Key Takeaways
- As you’d expect, Americans ages 35-44 have more saved than people younger than 35, but less than their older counterparts.
- Your age, your financial situation, your goals, and other factors determine your ability to save.
- Automating savings and taking advantage of work benefits can help boost your savings.
- One of today’s best high-yield savings accounts or a top nationwide CD can also help maximize your savings.
The full article continues below these offers from our partners.
What the Average American Has Saved by Age 35-44 (and How You Stack Up)
If you’re in your 30s or 40s, you may have a variety of things competing for your time and money: a family, higher living expenses, student loans, a mortgage, college tuition—or perhaps some bigger-ticket purchases on the horizon, such as a wedding or a new home.
Whatever your circumstances, they impact your ability to save money for the future. Age is one determining factor, and it’s not surprising that the older you are, the more you’re likely to have saved. According to the Federal Reserve’s latest Survey of Consumer Finances, the median balance that households with bank accounts had in 2022 (the most recent data available) ranged from $5,400 for those under 35 to $13,400 for those ages 65-74.
Americans in the 35-44 age group fell in the middle. Among the 98.4% of people in that age group who have a bank account, the median balance was $7,500.
| Median Bank Account Balances by Age Among Bank Account Holders | ||||||
|---|---|---|---|---|---|---|
| Under 35 | 35-44 | 45-54 | 55-64 | 65-74 | 75 or older | |
| 2013 | $2,800 | $4,840 | $5,090 | $6,360 | $8,910 | $8,910 |
| 2016 | $3,150 | $4,690 | $5,010 | $6,620 | $9,870 | $12,330 |
| 2019 | $3,760 | $5,460 | $7,420 | $6,520 | $9,270 | $10,780 |
| 2022 | $5,400 | $7,500 | $8,700 | $8,000 | $13,400 | $10,000 |
Important
We use median figures here, instead of mean averages, to reduce the impact of those with exceptionally high or low savings amounts. The median value is that of an American in the middle of the range–where half of the survey respondents reported more savings and half reported less.
In addition to what’s in bank accounts, people 35-44 have money stashed in other kinds of accounts and assets, with 61% having retirement accounts.
| Where Else People Age 35-44 Are Saving Money | ||
|---|---|---|
| Asset | % Households with Asset | Median Value for Asset Holders |
| Savings Bonds | 6.5% | $750 |
| CDs | 4.4% | $10,000 |
| Stocks (directly held) | 20.6% | $12,000 |
| Retirement Accts | 61.5% | $45,000 |
| Bonds (directly held) | 0.4% | $45,000 |
“Directly held” stocks and bonds are not in a retirement account. The value of bonds in this table is high, given that only a tiny fraction of people in this age group own directly held corporate or municipal bonds. This small group either holds numerous bonds, bonds with high values, or both. Also, survey respondents self-report values, and could be reporting face values of bonds that they find on account statements, rather than lower market values.
How to Set—and Meet—Savings Goals by Age 45
Is there a perfect amount to save?
“By your mid-30s to early 40s, I typically suggest having at least 1.5 to 2 times your annual income saved, including retirement accounts, cash savings, and investments,” said Paul Miller, a CPA and managing partner at Miller & Company, LLP in Queens, New York.
Miller offers some savings tips:
- Track your spending and make a budget: Knowing what you’re spending helps you find areas to cut back if possible. “Even small changes like eating out less or cancelling unused subscriptions can free up extra money to save,” Miller said.
- Automate savings: Even if it’s for a small weekly amount, set up automatic transfers. These savings add up over time without much thought.
- Set up micro-saving: Use bank apps or programs that round up purchases and put the spare change in your savings account. This can be a good tactic for those with tighter incomes, Miller said.
- Use work benefits: If your employer offers a 401(k) match or savings plan, aim to contribute enough so you can get the full matching funds. It’s free money that will boost your savings.
In addition to what you have saved, where you have that money saved is also important, Miller said. You’ll pay taxes when you withdraw money in a 401(k) or traditional IRA, while funds in a Roth IRA will be tax-free down the road. “The goal is to not only save enough, but to diversify how it’s taxed, so you have flexibility down the line,” he said.
How to Boost Your Savings Balances With Today’s High Interest Rates
High-yield savings accounts and CDs are two options that can help put more money in your pocket.
For money you need full access to, consider a high-yield savings account. A dozen of the highest-paying savings accounts currently pay between 4.40% and 5.00% APY. The rates are variable, meaning the bank or credit union can change them at any time.
An additional strategy is to commit a portion of your savings to a certificate of deposit. CDs pay a fixed and guaranteed rate. In exchange, you need to leave your money in the CD for a set time period, usually between 3 months and 5 years. The top-paying CDs are offering historically high yields right now—as high as 4.60%—and those are locked in regardless of what happens with interest rates over time. So if you can allocate a portion of your savings to go untouched for a while, a CD can further boost your earnings.
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
Important
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.