How much money does the average person have in their bank account?
The median balance in American transaction accounts is $8,000, according to the Federal Reserve's 2023 Survey of Consumer Finances (SCF). Transaction accounts include checking, savings and money market accounts and prepaid debit cards. The average value Americans hold in transaction accounts is $62,410.
The median transaction account balance in the U.S. is between $8,000, potentially insufficient for a few months without income. Generally, households with older members, higher income, and higher education levels have higher savings, but all should aim to save at least 15 percent of pre-tax income.
For the emergency stash, most financial experts set an ambitious goal at the equivalent of six months of income. A regular savings account is "liquid." That is, your money is safe and you can access it at any time without a penalty and with no risk of a loss of your principal.
Checking accounts keep cash easily accessible and are designed to cover short-term expenses, like rent and groceries. It's a common rule of thumb to keep one to two months' worth of expenses in a checking account, but many Americans aren't meeting this benchmark.
Banks tend to keep only enough cash in the vault to meet their anticipated transaction needs. Very small banks may only keep $50,000 or less on hand, while larger banks might keep as much as $200,000 or more available for transactions. This surprises many people who assume bank vaults are always full of cash.
The average American has $65,100 in savings — excluding retirement assets — according to Northwestern Mutual's 2023 Planning & Progress Study. That's a 5% increase over the $62,000 reported in 2022.
As of May 2023, more than 1 in 5 Americans have no emergency savings. Nearly one in three (30 percent) people in 2023 had some emergency savings, but not enough to cover three months of expenses. This is up from 27 percent of people in 2022. Note: Not all percentages total 100 due to rounding.
You should keep enough money in checking to cover your monthly bills with some wiggle room – about a month of expenses. That's much lower than the three to six months' worth of expenses you should keep in your savings account for emergencies. Read: Best Checking Accounts.
The government has no regulations on the amount of money you can legally keep in your house or even the amount of money you can legally own overall. Just, the problem with keeping so much money in one place (likely in the form of cash) — it's very vulnerable to being lost.
How much do Americans have in savings? Overall, Americans have a median of $5,300 and an average of $41,800 in savings, according to the Federal Reserve.
How many Americans live paycheck to paycheck?
A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
American households, on average, had $41,600 in savings, based on figures from the Federal Reserve in 2019. In 2022, that amount rose to about $62,500–which not only includes savings, but also assets from checking, money market accounts prepaid debit cards and more.
How much is too much savings? Keeping too much of your money in savings could mean missing out on the chance to earn higher returns elsewhere. It's also important to keep FDIC limits in mind. Anything over $250,000 in savings may not be protected in the rare event that your bank fails.
Source: NerdWallet survey conducted online March 30-April 3, 2023, by The Harris Poll among 2,035 U.S. adults. Savers say they typically set aside $985, on average, in a normal month, according to the survey. The median amount reported is $250.
Cash drawer limits help prevent theft, robbery, fraud, and errors. They also ensure that tellers have enough cash to serve customers without delays or shortages. Cash drawer limits vary by bank, branch, and teller, but they usually range from $3,000 to $10,000.
Nearly one in four (22%) of U.S. adults have no emergency savings at all, Bankrate found—the second-lowest percentage in 13 years of polling. That's especially bad news given that most Americans would need at least six months of emergency savings to feel comfortable day-to-day.
| Income percentage | Account balance |
|---|---|
| 60-79.9% | $7,924 |
| 80-89.9% | $13,434 |
| 90-100% | $43,631 |
| National average | $8,814 |
Fidelity's guideline: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement.
According to U.S. Census Bureau data, 50% of women and 47% of men between the ages of 55 and 66 have no retirement savings.
Up to a third (34%) of adults had either no savings (or less than £1,000) in a savings account. Around six in 10 (61%) UK adults save money either every or most months.
Is it bad to have no money in savings?
The lack of cash in either savings or checking accounts suggests that many Americans are living paycheck to paycheck. This leaves them vulnerable to unexpected expenses, underscoring the importance of having an emergency fund, if they're able to build one.
While you're working, we recommend you set aside at least $1,000 for emergencies to start and then build up to an amount that can cover three to six months of expenses. When you've retired, consider a cash reserve that might help cover one to two years of spending needs.
Key takeaways. Reasons people keep cash at home include emergency preparedness, financial privacy concerns and mistrust of banks. It's a good idea to keep enough cash at home to cover two months' worth of basic necessities, some experts recommend.
There is no specific limit or threshold that would cause the IRS to tax it. That being said, ant cash deposits of $10,000 or more would be reported by the bank in a Currency Transaction Report (CTR) to FinCEN, an arm of the Treasury Department.
Absolutely! You can buy a house with cash. Oftentimes, it's more appealing to the seller because it promises a faster and simpler closing. Buyers can benefit from the leg up in a competitive housing market, avoid mortgage fees and interest rates and save money in the long run.
