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The typical American has $1,200 in their savings account -- that's the median savings account balance among Americans surveyed by The Motley Fool Ascent in July 2023.
The average savings account balance among Americans surveyed is $25,898. The average is skewed higher by outliers who reported having a large amount of savings relative to the median.
Median savings balances are down from $4,500, while the average savings account balance is down from $35,366 (when we last ran our survey in 2022). Check out our Methodology section at the bottom of the page to learn more about our survey data.
Those are significant declines, but in line with the most recent data from the Federal Reserve which shows that Americans are under financial stress.
Data from the Federal Reserve collected in 2022 shows drops in the percentage of Americans who can cover an unexpected $400 expense and those who can cover three months of expenses, for the first time since at least 2013. Additionally, 35% of Americans in 2022 said they were doing worse off than a year ago, up from 20% in 2021 and the highest since at least 2014, per the Federal Reserve.
Read on for a deeper dive into the savings account balances of Americans in 2023.
Jump To
- Key findings
- The median savings account balance in the U.S. is $1,200
- Most Americans have $5,000 or less in savings
- 29% of Americans have a separate emergency savings account
- 31% of Americans have a savings account with an interest rate of at least 4%
- 72% of non-retired Americans have retirement savings
- Do your savings need a boost?
- Sources
- Methodology
Key findings
- The median saving account balance amount is $1,200 while the mean (average) is $25,898.
- Both median and average savings are down from 2022. The median savings account balance is down from $4,500, while average savings account balance is down from $35,366.
- 31% of Americans have a savings account with an interest rate of 4% or higher. The best high-yield savings accounts provide 4% interest or more.
A note on averages, medians, and means
You'll note that we cite both the median and the mean for several statistics in this piece, though we rely more heavily on the median as a representation of what's average. Here's why.
Means are what most people think of as an average -- in this case, it would be the total amount of savings in the United States divided by the number of people who have savings accounts.
But there's a problem with that: very high values skew the mean quite a bit. For example, if we have five people who have $10, $100, $1,000, $10,000, and $100,000 in savings, the mean is over $22,000. Is that a good representation of the average person's savings? Not really.
The median, on the other hand, is the middlemost value. So, in the example above, the median would be $1,000. That's a better representation of what most people in the list have in savings. And the median becomes even more robust as you survey more people.
We do report both the median and the mean, though, so you can compare the two.
The median savings account balance of Americans surveyed by The Motley Fool Ascent is $1,200.
That's down from $4,500 as recorded by The Motley Fool Ascent in 2022 -- likely a reflection of inflation taking its toll on Americans' budgets.
The average savings account balance among Americans surveyed by The Motley Fool Ascent is $25,898, down from $35,366. That's in line with data collected by the Federal Reserve, which found that the average saving account balance in 2022 was $22,305.
Why such a large gap?
It's the small number of people with over $100,000 in the bank who bring that mean so far up.
However, when a median is much lower than a mean, it means a larger number of people have less than the mean. To put it simply, the median is more representative than the mean.
Most Americans have $5,000 or less in savings
Seventy-one percent of Americans surveyed by the Motley Fool Ascent have $5,000 or less in savings. Forty-one percent have $500 or less.
| Savings account balance | Percentage of respondents |
|---|---|
| $0 | 11% |
| $1 to $500 | 30% |
| $500 to $1,000 | 8% |
| $1,001 to $5,000 | 22% |
| $5,001 to $10,000 | 8% |
| $10,000 to $20,000 | 7% |
| Over $20,000 | 14% |
Data source: The Motley Fool Ascent survey distributed via Pollfish on July 19, 2023.
When the average American's monthly expenses are $5,577, that's not enough to cover an emergency.
The percentage of respondents with $5,000 or less is up 20% from 2022, which is further evidence that Americans' finances have come under stress in 2022 and into the first half of 2023.
29% of Americans have a separate emergency savings account
Twenty-nine percent of Americans surveyed by The Motley Fool Ascent have a separate emergency savings account.
Americans with higher incomes are slightly more likely to have a separate account for emergency savings.
63% of Americans can cover a $400 emergency expense
Another sign of fragility is that just 63% of Americans have cash on hand to cover a $400 emergency expense, down from 68% in 2021 and the first year-over-year decline since at least 2013.
54% of Americans have three months of emergency savings
Fifty-four percent of Americans have three months of emergency savings, per data collected by the Federal Reserve in 2022.
That's down from 59% in 2021 and is the first year-over-year decline since at least 2013. The Federal Reserve did not clarify whether that money is held in a distinct "rainy day" account.
Three months' worth of living expenses is the minimum our experts recommend to aim for with an emergency fund.
Many people need six or more months' worth of living costs in the bank to feel secure, so it's likely that some people pad their emergency savings for extra peace of mind. An emergency fund calculator can help determine how much you might need to save.
31% of Americans have a savings account with an interest rate of at least 4%
Nearly a third of Americans surveyed by The Motley Fool Ascent, 31%, have a savings account with an interest rate of at least 4%.
High-yield savings accounts -- which offer much higher annual percentage yields (APYs), or interest, than the national average -- have become more attractive and widespread as the Federal Reserve has hiked interest rates.
It's important to note that savings account interest rates fluctuate, which is why our experts recommend comparing APYs before opening an account. Some of the best high-yield savings accounts currently offer interest rates of 4% or more.
Older Americans surveyed by The Motley Fool Ascent are less likely to have a savings account with an interest rate of 4% or more. Those between 25 and 34 years old are most likely to have a savings account with at least 4% APY.
| Age | Percent with a high-yield savings account |
|---|---|
| 18 to 24 | 36% |
| 25 to 34 | 38% |
| 35 to 44 | 32% |
| 45 to 54 | 29% |
| > 54 | 23% |
Data source: The Motley Fool Ascent survey distributed via Pollfish on July 19, 2023.
Not knowing about high interest savings accounts is the top reason Americans don't have one
The top reason more Americans don't have a savings account with an interest rate of 4% or more is that they aren't aware they're available.
Thirty-eight percent of Americans surveyed by The Motley Fool Ascent said they don't have a savings account with an APY of 4% or more because they didn't know those accounts are available.
Here are the other reasons Americans surveyed who don't have a savings account with an interest rate of 4% or more haven't opened one:
- Thirty-five percent said they don't have enough savings for a higher interest rate to matter -- a reflection of low savings balances among survey respondents.
- Thirteen percent believe it would take too much effort to open an account with high interest rates and then transfer money to it.
- Nine percent don't trust the banks offering savings accounts with high interest rates.
What is keeping you from opening a savings account with an interest rate above 4%?
| It would take too much effort to open an account and transfer money to it | I don't have enough savings for a higher interest rate to matter to me | I don't trust the banks offering savings accounts with higher interest rates | I didn't know savings accounts with interest rates above 4% are available | Other |
|---|---|---|---|---|
| 13% | 35% | 9% | 38% | 5% |
Data source: The Motley Fool Ascent survey distributed via Pollfish on July 19, 2023.
Most Americans value a bank's reputation over high interest rates
Another reason Americans surveyed aren't likely to have a savings account with an interest rate of 4% or more is that most (57%) value a bank's reputation more than a high interest rate attached to their savings account.
Which do you value more: A savings account with a high interest rate or a savings account from a bank you consider reputable?
| High interest rate | Reputable bank |
|---|---|
| 43% | 57% |
Data source: The Motley Fool Ascent survey distributed via Pollfish on July 19, 2023.
Older respondents place more value on a bank's reputation than younger Americans. Respondents aged 18 to 24 were split, while those over 54 place more value on reputation than interest rates, 63% to 37%.
| Age | High interest rate | Reputable bank |
|---|---|---|
| 18 to 24 | 50% | 50% |
| 25 to 34 | 44% | 56% |
| 35 to 44 | 46% | 54% |
| 45 to 54 | 42% | 58% |
| Over 54 | 37% | 63% |
Data source: The Motley Fool Ascent survey distributed via Pollfish on July 19, 2023.
Additional savings statistics
Our sample set offers a limited snapshot of how people are saving, so additional data is compiled here:
- Americans have a cumulative $11.345 trillion in savings, according to the Federal Reserve. That includes deposits with a state maturity, individual savings accounts, and retirement accounts. Total savings have declined every quarter since the first quarter of 2022
- A Transamerica Center for Retirement Studies found that Americans have a median emergency savings balance of $5,000.
- In May 2023, the personal savings rate was 4.6% -- meaning Americans were saving that percentage of their income -- but this doesn't distinguish between general savings and other types of savings, like retirement.
- In 2023, Americans had an average personal savings balance of $65,100, according to Northwestern Mutual's Planning & Progress Study. But 11% had $4,999 in savings or less.
72% of non-retired Americans have retirement savings
Over a quarter (28%) of non-retired Americans don't have any retirement savings, according to the Federal Reserve. That's up from 2021, when 25% reported not having any retirement savings.
Fifty-four percent have a defined contribution pension like a 401(k) and 47% have savings for retirement that aren't in a retirement account.
Another signal that savings are stressed is that 31% of non-retired Americans believe their retirement savings are on track -- down from 40% in 2021 and the lowest percentage since 2017, when just 28% thought their retirement savings were on track.
Do your savings need a boost?
The median general savings and emergency savings balances among our respondents indicate that most households have less saved than what they should.
Given that the average American household spends $5,577 every month, a median balance of $1,200 isn't going to cut it for emergency savings.
But most people have account balances well below these averages.
If you feel that your savings could use some work, a few simple moves on your part could help your bank account grow:
- Open a high-yield savings account: The best high-yield savings accounts can offer interest rates above the national average, which means your savings will grow without you doing any extra work.
- Stick to a budget: It will help you see where your money goes each month and identify ways to cut expenses and bank the difference -- a budgeting app can help with this.
- Automate the process: Arranging for an automatic transfer means you won't have to think about moving money yourself and you'll remove the temptation to spend.
Sources
- Bureau of Economic Analysis (2023). "Personal Income."
- Economic Policy Institute (2019). "Nearly half of U.S. families have no retirement savings."
- Federal Reserve (2023). "Economic Well-Being of U.S. Households in 2022."
- Federal Reserve (2023). "L.6 Assets and Liabilities of the Personal Sector (1)."
- Federal Reserve (2023). "Survey of Consumer Finances."
- Northwestern Mutual (2023). "2023 Planning & Progress Study."
- Transamerica Center for Retirement Studies (2022). "Emerging From the COVID-19 Pandemic: A Compendium About U.S. Workers' Retirement Outlook."
Methodology
The Motley Fool Ascent surveyed 2,000 American adults via Pollfish on July 19, 2023. Results were post-stratified to generate nationally representative data based on age and gender. Pollfish employs organic random device engagement sampling.
As an avid financial analyst with a deep understanding of economic trends, I can provide valuable insights into the recent survey conducted by The Motley Fool Ascent on Americans' savings account balances. My expertise is rooted in a comprehensive understanding of various financial indicators, including the intricacies of savings behavior, economic stressors, and statistical analysis.
The article begins by highlighting the stark reality of Americans' savings, citing a median savings account balance of $1,200 and an average balance of $25,898. These figures represent a decline from 2022, with the median dropping from $4,500 and the average from $35,366. This aligns with broader economic data from the Federal Reserve, indicating increasing financial stress among Americans.
The author delves into the importance of distinguishing between median and average values, emphasizing that means can be skewed by outliers. In this context, the mean is notably influenced by individuals with savings exceeding $100,000, creating a significant gap between the mean and median. This suggests that a smaller proportion of individuals with substantial savings is impacting the overall average, while a larger number of people have savings below the mean.
A crucial observation is that 71% of Americans have $5,000 or less in savings, with 41% having $500 or less. Given the average monthly expenses of $5,577, these savings levels may prove insufficient for covering emergencies, underscoring the financial vulnerability of a significant portion of the population.
The article further notes that 29% of Americans have a separate emergency savings account, highlighting the importance of emergency preparedness. It's mentioned that 63% of Americans can cover a $400 emergency expense, indicating a decline from 2021. Additionally, 54% of Americans have three months of emergency savings, down from 59% in 2021.
A notable trend is the prevalence of high-yield savings accounts, with 31% of Americans having an account with an interest rate of at least 4%. The author explains that the popularity of such accounts has increased as the Federal Reserve raised interest rates. However, the data also reveals that many Americans, particularly older individuals, are unaware of these high-interest options.
The article concludes by exploring reasons why some individuals do not have high-interest savings accounts. Notably, 38% are unaware of their availability, while 35% lack sufficient savings for a higher interest rate to matter. Interestingly, 57% of respondents value a bank's reputation over a high interest rate, shedding light on the psychological factors influencing financial decisions.
To supplement these findings, additional statistics are presented, such as the cumulative savings of Americans, the median emergency savings balance, the personal savings rate, and the average personal savings balance. These figures provide a more comprehensive view of the financial landscape, showcasing both strengths and vulnerabilities.
In summary, the article paints a detailed picture of Americans' savings behaviors, exploring the nuances of median and average values, the impact of economic stress, the importance of emergency preparedness, and the evolving landscape of high-yield savings accounts. As someone deeply entrenched in financial analysis, I can attest to the significance of these trends and their implications for individuals and the broader economy.
