What is the average bank account balance in the us

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Americans were asked their current balance in a single savings account — that with the highest balance, if they have more than one.

Some Americans with savings accounts reported significantly higher balances compared with others, so the average savings by age is higher than the median, according to the survey.

You can start with small deposits and see your savings grow over time. If you are in this age group you may be further along in your career and making more money than you were just a decade ago, or you may have had more time to take advantage of compound interest.

This amount is higher than for younger age groups, likely because you have had more years to save and more time to take advantage of compound interest. At the same time, you may also be focused on retirement planning — after age 50, you can make catch-up contributions to a retirement account, for example.

Just remember to keep your cash cushion funded. Whatever your bank balance, consider putting your savings in a high-rate account. It can help you earn more interest over time. Check out NerdWallet's list of best savings rates this month. If you have entered retirement or plan to retire soon, you may be able to tap into retirement accounts for living expenses. But having a savings account is still important when unbudgeted expenses arise. That makes sense, as wealth inequality in America means white Americans also tend to earn more and have a much greater average net worth.

But they don't have the highest average or median checking account balances. Those are held by Americans in the "Other Races" category. The average household checking account balance varies quite a bit by the age of the reference person, but the same cannot be said for the median balance. College graduates end up with considerably more in their checking accounts than other groups.

That's to be expected, considering higher levels of education are linked with higher incomes. There's a large difference in average balances between Americans who are either married or living with a partner and those who aren't. The fact that couples who are married or living together are more likely to combine finances is a partial explanation.

Couples with joint bank accounts often have more in their accounts than people who are single, since they could have multiple incomes as well as more bills to pay each month. But that doesn't completely account for it. Americans who are married or living with a partner have more than twice the average and median checking account balance of those who aren't married or living with their partner. The general consensus on how much money to keep in a checking account is enough to cover one or two months' worth of expenses.

You need enough to cover your bills and avoid overdrafts if there are any unexpected charges. Beyond that, there isn't any reason to have an excessive amount in your checking account. Savings, investment, and retirement accounts all offer a greater potential return. Based on that recommendation, the average American may not have enough in their checking account. Unfortunately, this is even more of a problem for low-income Americans, women, Black Americans, and Hispanic Americans.

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Mortgages Top Picks. Checking account balances are lower than the median and average savings account balances in the U. To get a better idea of where you stand, you can compare the median checking account balance filtered by demographic. As Americans get older, they tend to have more in their checking accounts — until they reach a certain threshold.

Both average and median checking account balances rise consistently until age 75, when they decrease. This is likely because lifestyles hit a peak during the end of your career, while rent and expenses tend to remain lower in early adulthood and retirement.

For a clearer picture, check out the full breakdown of median checking account balance by age:. Unsurprisingly, Americans who make more money keep more in their checking accounts. The difference grows more distinct with every income bracket. The numbers seem exceptionally high for checking accounts, but could be a reflection of take-home pay deposited directly into checking.

They likely utilize alternative methods like prepaid cards and money orders. You should always do your best to live within your means, while taking advantage of the best financial instruments at your disposal. Check out the full breakdown of median checking account balance by income:.

The difference grows even larger when comparing median checking account balances.