According to findings by the Federal Reserve Survey of Consumer Finances, over 92% of the U.S. population owns a checking account. Many people use checking accounts to get direct deposits from an employer. Checking account balances vary depending on income, age, gender, and race.
What Is The Average Bank Account Balance?
The Survey of Consumer Finances recently conducted a study to determine the average bank account balance. The study measured the savings accounts, holdings in checking accounts, prepaid debit cards, and money market accounts. According to the study, the median and average account balances for U.S. households is $4,500 and $40,200, respectively. The study also concluded that the number of households with bank balances to report had increased from 93% in the 2013 survey to 98% in the 2016 study. The increase was attributed to the use of prepaid debit cards for transactions.
Average Checking Account Balance by Income
The SCF study established that higher household incomes had higher account balances. The difference in the account balances was more significant at higher income levels. The findings also established that the average bank balances had grown larger between 2013 and 2016 for every income group except for the highest and lowest-earning households.
Average Checking Account Balance by Age
The SCF study also compared the checking balances of different age groups. It was established that older households had larger balances. Between 2016 and 2013, most age groups had an increase in their checking account balance. However, households below 35 years experienced little change in their average account balance, which now stood at $4,013.
Average Checking Account Balance by Gender
Households that are led by men have larger checking account balances than those which are run by women. The difference is even higher for median checking account balances. These findings are attributed to income disparity and family dynamics in households led by women.
In conclusion, the average checking account balance for U.S. households varies depending on income, age, and gender. High-income households have higher account balances than low-income households. People below 35 years also have low account balances. Additionally, men dominated households typically have a higher checking account balance than women dominated households.
As a Business Banking Professional, Kim helps businesses providing commercial loans specifically meant to provide a business with the capital needed to start-up or expand. In her role, she interacts with entrepreneurs and business owners concerning future financial investments in an effort to help the business find the strategies that would work for them.
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