Saving, Rural Household, Perception, and Income