Abstract: This study examined income and savings pattern among 300 rural households in South-Western Nigeria. Data were collected using structured questionnaire. Data were analyzed using descriptive statistics and probit regression technique. Results showed that majority of the respondents were still within the active age range with mean age of 40.7. Also, 75.2% of the respondents had their annual income <54,750 while 17.1% of the respondents earned between the range of 54,751 and 109,500. About 5.5% earned between the range of 109,501 and 219,000 while 2.2% earned annual income >219,000. Also 54.7% of the respondents had annual savings of <10,000 while 23% of the respondents had their savings ranging between 10,001 and 20,000 annum^-1. Also 16.5% claimed that their savings were between 20,000 and 52,100 and 5.8% savings were than 52,100. However, different socio-economic factors influenced the savings pattern of rural households. These are households’ income, gender of the households head, marital status and years of formal education. The study therefore recommended that financial institutions in the rural areas should be less formal in their operation so as to meet the financial needs of rural households and there should be accessible loan with proper monitoring.