The current picture of savings account ownership

Roughly 6 in 10 American adults have a savings account, though the exact percentage shifts slightly year to year depending on who is surveyed. The Federal Reserve's Survey of Household Economics and Decisionmaking, which interviews thousands of Americans annually, has tracked this number for over a decade. What matters more than the exact percentage is what it tells you: a savings account is common, but not universal, and the reasons people do or don't have one vary widely.

The percentage has stayed relatively stable over the past several years, hovering between 60 and 65 percent. This means roughly 4 in 10 Americans do not have a savings account at a bank or credit union. That gap is not random — it follows patterns based on income, age, and past experience with banks.

Key Takeaways

  • About 6 in 10 American adults have a savings account, a figure that has remained fairly steady for several years.
  • Savings account ownership is lower among people with lower incomes, younger adults, and those who have had negative experiences with banks.
  • Not having a savings account does not mean someone is not saving — some people use cash, prepaid cards, or other methods instead.
  • The reasons people lack a savings account include minimum balance requirements, fees, distrust of banks, and straightforward not seeing the need.

Who is more or less likely to have a savings account

Savings account ownership is not evenly distributed across all groups. Adults earning less than $30,000 per year are significantly less likely to have a savings account than those earning more. The gap widens as income drops — people living paycheck to paycheck often cite minimum balance requirements and monthly fees as barriers. If you have $50 in your account and the bank charges a $12 monthly maintenance fee, the math does not work.

Age also matters. Younger adults, particularly those under 25, have lower savings account ownership rates than middle-aged adults. This reflects both lower income and less familiarity with banking. Adults over 65 have some of the highest ownership rates. Race and ethnicity show patterns too: Black and Hispanic Americans have lower savings account ownership rates than white Americans, a gap rooted in historical exclusion from banking and ongoing differences in access and trust.

Past experience shapes current choices. People who have been hit with overdraft fees, had accounts closed without warning, or felt disrespected at a bank are more likely to avoid banks altogether. This is not irrational — it is a reasonable response to a bad experience.

What people do instead of having a savings account

The 4 in 10 Americans without a savings account are not all failing to save. Some keep cash at home, which is slower to access but carries no fees and no risk of overdraft charges. Others use prepaid cards, which can be loaded with money and used like a debit card. Some rely on family members to hold money for them. A smaller group uses financial apps designed for saving, though these typically still connect to a bank account behind the scenes.

The choice to avoid a bank account is sometimes deliberate and sometimes circumstantial. Someone might avoid banks because they distrust them or have had bad experiences. Someone else might lack the documents needed to open an account — a government ID, a Social Security number, or a permanent address. Still others straightforward have never had a reason to open one and do not know where to start.

Why the percentage matters less than your own situation

Knowing that 60 percent of Americans have a savings account is interesting context, but it should not drive your decision. What matters is whether a savings account makes sense for you right now. If you are earning income and want a safe place to store money that you can access without carrying cash, a savings account is worth exploring. If you have had bad experiences with banks, that is worth addressing directly — either by finding a bank or credit union that operates differently, or by understanding what protections exist if something goes wrong again.

The fact that millions of Americans do not have a savings account also means that banks and credit unions have been working to lower barriers. Many now offer accounts with no minimum balance, no monthly fees, and no requirement for a certain income level. Some offer accounts specifically for people new to banking or returning after a gap.

How savings account ownership has changed over time

The percentage of Americans with a savings account has not shifted dramatically in recent years, but the reasons people open accounts have changed somewhat. A decade ago, savings accounts paid slightly higher interest rates, which gave people a reason to keep money in them. Today, interest rates on savings accounts are often very low, so people are more likely to open an account for safety and access than for growth.

The pandemic temporarily shifted behavior — many people opened savings accounts or added to existing ones when they received stimulus payments or had reduced spending. Some of that momentum faded as life returned to normal, but it showed that people will save when they have the means and the motivation to do so.

Barriers that keep people from opening a savings account

The most common reasons people cite for not having a savings account are lack of money to deposit, minimum balance requirements, and fees. A close second is distrust of banks or straightforward not seeing the need. Some people say they have never been offered an account or do not know how to open one. Others lack the documents required — a valid ID, proof of address, or a Social Security number.

Language barriers can also play a role. If English is not your first language and a bank does not offer services in your language, opening an account becomes harder. Some banks and credit unions now offer accounts and support in multiple languages, but availability varies by location.

The good news is that many of these barriers are shrinking. Online banks have no physical location, so you can open an account from home. Some banks have lowered or eliminated minimum balances. Credit unions, which are member-owned and often serve specific communities, sometimes have more flexible requirements than large national banks.

Frequently Asked Questions

Does not having a savings account hurt your credit score?

No. Credit scores are based on borrowing and repayment history — credit cards, loans, and payment records. A savings account does not appear on your credit report at all. However, having a savings account can help you avoid taking on debt in an emergency, which indirectly protects your credit.

Is it normal to not have a savings account?

It is common — about 4 in 10 Americans do not have one. But common does not mean it is the best choice for you. If you earn income and want a safe place to store money, a savings account is worth considering, even if you start with a small amount.

Can I open a savings account if I have never had one before?

Yes. Banks and credit unions regularly open accounts for people new to banking. You will need a government-issued ID and usually a Social Security number or tax ID. Some institutions offer accounts specifically designed for people without banking history. Call ahead to ask what documents you need.

What if I do not have a permanent address?

Most banks require a mailing address to open an account. If you are experiencing homelessness, some credit unions and community banks have programs for people in this situation. You can also ask a trusted friend or family member if you can use their address temporarily while you get on your feet.

Why do some people keep cash instead of using a savings account?

Cash avoids fees, requires no trust in a bank, and is when ready accessible. The downsides are that it is not insured if lost or stolen, and it does not earn interest. For someone who has had bad experiences with banks or lives paycheck to paycheck, the trade-off sometimes makes sense.