What the Average American Has in Their Savings Account — and How You Compare

Knowing how much the average American has in their savings account can help you gauge the state of your finances compare to your peers.

Everyone’s situation is unique, but knowing where others with similar time horizons stand can help you determine whether you’re on track to meet your financial goals.

Average and median savings by age

The Federal Reserve’s most recent Survey of Consumer Finances, which is data from 2022, shows how much the average American has in their transaction account by age.

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 mean and median vary so widely

Mean or average figures are greatly influenced by the ultra-wealthy. Outliers have more of an impact on a group of numbers' mean than their median, which explains why the mean figures above are so much higher than their median counterparts. The median balance may be more useful for you.

If 10 people have $5,000 each and one walks in with $5 million, the median balance is still $5,000. However, the mean balance in this same scenario is roughly $459,000, demonstrating how one wealthy individual can influence the average tremendously.

What else to consider

Your savings account doesn’t tell the whole story. You also have to factor in your investment accounts — including 401(k)s, individual retirement accounts (IRAs) and taxable brokerage accounts — home equity and other assets.

The median balance may also be higher or lower than your specific savings goals, depending on your lifestyle and situation. Some people need larger emergency funds because they have unreliable income or health issues, others may want to spend a lot of money on traveling. Some people want to hold on to a large house when they retire while others are preparing to downsize to save money.

Where to keep your cash

While it’s common for people to keep money in their bank accounts to minimize risk, you can move your cash into a high-yield savings account for higher returns on your idle cash than you’d see in a traditional savings account. Some of these accounts have APYs above 4%.

But it can be risky to keep a lot of cash even in a high-yield savings account. Investing in the stock market offers much higher potential growth, and can help your savings beat inflation.