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Written by Liz Knueven and Sophia Acevedo, CEPF; edited by Laura Grace Tarpley
2023-10-19T18:16:23Z
- Average savings by age
- Average savings by household size
- Average savings by race
- Average savings by education level
- Average savings by homeownership
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- Data from the Federal Reserve shows the average American family has $62,410 in transaction accounts.
- Factors like age or education level may impact the amount the typical American actually has saved.
- The average American savings balance may also depend on household size and homeownership status.
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According to data from the Federal Reserve's 2022 Survey of Consumer Finances, the average American family has $62,410 in savings, across savings accounts, checking accounts, money market accounts, call deposit accounts, and prepaid cards.
Note that this number is an average, not a median, which means it can be skewed by households with especially high or low balances. This number does not include investment balances, like money held in a retirement account or other brokerage account, or any equity held in real property, like a house.
When you look a little closer at the data, there are several factors that influence how much an American household actually has saved.
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Average savings balance by age
Older Americans tend to have more cash in the bank than younger Americans. The average person between the ages of 45 to 54 has $50,590 more than the average person under age 35. However, average savings account balances start to decline after age 70.
Here's how the average savings balances break down by age group, according to Federal Reserve data:
| Age group | Average balance |
| Under 35 | $20,540 |
| 35 to 44 | $41,540 |
| 45 to 54 | $71,130 |
| 55 to 64 | $72,520 |
| 65 to 74 | $100,250 |
| 75 or older | $82,800 |
Average savings balance by household size
Kids and marriages tend to dramatically change a family's household savings balance.
On average, single-parent households under the age of 55 tend to have the lowest average savings balances, while couples without children tend to have the highest average savings balances.
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| Type of household | Average savings balance |
| Single, no children (under the age of 55) | $19,320 |
| Single, no children (over the age of 55) | $37,220 |
| Single with one or more child | $16,800 |
| Couple, no children | $103,140 |
| Couple with one or more child | $73,890 |
Average savings balance by race
A large racial wealth gapstill exists in America, from income to household wealth.
According to data from the Federal Reserve, that gap flows into savings balances as well.
| Race of respondent | Average savings balance |
| White | $80,040 |
| Black | $13,370 |
| Hispanic | $15,710 |
| Other | $45,810 |
Average savings balance by education level
As a family's education level increases, so does the average savings balance. People who earned a high school diploma have an average savings balance double that of those who haven't. Similarly, people with a college degree have an average savings balance about five times greater than that of someone who only completed high school.
Here's how education affects savings balance, according to the 2022 Survey of Consumer Finances:
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| Highest education level completed | Average savings balance |
| No high school diploma | $9,130 |
| High school diploma | $23,380 |
| Some college | $33,410 |
| College degree | $116,010 |
Average savings balance by homeownership
People who own homes tend to save more, on average, than people who own homes have more cash in the bank than those who rent, according to Federal Reserve data.
| Housing type | Average savings balance |
| Owns | $85,430 |
| Rents | $16,930 |
Compare today's savings rates
Customers Bank High Yield Savings Account
Raisin, FDIC or NCUA Insured Accounts
Perks
Earn 5.32% Annual Percentage Yield (APY). $1 minimum deposit. FDIC Insured.
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.32%
Minimum Deposit Amount
$1
Pros
- Accounts pay high interest rates
- No fees
- Open accounts you might not be able access outside of Raisin
- Minimum opening requirements are often lower than if you opened an account directly with a bank
Cons
- No checking accounts or business accounts
- Only way to deposit or withdraw money is by connecting to an external account
- Can’t connect to third-party budgeting apps
Insider’s Take
Raisin is a great option if your ultimate goal is to earn the best savings account, money market account, and CD rates out there. It's a marketplace that connects you with accounts you might not be able to access otherwise, including ones at community-driven and minority-owned institutions.
Customers Bank High Yield Savings Account, powered by Raisin review
Product Details
- Raisin is an online marketplace that partners with banks to offer competitive rates
- Offers high-yield savings accounts, money market accounts, CDs, and no-penalty CDs
- Filter your search by institution, or by type of institution (e.g., minority-led, family-owned, or supports small business)
- Interest is compounded daily and paid monthly
- Deposits are federally insured by the FDIC or NCUA
SoFi Checking and Savings
SoFi Bank, Member FDIC
Perks There is no minimum direct deposit amount required to qualify for the 4.60% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
Earn up to a $300 bonus with qualifying direct deposits for eligible customers through 6/30/24. Earn up to 4.60% APY on savings balances (including Vaults) with direct deposit
Fees
no monthly service fee
Annual Percentage Yield (APY)
SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
up to 4.60%
Minimum Deposit Amount
$0
Bonus
Customer must complete a direct deposit with a minimum initial deposit of $250 in a new SoFi Checking and Savings account within 45 days of clicking to qualify (offer expires 06/30/24)
up to $300
Pros
- FDIC insured for $2 million
- High interest rate
- Earn a higher interest rate with qualifying activities
- No minimum opening deposit
- No monthly service fees
- No overdraft fees
- Up to $300 bonus with qualifying direct deposit (terms apply)
- Earn up to 15% cash back at local retailers if you use a SoFi debit card
- No-fee overdraft coverage if you overdraw up to $50
- Savings tools
- Early direct deposit
- Joint account available
Cons
- Declined purchase if you overdraw by more than $50
- Doesn't reimburse out-of-network ATM providers' fees
- May deposit cash at Green Dot locations but there's a $4.95 fee
Insider’s Take
SoFi Checking and Savings is a great account option if you don't mind keeping your savings and checking in one account.
Product Details
- FDIC insured for $2 million
- Free access to 50,000+ Allpoint ATMs worldwide
- Hybrid checking/savings account
- Earn up to 15% cash back on local retailers when you use a SoFi debit card; Retailer information is available through online banking
- Earn 4.60% APY on savings balances (Vaults included) and 0.50% APY on checking balances if you set up direct deposit or deposit minimum $5,000 per month
- Earn 1.20% APY on SoFi Checking and Savings if you don't have qualifying activities
- Earn up to $300 cash bonus available through June 30, 2024; receive a $50 bonus if you make a direct deposit between $1,000 and $4,999 in the first 30 days of opening an account; receive a $300 bonus if you make a direct deposit of $5,000 or more in the first 30 days of opening an account
- Create up to 20 Money Vaults to save for individual savings goals like an emergency fund or vacation
- $4.95 fee each time you deposit cash at a Green Dot location
- To get no-fee overdraft coverage you must have at least $1,000 in direct deposits
Overview of average American savings balances
The average American savings balance can vary greatly depending on your circ*mstances. Numerous factors, such as age, household size, race, education level, and homeownership status can impact how much you've saved.
Also, keep in mind that the data we've included from the Federal Reserve's 2022 Survey of Consumer Finances doesn't not factor in retirement accounts, and represents an average savings balance of high-income and low-income American families.
Liz Knueven
Personal Finance Reporter
Liz was a personal finance reporter at Insider. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.
Sophia Acevedo, CEPF
Banking Reporter
Sophia Acevedo is a banking reporter at Business Insider. Sophia joined Insider in July 2021. She writes bank reviews, banking guides, and banking and savings articles for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF).Sophia is an alumna of California State University Fullerton where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@insider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>Below are links to some of her most popular stories:
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Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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I've spent years diving into personal finance intricacies, analyzing surveys, like the Federal Reserve's Survey of Consumer Finances, and dissecting trends in household economics. Understanding the nuances of savings by age, household size, race, education level, and homeownership status involves an intricate grasp of financial landscapes. The Federal Reserve's data for 2022 is a goldmine, revealing significant disparities and correlations that affect American savings.
Firstly, let's break down the crucial elements:
-
Age: Savings dramatically shift with age. While those under 35 average around $20,540, the 65 to 74 age group boasts $100,250, showcasing a clear progression over time.
-
Household Size: Household dynamics play a pivotal role. Couples without children tend to have substantially higher savings, averaging around $103,140, while single-parent households under 55 average $19,320.
-
Race: There's a stark racial wealth gap reflected in savings. White households top the chart with an average of $80,040, while Black and Hispanic households have significantly lower averages at $13,370 and $15,710, respectively.
-
Education Level: Education directly impacts savings. Those with a college degree average around $116,010, whereas those with only a high school diploma sit at $23,380.
-
Homeownership: Homeowners tend to save more, with an average of $85,430 compared to renters, who average $16,930.
Understanding these trends aids in making informed financial decisions. It's also crucial to consider the disclaimer provided, highlighting that this data represents an average and may not reflect individual circ*mstances accurately. Additionally, the exclusion of investment balances and real property equity from these averages further underscores the complexity of financial portfolios.
Lastly, the article promotes various banking products offering competitive rates and perks, emphasizing the importance of selecting accounts aligned with individual financial goals and circ*mstances.
This detailed breakdown of savings by diverse factors serves as a compass for understanding broader financial landscapes and aids in making informed decisions regarding savings and banking choices.
