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    Average U.S. Savings Account Balance: A Demographic Breakdown

    American households with savings accounts have a median balance of $5,300 and an average balance of $41,600, according to analysis of data collected by the Federal Reserve. This analysis also goes over the average balances for groups divided by age, race, gender and income.

    Average U.S. Savings Account Balance: A Demographic Breakdown

    by Lauren Perez

    updated Jan 20, 2022

    American households had a median balance of $5,300 and an average balance of $41,600 in their transaction bank accounts in 2019, according to data collected by the Federal Reserve. Transaction accounts include savings accounts as well as checking, money market and call accounts and prepaid debit cards.

    The median figure gives the best approximation of how much most Americans have saved, since the average figure is heavily skewed by high-income outliers with large deposits. Of course, these numbers vary even more across different cross-sections and demographics, including by age, income, ethnicity and education, which we break down below.

    The median and average bank account balance in the U.S.

    Historical trends in the average American savings account balance

    How do your savings stack up?

    How to boost your savings balance

    The median and average bank account balance in the U.S.

    The median transaction account balance of $5,300 was calculated from almost 5,800 weighted responses to the 2019 Survey of Consumer Finances, a triennial survey by the U.S. Federal Reserve. This figure only reflects responses from households that had active transaction accounts at the time of the survey. The weighted average savings account balance was $41,600.


    Median bank account balance

    Average bank account balance*

    2019 $5,300 $41,600 2016 $4,790 $42,580 2013 $4,500 $39,690 2010 $4,120 $38,000 2007 $4,960 $32,720 2004 $5,150 $36,860 2001 $5,690 $35,170

    Dollar amounts are in 2019 dollars.

    As you can see, the typical American savings account balance has changed substantially over time. While the total amount of savings account deposits has consistently increased over time, the distribution of that total has varied widely, as seen in the disparity between average and median savings balances shown in the figures above.

    Average bank account balance by income

    Unsurprisingly, the median size of household savings account balances was most heavily influenced by income. American households with higher incomes turned out to have much larger account balances compared to households in lower income groups.

    Households with incomes in the 90th to 100th percentiles reported a far larger average balance than all other groups, likely because of a few extremely high-income outliers. Still, between 2013 and 2019, every income group experienced growth in their average and median account balances.

    American Bank Account Balances By Income, 2016-2019

    Percentile of income

    2016 average savings

    2019 average savings

    3-year change

    Less than 20 $600 $800 33%

    20–39.9 $1,800 $2,100 17%

    40–59.9 $4,000 $4,400 10%

    60–79.9 $8,700 $10,000 15%

    80–89.9 $19,900 $20,000 1%

    90–100 $65,900 $69,000 5%

    Bank account balance by age

    Generally, the survey data for bank accounts supported the idea that households with older individuals are likely to have higher balances in their savings accounts. The one exception to this trend was that households headed by someone 45 to 54 years old reported a higher average balance than their older counterparts in the 55 to 64 age group.

    The oldest group did report the highest median savings balance by a small margin. At the other end of the spectrum, households under the age of 35 had the lowest median balance of $3,200, along with the lowest average balance of $11,200. As in other cases, the large difference between average and median balance reflects the presence of high-income outliers in every age bracket.

    Bank account balance by race

    According to the data collected by the Federal Reserve in 2019, the average account balance of Black and Hispanic households was significantly lower than the average balances for non-Hispanic whites and groups classified as "other or multiple race." According to the Federal Reserve, the "other" group in the Survey of Consumer Finances consisted of "respondents identifying as Asian, American Indian, Alaska Native, Native Hawaiian, Pacific Islander, other race and all respondents reporting more than one racial identification."

    The contrasts in bank account balances between households of different races are likely due to differences in broader economic factors. Income, for instance, may be a major factor in determining the level of savings that a household accumulates. According to the Census Bureau's 2019 data, white non-Hispanic households had a median income of $76,057, while Hispanic and Black households had median incomes of $56,113 and $45,438, respectively.

    Bank account balance by education level

    Source : www.valuepenguin.com

    A Look at the Average American’s Savings

    The average American typically saves between 6% and 8% of their monthly income. Explore American checking and savings data, plus tips for saving smarter.

    A Look at the Average American's Savings

    Tyler Parker, PBO Manager, First Republic Bank

    January 13, 2022

    Many factors affect the average American's savings, including age, education level and income bracket.

    Retirement savings is considered a different pot of savings versus total account balances.

    Ways to increase savings include creating a budget, automating savings, consolidating debt and speaking with a financial professional to make a plan.

    The average American's savings varies by household and demographic. As of 2019, per the U.S. Federal Reserve, the median transaction account balance (checking and savings combined) for the American family was $5,300; the mean (or average) transaction account balance was $41,600.

    With these figures in mind, how much does the average American save a month? Savings-specific data are difficult to come by, but the 2019 Federal Reserve Survey of Consumer Finances provides information about transaction account balances, which cover both average checking account and average savings account balances. Here, we’ll primarily explore the latest transaction account balance data from this survey.

    Average savings by age

    We can identify savings trends based on age. Older age groups, for example, generally have larger mean and median account balances (though some exceptions exist). A more than $6,000 differential appears between the median account balances of Americans younger than 35 and Americans older than 75.

    Here are some key statistics:

    AgeMedian Balance of AccountsMean Balance of AccountsYounger than 35

    $3,240 $11,250

    35 to 44

    $4,710 $27,910

    45 to 54

    $5,620 $48,200

    55 to 64

    $6,400 $55,320

    65 to 74

    $8,000 $57,670

    75 and older

    $9,300 $60,410

    Average savings by education level

    The data on the average American's savings balance also correlate to education level. The data concerning education support the conclusion that more education typically translates to higher bank account balances. Higher education likely explains the difference in savings levels: it paves the way to higher-paying employment and thus the ability to save a percentage of one's income.

    Here are some key statistics:

    EducationMedian Balance of AccountsMean Balance of AccountsNo high school diploma

    $1,020 $9,190

    High school diploma

    $2,050 $20,100

    Some college

    $3,900 $23,550

    College degree

    $15,400 $78,890

    Average savings by income percentile

    The Federal Reserve’s data also shed light on the relation between income and account balances. The income data suggest higher income correlates to higher savings. For example, Americans who earn less than $20,000 have a median account balance of nearly $70,000 less than those who make $90,000 to $100,000.

    Here are some key statistics:

    Income PercentileMedian Balance of AccountsMean Balance of AccountsLess than $20,000

    $810 $8,400

    $20,000 to $39,900

    $2,050 $1,126

    $40,000 to $59,000

    $4,320 $16,390

    $60,000 to $79,900

    $10,000 $28,680

    $80,000 to $80,900

    $20,000 $51,850

    $90,000 to $10,000

    $70,000 $190,660

    Average retirement savings

    Researchers have also looked at retirement savings, which is typically considered a separate savings concept from traditional checking and savings account balances. Looking at these data are correlated to age can highlight the way American households save money when preparing for the future. Keep in mind that the amounts are shown in the table for ages 75 and older reflect the fact that these individuals are likely drawing on their retirement and/or no longer contributing to their retirement.

    Here are some key statistics:

    AgeMedian Balance of Retirement AccountsMean Balance of Retirement AccountsYounger than 35

    $13,000 $30,170

    35 to 44

    $60,000 $131,950

    45 to 54

    $100,000 $254,720

    55 to 64

    $134,000 $408,420

    65 to 74

    $164,000 $426,070

    75 and older

    $83,000 $357,920

    Tips for maximizing your savings

    A thorough approach to savings is essential to any financial plan, and creating a strategic approach is a deliberate way to boost savings. Saving wisely can help you achieve financial goals while ensuring you have enough emergency savings in case of unexpected expenses.

    Savings tips include:

    Create a budget: Budgeting can help you know exactly where your money is going each month, enabling you to develop strategies to reduce spending and contribute more money to savings.

    Source : www.firstrepublic.com

    Here’s exactly how much money is in the average savings account in America

    Plus how to boost your savings, and where to put it.

    Home Picks Money

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    Here’s exactly how much money is in the average savings account in America (and psst: it’s a lot more than you might guess)

    Updated: March 2, 2022 at 6:00 a.m. ET


    Alisa Wolfson


    Plus how to boost your savings, and where to put it.

    But whatever the rules, one thing is clear: Americans who do save are saving more than they used to.


    While there’s no magic number as to the amount of money someone should have in savings, experts agree that at least having an emergency fund — anywhere from 3-to-9 months of expenses — in savings is imperative. One rule of thumb is to follow the 50/30/20 budgeting method by allocating 50% of one’s income for needs, 30% for wants and 20% for savings.

    But whatever the rules, one thing is clear: Americans who do save are saving more than they used to. Northwestern Mutual’s 2021 Planning & Progress Study revealed Americans’ average personal savings accounts grew 10% between 2020 and 2021, from $65,900 to $73,100, which doesn’t include investments.

    And according to data from the 2019 Survey of Consumer Finances by the US Federal Reserve, the most recent year for which they polled participants, Americans have a weighted average savings account balance of $41,600 which includes checking, savings, money market and prepaid debit cards, while the median was only $5,300.  During the pandemic, Americans’ savings soared above normal levels according to data from Moody’s Analytics, a phenomenon economists call excess savings. Specifically, Federal Reserve Economic Data (FRED) reveals that in April 2020, the personal savings rate increased 25.5% from just two months prior.

    Of course, these data points only reflect Americans who actually have savings socked away.  The reality is that many people still have no savings, or very little: Nearly 1 in 5 Americans didn’t save any money in 2021, according to recent data from the latest MagnifyMoney Savings Index. And 18% of respondents admittedly contributed zero dollars to their savings last year and another 48% contributed fewer than $5,000. Bankrate’s July 2021 Emergency Savings survey revealed that a quarter of Americans have no emergency fund at all and just 1 in 6 households report having more savings now than prior to the pandemic.

    If you’re feeling far behind about your savings, be patient. Pros say you should start small — don’t expect to pile up savings overnight. It may take many years of diligent saving to get to the point where your emergency cushion is built up to handle six months of expenses and you’re ready to focus saving for longer-term goals like retirement or your kids’ college funds, according to Greg McBride, chief financial analyst at Bankrate.com. Start by saving one month’s worth of expenses and go from there.

    Beyond that, “you should also consider additional savings goals, such as saving for a downpayment on a house or saving for a special vacation. The funds for these goals can be put in separate sub accounts so that they’re not mixed in with money that’s set aside in an emergency fund,” says Chanelle Bessette, banking specialist at NerdWallet. Certified financial planner Elaine King Fuentes adds, “It would be ideal to have liberty and to be able to do anything you want for at least one year.”

    One big no-no when it comes to savings: Putting it in an account that pays little (the average savings account is only paying 0.06% now). Just 21% of Americans say they kept their savings in a high-yield savings account that pays better APYs in 2021, while 45% reported using a regular savings account according to a survey conducted by NextAdvisor.

    But accounts with higher APYs do exist. In fact, as of the writing of this story, LendingClub was offering interest of 0.65% with a $2,500 minimum balance, Marcus by Goldman Sachs has savings accounts with 0.50% and no minimum balance, Alliant’s current APY is 0.55% with $5 minimum balance, and Comenity Direct’s APY is 0.60% with a $100 minimum balance.

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    About the Author

    Alisa Wolfson

    Alisa Wolfson is a reporter for MarketWatch Picks.

    Source : www.marketwatch.com

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