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.