How Much Americans Typically Keep in Savings Accounts — and Where You Stand

Looking at how much the typical American keeps in a savings account can give you a useful benchmark for your own finances.

Although everyone’s financial picture is different, comparing yourself with people at a similar stage of life can help you judge whether you are moving toward your goals.

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Average and median savings by age

The Federal Reserve’s Survey of Consumer Finances, based on 2022 data, shows how much Americans hold in transaction accounts by age group.

Mean balance in savings account by age:

• Less than 35: $20,540

• 35-44: $41,540

• 45-54: $71,130

• 55-64: $72,520

• 65-74: $100,250

• 75 or older: $82,800

Median balance in savings account by age:

• Less than 35: $5,400

• 35-44: $7,500

• 45-54: $8,700

• 55-64: $8,000

• 65-74: $13,400

• 75 or older: $10,000

Why the average and median differ so much

Average, or mean, numbers are heavily affected by very wealthy outliers. That is why the mean figures above are far higher than the median values. For many people, the median is a more practical comparison point.

For example, if 10 people each have $5,000 and one person has $5 million, the median is still $5,000. But the mean jumps to about $459,000, showing how one large balance can distort the average.

Other factors to keep in mind

Savings balances do not tell the full story. You should also consider investment accounts such as 401(k)s, IRAs and taxable brokerage accounts, along with home equity and other assets.

Your own target may also be higher or lower than the median, depending on your circumstances and priorities. Some households need bigger emergency reserves because of unstable income or health concerns, while others may plan to spend more on travel. Some may want to keep a larger home in retirement, while others intend to downsize to reduce costs.

Where to keep your cash

Many people leave money in bank accounts to keep it safe, but moving cash into a high-yield savings account can generate better returns than a traditional savings account. Some of these accounts offer APYs above 4%.

Still, holding too much cash in savings can limit growth. Investing in the stock market may offer much higher long-term potential and help your money outpace inflation.