Here's the Average Savings Account Balance for Lower-Class Americans

Money in a savings account represents financial security and opportunity for many Americans. While we all wish we had a little more of it, there's no denying that some people are much better off than others.

For high-income Americans, a low savings account balance might look like $10,000 or even $50,000. But for lower-class Americans -- those in the lowest 40% in terms of income -- saving anything at all can be a major accomplishment.

Here's how much the average lower-class American has in savings

It's no secret that those with lower incomes have a harder time saving money. Most of what they earn has to go toward paying their monthly bills, which are getting more expensive all the time thanks to inflation. Even so, most still manage to put away some money for the future.

The Federal Reserve's latest Survey of Consumer Finances looked at the value of transaction accounts, which include savings accounts as well as checking accounts, money market accounts, and prepaid debit cards, across income tiers. Here's what it found:

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Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.46% Rate info The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

You'll note that the mean balances are much higher than the median balances for all tiers. This is because a few people with above-average savings can skew the means for the entire group. The median is a more accurate assessment of what the typical person in that group has.

The difference between the lowest two income quintiles and the highest two are stark. A lot of this comes back to monthly income, which usually doesn't lend itself to easy fixes. But there may be a few things you can try to build up your savings if you haven't already.

How you can build your savings account balance

Here are a few ways you can build up your household savings.

Open a savings account

Most Americans have savings accounts, but there are still about 2% of households in the 20% to 39.9% quintile and 4.5% of households in the lowest quintile that lack any sort of transaction account. You might think it's not important to have a bank account if you don't have a lot of money, but that's not necessarily true.

Banks can help protect your money against theft better than you could if you just kept the cash in your wallet. You may also be able to earn interest on your balance each month. Even if the funds are only in your account for a few days, they can still contribute to your monthly interest payment.

The best type of bank account to open is a high-yield savings account, like the Discover® Online Savings account. Open one to earn an interest rate more than five times the national average with no monthly fee, so you can grow your balance effortlessly.

Review your budget

Many low-income households already budget carefully. But if you haven't taken the time to create a budget, it's worth doing. You may be able to identify areas where you've been spending more than you need to, and you can divert some of these funds to savings. If you don't want to do all the math involved in a paper budget, try a budgeting app instead.

Consider a side hustle

This is another move that many low-income households have already tried, but if you haven't, give it a try. A side hustle can help boost your income, helping you pay down debt and save more. 

Give these tips a try for a few months and then check in to see how you're doing. Aim to save at least three to six months of living expenses if possible so you're prepared for any financial emergencies that come your way.