How the average american savings account is calculated

Different organizations measure savings in different ways. Some report the mean (average) balance across all accounts, others report the median (middle) balance, and some separate results by age, income, or household type. That matters because high balances for a small group can raise the average while the median stays low.

Authoritative sources to consult include the Federal Reserve and consumer finance sites that publish periodic surveys and studies. For example, Bankrate publishes annual data on typical savings balances, while the Federal Reserve reports household financial conditions in its consumer surveys (see the Federal Reserve and Bankrate links below for recent figures).

What the number tells — and what it doesn’t

• Useful as a snapshot: It gives a rough idea of national saving patterns.
• Not a goal: The average american savings account balance is not a personal target — your age, family status, income, and goals matter more.
• Skewed by outliers: Wealthier households can raise the average; median values often show a different picture.

Benchmarks by life stage and income

Instead of chasing a single national average, compare savings against realistic benchmarks for your situation:

• Emergency fund: Aim for 3–6 months of essential expenses (more if you’re self-employed or have unstable income).
• By age: Savings goals often grow with age. For example, many planners suggest having the equivalent of several months’ expenses saved by your 20s–30s, and larger balances as retirement approaches.
• By income: Higher incomes usually mean higher recommended savings, but also higher expenses — focus on replacing months of expenses, not matching an average balance.

For deeper reading on age-based and goal-based targets, see our guide on How Much Savings Should I Have At 35 and the Saving Money Guide.

How to use the average american savings account number in your planning

1. Contextualize: Check whether the figure is mean or median and whether it reports per-household or per-person balances.
2. Compare by cohort: Look for breakdowns by age or income — those are more actionable than an all-ages national average.
3. Set practical goals: Start with an emergency fund target, then build toward short-term goals (vacation, down payment) and long-term goals (retirement).

Practical steps to increase your savings

Whether you’re below the national average or above it, these steps help you build a resilient savings habit:

• Automate contributions: Set up automatic transfers to a savings account each payday.
• Use high-yield options: Put short-term cash in a high-yield savings account or money market to earn better interest.
• Trim recurring costs: Review subscriptions and services to free up monthly savings.
• Increase income: Consider a side hustle or freelance work — our Side Hustles Guide lists practical ideas.
• Pay down high-interest debt: Reducing debt with high interest frees up more cash for saving and investing.

Where to keep your emergency savings

Liquidity and safety are the priorities for an emergency fund. Common places to hold it:

• High-yield savings account — easy access and better rates than traditional banks.
• Online savings or money market accounts — competitive yields and FDIC insurance.
• Short-term certificates of deposit (CDs) laddered for slightly higher returns if you won’t need all funds immediately.

For long-term wealth growth beyond your emergency fund, consider our Investing Guide to learn how to balance saving and investing.

Next steps: Use the average as a guide, not a rule

The average american savings account number can be a helpful reference point, but your personal plan should be built on your expenses, risks, and goals. If you want structured lessons, check our Personal Finance Class for a step-by-step curriculum that covers saving, budgeting, and investing.

Quick resources and reputable sources

• Bankrate: Average savings balances — periodic consumer survey data.
• Federal Reserve: Consumer and household surveys — in-depth household financial data.

Conclusion

The average american savings account balance is informative but incomplete. Use it as one data point, then build a savings plan based on months of expenses, your personal goals, and reliable steps to grow income and reduce costs. For a full roadmap, our Personal Finance Class ties these ideas into an easy-to-follow program.