How Much Cash Americans Keep in the Bank—And Where You Stand

Ever wondered how your bank balance compares to others? Federal Reserve data reveals what savings a typical American has by age, household type, and education.

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

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

Bank Balances by Age: How Do You Compare?

The Federal Reserve 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 every age group reported having money in bank accounts. But median balances varied sharply by age. For instance, those under 35 had a median of $5,400, while Americans 75 and older held a median of $10,000.

Bank Balances by Household Type: Where Do You Fall?

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

• Single With Child(ren)
• Single, No Child, Age <55
• Single, No Child, Age >=55
• Couple With Child(ren)
• Couple, No Child

Bank account median values varied widely between singles and couples. In 2022, single adults over 55 with no children had the highest median balance among individuals ($4,300). For couples, those without children held the highest median balance ($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
• College Degree

Survey results suggest a strong link between educational level and median bank balances, much more than age or family structure. High school graduates reported median savings more than three times higher than those without a diploma. College graduates had over four times the median balance of those with some college education but no degree.

Want a Bigger Bank Balance? Open a High-Yield Account

However much cash you have in the bank, it’s smart to make sure it’s earning more for you. Putting some money into 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 cash anytime you need it. Because the annual percentage yield (APY) from different banks varies widely, look for one that works for you. Our list of the best high-yield savings accounts includes several options that pay at least 4.02% APY, with the best rate being 5.00% APY. Just be aware that rates on savings accounts are variable, meaning the bank can change your APY at any time without warning.

Money market accounts are similar to savings accounts and offer check-writing abilities. If that’s an important feature for you, you can check out the best money market accounts—and several currently offer APYs of 3.20% or better, with a top rate of 4.00% APY. But as with savings accounts, money market APYs can change.

If you don’t need to access your money immediately, a certificate of deposit (CD) is a safe option with a big perk: a fixed rate that you can lock in for months or years. Your bank or credit union will guarantee a set APY for terms generally ranging from 3 months to 5 years in exchange for you keeping your money in the CD. You’re able to determine now how much money you’ll earn when the CD matures, and some of the best CD rates—now up to 4.50% APY—are good into 2026 or beyond, regardless of what happens to interest rates in the short term. Just be sure to pick your term carefully, as you’ll be hit with an early withdrawal penalty if you cash out before the maturity date.

When preparing for retirement, you’re probably wondering, will I have enough? To answer this, you’ll need to know a few key numbers. First, how much money will you need per month in retirement? And then, how much money will you need to save in total? Read on to learn how to crunch these numbers and get the answers you’re looking for.

How Much Do You Need per Month in Retirement?

First, we need to calculate how much money you’ll need per month in retirement.

If you want to continue the lifestyle you’re living now, just multiply your current income by 75%.

That’s because your costs in retirement will likely be about 70% to 80% of the costs you have now.

So if you currently make the median income in the U.S. per year ($83,730), plan on spending around $62,800 per year, or around $5,230 per month, in retirement.

How Much Do You Need to Save for Retirement?

Now that we know how much you’ll need per year and per month in retirement, we can calculate how much you’ll need to save in total.

There’s a rule of thumb called the 4% rule. It says that for a 30-year retirement, you can safely withdraw 4% of your retirement savings per year, adjusted for inflation each year.

Let’s use the numbers we used above. Someone with the median income in the U.S. ($83,730) can plan on spending around $62,800 per year in retirement. Using the 4% rule, we divide $62,800 by 4%, resulting in about $1.57 million. That’s how much you’ll need to save in total.

If we use 3.7% instead of 4%, we divide $62,800 by 3.7%, resulting in about $1.7 million. That’s a more conservative estimate of how much you’ll need to save in total.

Factors that Influence Your Spending in Retirement

Your income needs may fluctuate as you move through retirement. You might spend more in early retirement because you’ll be relatively active and enjoying your new lifestyle. At some point, though, you might settle down. During this middle stage of retirement, your spending might decrease. In late retirement, your spending might increase as you face various medical bills and the cost of care.

Your spending will also depend on your location and lifestyle. For instance, if you dream of traveling in retirement, you’ll likely spend more than others who prefer to stay close to home. Retirees who live in certain areas will likely pay more for housing and care, which means they’ll need more income in retirement than someone who lives in a more affordable area.

The Bottom Line

Planning for retirement takes a little math. First, assume that you’ll spend about three-quarters (75%) of your current monthly income in retirement. Then use the 4% rule to discover how much you’ll need to save for retirement in total. Tweak the formula to suit your needs and consider your retirement goals, as well as the cost of living in your area. The more prepared you are, the more you can sit back and enjoy your retirement.

Earnings from Nvidia, the world’s most valuable company, and President Donald Trump’s State of the Union address take center stage this week.

Quarterly reports from chipmaking powerhouse Nvidia have been a key driver of the AI trade. Other key firms are on the earnings calendar, with reports scheduled for tech firms Salesforce and Dell, hardware retailers Home Depot and Lowe’s, and a slate of Canadian banks.

Trump’s comments will come after the Supreme Court last week struck down a key part of his tariff policies and economic growth showed signs of slowing. Several Fed speakers are lined up, potentially highlighting the division in the central bank over the future path of interest rates.

Read to the bottom for our calendar of key events—and one more thing.

Nvidia Earnings Come Amid Scrutiny of Big Tech AI Spending

After setting an upbeat tone for the AI trade with its last report, Nvidia’s earnings on Wednesday come as investors continue to raise worries about Big Tech spending. CEO Jensen Huang could speak to the “through the roof” demand for the firm’s AI-specialized chips and provide updates on Nvidia’s access to China. 

Media firms Paramount Skydance and Warner Bros. Discovery are reporting amid ongoing takeover drama. Warner Bros. Discovery said it was reopening its consideration of a takeover offer from Paramount after it had previously said it would accept the bid from streaming giant Netflix. 

Home improvement retailers Home Depot and Lowe’s are reporting as a housing market slump has hurt sales at the hardware sellers. Traders will also be looking for updates from tech firms Snowflake, CoreWeave, Workday, Dell, and HP.

Berkshire Hathaway’s report on Saturday is the first since Warren Buffett retired from the firm, handing the reins to new CEO Greg Abel.

Trump Speech, Fed Speakers Highlight Economic Calendar

President Trump’s annual State of the Union speech on Tuesday comes on the heels of his administration’s loss in a court challenge over his tariff policies. Trump could use the speech to further lay out his response to the decision, as well as discuss other key economic policies, including housing market reforms and tax policies.

With questions remaining about the path of interest rates amid softening inflation trends and robust labor market data, comments this week from Fed Governor Christopher Waller could provide more insight from an advocate of steeper reductions in borrowing costs. Other Federal Reserve officials are also on the speaking calendar.

The S&P Case-Shiller home price index is on deck as high prices contribute to affordability pressures in the housing market. Wholesale inflation data on Friday follows recent consumer inflation reports that showed price pressures easing more than economists anticipated.

Quick Links: Recap Last Week’s Trading | Read Investopedia’s Latest News

This Week’s Calendar

Monday, Feb. 23

• Factory orders (December)
• Federal Reserve Officials Speaking: Fed Governor Christopher Waller
• Key Earnings: Dominion Energy (D), Oneok (OKE)

Tuesday, Feb. 24

• President Donald Trump delivers State of the Union address
• More Data to Watch: S&P Case-Shiller home price index (December), Wholesale inventories (December), Consumer confidence (February)
• Federal Reserve Officials Speaking: Fed Governor Lisa Cook, Fed Governor Christopher Waller, Boston Fed President Susan Collins, Richmond Fed President Tom Barkin, Chicago Fed President Austan Goolsbee, Atlanta Fed President Raphael Bostic
• Key Earnings: Home Depot (HD), Bank of Nova Scotia (BNS), American Tower (AMT), Keurig Dr Pepper (KDP), Workday (WDAY), HP (HPQ)

Wednesday, Feb. 25

• Key Earnings: Nvidia (NVDA), TJX (TJX), Salesforce (CRM), Lowe’s (LOW), Bank of Montreal (BMO), Synopsys (SNPS), Medline (MDLN), Snowflake (SNOW), Agilent Technologies (A), Paramount Skydance (PSKY)

Thursday, Feb. 26

• Initial jobless claims (Week ended Feb. 21)
• Federal Reserve Officials Speaking: Fed Vice Chair Michelle Bowman
• Key Earnings: Royal Bank of Canada (RY), Toronto Dominion (TD), Intuit (INTU), Canadian Imperial Bank (CM), Dell (DELL), Warner Bros. Discovery (WBD), Baidu (BIDU), CoreWeave (CRWV)

Friday, Feb. 27

• Producer price index (January)
• More Data to Watch: Construction spending (December, November), Chicago Business Barometer (February)

Saturday, Feb. 28

One More Thing

Are you in danger of losing your job to AI? It could depend on where you live. Investopedia’s Trina Paul has more on which workers are best positioned to adapt to AI-related job displacement.