Smart Investments: Household Saving Rates in 2026

The amount of money that American households have in savings has dropped significantly in recent years, with the latest data from early 2026 showing that the median account balance of an average household is now just $8,000.

But this doesn't exactly paint a perfect picture of the overall state of savings within American households, so we'll explore this topic on a much deeper level today.

Household Savings Rates Explained

Household savings are taken from the leftover difference between a household’s disposable income and its expenditures. Basically, it’s all the money you have left from your monthly paycheck after paying your bills and personal expenses.

So, in addition to rent, food, and utilities, expenses such as gym memberships, restaurant visits, and those hot new shoes you bought to match your favorite outfit are all taken into consideration. After all that, you can put your leftover cash into a savings account for a rainy day. 

The household savings rate is basically the same thing represented as a percentage. It’s the percentage of money deducted from a family’s disposable income that gets set aside into a savings account. As of March 2026, the personal saving rate in the United States was forecast to reach 4.8%, a decrease from previous years due to persistent inflation and elevated housing costs.

There are several types of savings accounts, and while they all serve the same purpose (multiplying your hard-earned cash and keeping it safe), there are some subtle differences between them.

Bear in mind that simply having surplus at the end of the month doesn’t mean you’re saving. Only the money you put away into a savings account actually counts.

America’s Current Household Savings Rate

While some families live from paycheck to paycheck and don’t have a single dollar to put away at the end of the month, others manage to stash away millions.

What we’re really looking for here is the median balance. This number shows us the midpoint value, which isn’t affected by outliers and presents a much clearer picture of the US household savings rate. As it turns out, the median American household in 2025 and 2026 has just $8,000 in savings, which was a sharp drop from $11,700 in 2018.

Only the top 10% or 20% of America’s earners have savings that approach or exceed the average figure, which has climbed to $62,410 in 2025 across all transaction accounts, while the top 1% have more than a million dollars saved across several accounts.

How to Save More Money

You need to become familiar with the different types of savings accounts before you can improve your household savings rate. Let’s go over some of the basic options: 

Savings deposit accounts

This is the most basic type of savings account. It’s an interest-based account that allows you to withdraw your money any time you like, but limits you to six withdrawals per month.

These accounts are insured by the Federal Deposit Insurance Corporation (FDIC). As of 2026, they provide cover for up to $250,000 in deposits per depositor, per ownership category. If you want to open one, bring your social security number and ID when you go to the bank and they’ll help you set everything up.

If you want to make a very large deposit, you could try applying for a jumbo savings account. They usually require a deposit of $100,000, but they have a higher personal saving rate, which means you earn more interest.

High-interest savings accounts

A minimum deposit balance or other requirements are usually needed to apply for high-yield savings accounts. In early 2026, high-yield accounts are offering between 4.5% and 5.0% APY, which was significantly higher than the national average savings rate of 0.39%. Online savings accounts typically also offer better interest rates, so browse around to see which bank gives you the best option.

Joint accounts usually cater to married couples as a way of helping them improve their household saving rates. The only difference between a joint account and a savings deposit account is that a joint account is held by more than one party. They can be useful for families because they multiply the FDIC insurance limit by the number of account owners. 

College savings accounts

College savings accounts are usually opened by parents on the day their baby is born. Many people open a basic account to improve their household savings rate and keep enough cash aside both for college and in case of emergency.

But there are also plenty of different accounts and plans designed specifically for college savings.

Some of them only cover tuition costs, while others also cover boarding and study materials. 

In addition to college accounts, you can also find student accounts aimed at young people in college or high school. They generally have more flexible terms and fewer requirements before they can be opened. 

Retirement savings accounts

There are several types of retirement savings accounts. According to our US savings rate chart, Americans aren’t putting away enough money in their savings. That’s a problem, because the older you are, the more difficult it might be to plan for retirement if you don’t already have a head start.

In 2025, the median retirement account balance for those aged 55-64 was $185,000, while for those 65-74, it peaked at $200,000.

You can choose between 401(k) accounts, individual retirement accounts (IRAs), Roth IRAs, Roth 401(k), SEP IRAs, and simple IRAs.

A 401(k) is an employee retirement plan offered by the company you work for, while IRAs are investment accounts you can use to invest in mutual funds, stocks, or bonds.

Tips and Tricks to Improve Your Savings

Here are a few things you can consider implementing to improve the state of your savings:

Make a budget

Don’t underestimate the power of simple budgeting. Before you do anything else, start tracking your income and calculate your monthly expenses. Knowing how much money you have at your disposal can help you establish a savings goal and keep you on the right track. If you need help budgeting, try one of the many apps available on the market today. 

Avoid debt

You can certainly improve your consumer savings rate by prioritizing your debt payments.

Debt is a problem that won’t go away, and you won’t be able to improve your lifestyle or put money into a savings account until you’ve dealt with student loans, credit card debt, and the dreaded mortgage.

In 2026, statistics show that 29% of U.S. adults have more credit card debt than emergency savings.  

Minimize expenses

Whether it’s eating out too often or ordering one too many lattes during the day, all of us have expenses we could really do without. However, don’t focus too much on the small trifles; that’s not where real cash problems arise.

Focus on the big things, like your car and your house. A huge number of American households overspend and try to live beyond their means, and this only leads to financial ruin in the long run. 

Consider a side hustle

The best way to increase your household savings rate is to open up new income streams. This doesn’t mean you need to get a second job, but it’s worth considering how you can make the most of your skills by doing some freelance work on the side. You could even rent that spare room in your house or have a garage sale to raise some extra funds.

If you put every single penny you earn from these ventures into a savings account, you’ll be surprised at how much you can set aside. 

Introduce no-spending days

This one is self-explanatory; a no-spending day is a day when you simply don’t touch your wallet. No cash, no credit cards, nothing. During this 24-hour period, you have to bet by on what you already have at home.

This is a good way to train yourself to plan ahead, buy only the things you really need, and resist impulse purchases. The trick here isn’t to spend no cash one day and then go on a spending splurge the next day to make up for it. It’s about being sensible with your money and resisting those consumerist urges that might be encouraging you to overspend. 

In Conclusion

If you want to save more, the best steps you can take are to review your budget, prioritize debt payments, and become a thoughtful consumer. Simply becoming more actively aware of your own money and the way you spend it can increase your savings significantly.

We hope our tips help you create a better financial strategy for the future.