Deposit Distribution

Part
01
of two
Part
01

Retail Savings Account Deposit Distribution

Older Americans have more money in their savings accounts, but this can vary depending on if the households are composed of couples and singles with or without children. Also, people in the higher income brackets have more money in their savings accounts.

Individuals

Median Savings account balance by age and income

  • Median balance of savings accounts in 2016 by age:
1. Under 35: $2,600
2. 35-44: $3,800
3. 45-54: $4,100
4. 55-64: $5400
5. 65-74: $8,000
6. 75 and older: $10,000
  • People in the lower income brackets are less likely to have a savings account. People generating less than $25,000 may only have $500 in savings. People generating more than $160,000 have a median of $50,000 in savings.
  • Median balance of savings accounts in 2016 by percentile of income:
1. Bottom 20% — $600
2. 20th to 39.9th percentile — $1,700
3. 40th to 59.9th percentile — $3,800
4. 60th to 79.9th percentile — $8,200
5. 80th to 89.9th percentile — $18,700
6. Top 10% — $62,000

Households

Savings Account Balances

  • Households of older individuals tend to have balances in savings accounts that are higher.
  • The average savings account balance in 2016 by age
1. Under 35 — $8,362
2. 35-44 — $20,839
3. 45-54 — $30,441
4. 55-64 — $45,133
5. 65-74 — $54,089
6. 75 and older — $42,291
  • Male-headed households averaged $34,942 in 2016 while female-headed households averaged $16,986.

Savings Account Balance by Household type and age

  • Singles without children in 2016, aged 35 and under, had an average of $3,000 in a savings account, 35-44 had an average of around $4,000, 45-54 had an average of just below $6,000, 55-64 had an average of just below $7,000, 65-74 had an average of just above $7,000, and 75 and older an average of $10,000.
  • Singles with children in 2016, aged 35 and under, had an average of just above $1,000 in a savings account, 35-44 had an average of around $2,500, 45-54 an average of just above $4,000, 55-64 an average of $7,000, 65-74 an average of $6,500, and 75 and older an average of $7,000.
  • Couples with children in 2016, aged 35 and under, had an average of around $3,800 in a savings account, 35-44 had an average of around $10,200, 45-54 had an average around $15,800, 55-64 had an average around $17,800, 65-74 had an average around $13,000, and 75 and older had an average around $9,000.
  • Singles without children in 2016, aged 35 and under, had an average of just above $4,600 in a savings account, 35-44 had an average of around $5,200, 45-54 had an average of around $11,500, 55-64 had an average of around $15,800, 65-74 had an average of above $15,000, and 75 and older had an average of $16,000.

Average and median savings by income for all households and households with savings

1. Bottom 20% percentile — $8,790
2. 20th to 39.9th percentile — $29,330
3. 40th to 59.9th percentile — $66,390
4. 60th to 79.9th percentile — $134,920
5. 90th to 100th percentile — $969,790
6. Top 1% — $2,517,270
1. Bottom 20% — $22,800
2. 20th to 39.9th percentile — $47,350
3. 40th to 59.9th percentile — $83,440
4. 60th to 79.9th percentile — $149,870
5. 80th to 89.9th percentile — $997,890
6. Top 10% — $2,551,390
1. Bottom 20% — $0
2. 20th to 39.9th percentile — $0
3. 40th to 59.9th percentile — $34,310
4. 60th to 79.9th percentile — $77,680
5. 80th to 89.9th percentile — $157,850
6. Top 10% — $1,134,650
1. Bottom 20% — $1,890
2. 20th to 39.9th percentile — $10,030
3. 40th to 59.9th percentile — $23,480
4. 60th to 79.9th percentile — $59,000
5. 80th to 89.9th percentile — $536,220
6. Top 10% — $1,569,400

Other relevant Information

Savings Account Goals in 2019

  • GoBankingRates surveyed 1,000 Americans to determine their banking habits. In a survey 48% of respondents have savings goal for emergencies in a savings account.
  • 52% of Americans have a savings account.
  • The second popular savings' goal was between saving for retirement and saving more money in a regular savings account.
  • 50% of those between 18 to 24, 37% of those between 25 to 34 year old, 40% of those between 35 to 44, 30% of those between 45 to 54, 26% of those between 55 to 64, and 27% of those 65 and over want to save more money in a regular savings account.
  • 32% of men and 34% of women want to save more money in a regular savings account.
  • Americans would open savings account with good rates and low fees. These features are more popular with younger adults. Older adults (55 and older) said more often that they do not want to open a new savings bank account.

Your Research team applied the following Strategy:

Most of the data presented in this brief regarding savings account was extrapolated from the Survey of Consumer Finances from the U.S. Federal Reserve which is updated every three years and has data most recently from 2016. Therefore, most of the sources are dated to be 2016. For recent data, we examined news websites like CNBC and banking industry analysis websites such as Bankrate, SmartAsset, ValuePenguine, and GoBankingrates. One of the website called Magnify Monkey, has March 2019 statistics which adjusted the 2016 values and fund flows, further indicating that the most recent data available is from 2016.
Part
02
of two
Part
02

Retail Checking Account Deposit Distribution

The age group with the largest average checking account balance in 2016 was 75 and older ($15,803). The income level with the largest average checking account balance in 2016 was $160,000 and above ($42,253).

AVERAGE CHECKING ACCOUNT BALANCES BY AGE GROUP

  • In 2018, 88% of baby boomers have free checking accounts, while only 69% of millennials own free checking accounts.
  • Below are the average checking account balances for each age group in 2016 (the latest available) according to the Federal Reserve Survey of Consumer Finances:
o Under 35: $4,013
o 35-44: $9,593
o 45-54: $10,337
o 55-64: $11,098
o 65-74: $15,752
o 75 and older: $15,803

AVERAGE CHECKING ACCOUNT BALANCES BY INCOME LEVEL

  • People in lower income levels are less likely to maintain a substantial checking account balance.
  • Below are the average checking account balances for each (annual) income level in 2016 according to the Federal Reserve Survey of Consumer Finances:
o Under $25,000: $2,018
o $25,000-$44,999: $4,303
o $45,000-$69,999: $6,492
o $70,000-$114,999: $8,593
o $115,000-$159,999: $12,939
o $160,000 and above: $42,253

ADDITIONAL INSIGHTS FOR CHECKING ACCOUNT BALANCE

  • According to the Federal Reserve Survey of Consumer Finances, the average checking account balance was about $10,545 in 2016.
  • In 2016, the average checking account balance maintained by male-headed and female-headed households were $12,451 and $5,284 respectively.
  • According to the Federal Deposit Insurance Corp 2017 survey, 98.2% of the banked households in the US had a checking account.
  • As of 2018, there are an estimated 359 million consumer checking accounts in the country, with banks accounting for 74.6% of the market share and credit unions accounting for 16.3%.
  • On average, consumers maintained $3,673 in their checking account in any financial institutions in 2018.
  • A survey conducted in 2019 revealed that the average checking account balance for consumers was $2,900.
  • The average monthly maintenance fee for a checking account is around $13.58.

Sources
Sources

From Part 02
Quotes
  • "The Moebs Checking Market Share Study shows consumer checking was over 340 million accounts at the end of 2010. The number of checking accounts increased 4.8% to over 359 million by 2018. Yet, according to Moebs, “banks’ share declined (0.8%), while credit unions spiked 39.9%. Banks lost a net of 2.1M accounts from 2010, claiming none of the 16.9M in checking growth since 2011. Credit unions netted 16.3M new checking accounts and thrifts the rest."
Quotes
  • "Almost all banked households had a checking account (98.2 percent), while roughly three in four (78.0 percent) had a savings account. "
Quotes
  • "Consumers maintained a historically high average checking account balance for year-end June 30, 2018 at $3,673 for all financial institutions, Moebs said Wednesday. Banking consumers reduced checking balances by 1.8% while members at credit unions increased those balances by 3%, and customers at savings and loans associations increased their checking account balances by 20.7%."
Quotes
  • "According to data from the 2016 Federal Reserve Survey of Consumer Finances, the median checking account balance for U.S. households was $3,400, while the average balance was $10,545. The average figure was much higher than the median due to the presence of some extremely high-income households in the survey."
Quotes
  • "Across our survey respondents, about three in four (77%) have a free checking account, a percentage that varies by age. Among both sub-segments of Millennials, 31% have a fee-based account. That percentage drops to 22% among Gen Xers, and to 12% among Boomers "
Quotes
  • "According to a 2019 NerdWallet survey, conducted online by The Harris Poll, the average checking account balance among Americans with checking accounts was about $2,900 and the median was $1,250. "
Quotes
  • "The latest MoneyRates.com Checking Account Fee Survey found that the average monthly maintenance fee is now $13.58, up from $13.51 just six months ago. That means that these fees will now cost you an average of $162.96 per year."