What Is the Average Bank Account Balance and Income?

Almost anything can impact the average person’s account balance. The factors can range from age, to the type of family, to your job, so the key to having the best account balance possible is to know what category you fit under.

While comparisons sometimes promote unhealthy behavior, knowing what other people do with their money may be helpful.

Below, we will go over the average account balances for Americans in multiple categories to help you figure out where you’re at in terms of your bank account.

Average Account Balance by Age

The Federal Reserve looks at the following types of bank accounts when determining average account balances:

• Checking
• Savings
• Money Market accounts
• Prepaid debit cards

Average Balances by Age

Median Balances by Age

With the information from the accounts listed above, the Federal Reserve determined that the average account balance for Americans is $40,200.

Because this number can be influenced by higher earning individuals, the Federal Reserve has calculated a median account balance of the average American to be $4,500.

Average Account Balance by Family

The average bank account balance will be affected by the type of family in the household. Factors such as children and age can come in to play. Those with children may wonder how they stack up, while childless couples may not appreciate the benefits of dual-income-no-kids (DINK) status.

Here’s a breakdown of account balances by family type:

Average Balance

Median Balance

Balances by Occupation

Your job directly influences your income, so the type of role you fill affects your bank account. The SCF shows the average/median bank account balances for the following types of workers:

Balances by Education Level

Another factor that affects a person’s average account balance would be their level education. The Federal Reserve surveyed Americans with different education levels to calculate the numbers. Here are the general results:

Average Balance

Median Balances

Frequently Asked Questions

How much should the average person have in savings?

A general rule of thumb is you should try to save enough money to cover your expenses for 3-6 months. To help you accomplish this, you want to follow the 50/30/20 rule. This means spend 50% of your income on needs, 30% on things you want, and 20% into your savings.

How much money should I save before buying a house?

To start saving for a house, try to save at least 20% of the purchase price as a down payment, as well as 5% of the loan amount available for closing costs, real estate taxes, and homeowner’s insurance.

Although you must save for your house, try to still save for the extra 3-6 months of expenses as mentioned above. You can save an extra 3% of the home’s value to help pay for any maintenance and repair costs.

How much money should I save for retirement?

The general rule for saving for retirement is to save 8 times your salary by the time you hit 65 years old. The earlier you can start saving for your retirement, the closer you will be to this goal.

Are my savings insured?

The FDIC will insure your approved individual bank accounts up to $250,000 and joint accounts up to $500,000. If you want to save more than this amount, open additional accounts to extend the insurance.

Author’s Verdict

Making sure to create a savings plan as early as possible to prepare yourself for any expenses or plans you have in the future is the end goal.

Selecting a plan that will give you the best chances of achieving your financial goals is easier when you understand the needs and where you stand financially so I hope this has helped.

Also be sure to check out our own lists of  bank promotions and CD tables!