Most working adults have at least one savings account, but the percentage varies by age and income

About 94% of American households have a bank account of some kind, according to the Federal Deposit Insurance Corporation (FDIC). But that number includes checking accounts. When you narrow it to savings accounts specifically, the picture shifts: roughly 76% of U.S. adults report having a savings account, though this varies significantly by age, income level, and employment status.

The gap matters because a checking account and a savings account serve different purposes. A checking account is for money you spend regularly. A savings account is meant to hold money you are not touching right now. Many people have both, but not everyone maintains a separate savings account—some keep everything in checking, and some use neither.

The people least likely to have a savings account are those earning under $30,000 per year, younger adults under 25, and people without steady employment. This is not because they do not want to save; it is often because they do not have money left over after expenses, or because they do not trust banks, or because they have had negative experiences with overdraft fees and minimum balance requirements.

Key Takeaways

  • About 76% of American adults have a savings account, but this percentage drops significantly for people earning less than $30,000 per year.
  • Having a savings account is more common among people over 35 and those with stable employment than among younger or lower-income adults.
  • Many people without savings accounts use cash, prepaid cards, or money market accounts instead, or they keep all their money in checking.
  • Banks set minimum balance requirements and charge fees that can make savings accounts impractical for people living paycheck to paycheck.

Who is most likely to have a savings account

Savings account ownership increases with age and income. Adults between 35 and 54 have the highest rates of savings account ownership. People earning $75,000 or more per year are far more likely to have a savings account than those earning less. Employed people with regular paychecks are also more likely to maintain one than unemployed or self-employed people.

Education level matters too. College graduates are more likely to have a savings account than people with a high school diploma or less. This is partly because higher education correlates with higher income, but also because financial literacy and comfort with banking systems tend to increase with education.

Why some people do not have a savings account

The reasons people skip savings accounts fall into a few categories. The first is practical: if you are living paycheck to paycheck, there is nothing left to save. The second is structural: many banks require a minimum balance to open or maintain a savings account, and charge monthly fees if you fall below it. For someone with $200 in the bank, a $5 monthly fee eats into what little they have.

The third reason is trust. Some people have had bad experiences with banks—overdraft fees, accounts closed without warning, or money held for unclear reasons. Others come from communities where banking has historically been predatory or inaccessible. These are rational reasons to keep money outside the banking system.

A fourth group straightforward does not see the point. If a savings account earns 0.01% interest and your checking account earns nothing, and both are at the same bank, some people do not bother opening the second account. This reasoning has shifted somewhat as savings account interest rates have risen in recent years, but the habit persists.

What people use instead of savings accounts

Not having a savings account does not mean someone is not saving. People use other methods: keeping cash at home, using prepaid cards, maintaining a money market account, investing in stocks or bonds, or straightforward keeping everything in a checking account and mentally earmarking some of it as "do not spend."

Some people use savings tools outside the traditional banking system entirely—credit unions, which operate on a membership model and often have lower fees; online-only banks, which have lower overhead and sometimes offer higher interest rates; or informal savings groups where members pool money and take turns withdrawing.

How savings account ownership has changed

Savings account ownership has remained relatively stable over the past decade, hovering between 75% and 77% of adults. What has changed is the interest rate environment. For years, savings accounts earned almost nothing, which reduced the incentive to open one. Starting in 2022, the Federal Reserve raised interest rates, and some savings accounts began paying 4% to 5% annually. This has made savings accounts more attractive, particularly high-yield savings accounts offered by online banks.

The pandemic also shifted behavior. Many people received stimulus payments and had less opportunity to spend, which increased savings rates temporarily. Some of that money went into savings accounts, though much also went into investments or was spent as restrictions lifted.

The difference between having a savings account and using it

One important distinction: having a savings account is not the same as actively saving. Some people open a savings account and never deposit anything into it. Others open one, use it briefly, and then stop. The FDIC tracks account ownership, but not how much money sits in those accounts or how often they are used.

This matters because the goal of a savings account is not just to have one—it is to build a financial cushion. A savings account that sits empty does not serve that purpose. The real question is not whether most people have a savings account, but whether most people are actually saving money, and the answer to that is no. About 40% of Americans report they could not cover a $400 emergency expense without borrowing or selling something, which suggests that many savings accounts, if they exist, are not being used effectively.

Regional and demographic variation in savings account ownership

Savings account ownership is not evenly distributed across the country. States with higher median incomes and lower poverty rates tend to have higher rates of savings account ownership. The same is true within cities: neighborhoods with higher average incomes have higher rates of banking access and account ownership.

Racial and ethnic disparities also exist. White and Asian American adults have higher rates of savings account ownership than Black and Hispanic American adults, though these gaps have been narrowing. These differences reflect historical inequities in access to banking, wealth accumulation, and financial services, not differences in desire to save.

Frequently Asked Questions

Do I need a savings account if I have a checking account?

Not necessarily. A savings account is useful if you want to separate money you are saving from money you spend regularly, or if you want to earn interest on idle money. If you do not have money left over to save, or if you prefer to keep everything in one account, a checking account alone is sufficient.

What is the difference between a savings account and a money market account?

A money market account is a hybrid: it works like a savings account but often requires a higher minimum balance and pays higher interest. It may also come with a debit card or checkbook. Both are deposit accounts insured by the FDIC up to $250,000. The choice depends on how much money you have and how often you need to withdraw.

Why do some banks charge fees on savings accounts?

Banks charge monthly maintenance fees to cover the cost of maintaining the account and to encourage customers to maintain a minimum balance. Online banks and credit unions often have lower or no fees because they have lower overhead costs. Shopping around for a no-fee account is worth doing if fees are a concern.

If I do not have a bank account, how do I save money safely?

You can use a credit union, which often has lower fees and more flexible requirements than banks. You can also use an online bank, which typically has no minimum balance. If you distrust banks entirely, a safe deposit box at a bank (which costs a small annual fee) can hold cash or documents, though it does not earn interest.

Does having a savings account affect my credit score?

No. Opening or maintaining a savings account does not appear on your credit report and does not affect your credit score. Only borrowing activity—loans, credit cards, payment history—affects your score. A savings account is purely a deposit account.