What is a typical US bank balance? Data explained

How much cash do Americans keep in the bank, and where does it stand?

Have you ever wondered how your bank balance compares to others? Federal Reserve data reveals the savings the average American has by age, family type, and education.

According to the Federal Reserve’s Survey of Consumer Finances, the amount held in the bank accounts of all US households in 2022 (the latest data available) was $8,000. This amount is held in transaction accounts, which include checking, savings, money market, and cash brokerage accounts, as well as prepaid debit cards. (Certificates of deposit and retirement accounts are not part of this group.)

But that $8,000 figure only tells part of the story. Average balances vary widely by age, family type, and education.

Bank balances by age: How do you compare?

The Fed looks at multiple age groups in its survey:

• Under 35
• 35-44
• 45-54
• 55-64
• 65-74
• 75 or older

In the most recent survey (2022), more than 98% of Americans across all age groups reported having money in bank accounts. But average balances varied sharply by age. For example, the median income for people under 35 was $5,400, while Americans 75 and older had a median income of $10,000.

Bank balances by household type: where are they located?

In its survey, the Fed uses five breakdowns of family structure:

• Single with child(ren)
• Single, no child, age less than 55 years
• Single, no child, age >=55
• Couple with child(ren)
• Couple, no child

Median bank account values ​​varied significantly between individuals and couples. In 2022, single adults over 55 with no children had the highest average balance among individuals ($4,300). For married couples, those without children had the highest average ($16,000).

Bank balances by education level: How do you stack up?

The Fed survey includes four options for education level:

• No high school diploma
• High school diploma
• Some college
• University degree

The survey results indicate a strong link between educational level and average bank balances, much more than age or family structure. High school graduates report average savings three times higher than those without a college degree. College graduates had more than four times the average balance of those with some college education but no college degree.

Want a bigger bank balance? Open a high-yield account

No matter how much cash you have in the bank, it’s smart to make sure it’s making you more money. Putting some money in a high-yield savings account, money market account, or certificate of deposit (CD) can help boost your savings balances.

A high-yield savings account is among the easiest places to deposit your money, giving you access to your money anytime you need it. Since the Annual Percentage Yield (APY) of different banks varies widely, find the one that suits you best. Our list of the best high-yield savings accounts includes several options that pay at least 4.30% annual yield, with the best rate being 5.00% annual yield. Just be aware that interest rates on savings accounts are variable, which means the bank can change your APY at any time without notice.

Money market accounts are similar to savings accounts and offer check-writing capabilities. If this is an important feature to you, check out the best money market accounts — many of which currently offer APYs of 4.25% or better, with a top rate of 4.40% APY. But as with savings accounts, APYs can change in the money market.

If you don’t need access to your money right away, a certificate of deposit (CD) is a safe option with a big advantage: a fixed rate that you can hold for months or years. Your bank or credit union will guarantee a specific APY for periods generally ranging from 3 months to 5 years in exchange for keeping your money in the CD. You can now decide how much money you’ll earn when the CD matures, and some of the best CD rates — now as high as 4.45% APY — are good through 2026 or later, regardless of what happens to short-term interest rates. Just be sure to choose your term carefully, as you will be subject to an early withdrawal penalty if you cash out before the due date.