What Is the Average Checking Account Balance in the U.S.?

Chances are, you’re pretty intimate with your checking account. This type of account is typically used for regular spending. You may even move money in and out of it multiple times a day. The best checking accounts are affordable to maintain, earn some interest and provide easy access to your cash when you need it. If you’re looking for ways to grow your wealth by getting it out of your checking account and into better investments, consider speaking with a financial advisor to create a plan.

Overview of Checking Accounts in the U.S.

The Federal Reserve Survey of Consumer Finances offers a trove of information about checking account usage in the U.S. It found that more than 92% of the population has a checking account. When the 8% without a checking account were asked why they didn’t have one, the most popular answer was not wanting to deal with banks.

This was followed closely by not writing enough checks to make a checking account worthwhile. Other reasons included high fees for services, not having enough money or suffering from credit problems.

Of course, most of us need checking accounts – at the very least to get direct deposit payments from an employer. But how much should we be keeping in our checking account? It should be enough to cover regular spending, but not so much that you’re missing out on interest earnings elsewhere. Compare yourself to the medians below to see where you stand.

Median and Average Checking Account Balance in the US

Here are the median and average checking account balances in the US as of 2022, which is the most recent data available, for Americans who have checking accounts:

Median: $8,000
Average (Mean): $62,410

The households with much higher incomes seriously skew the numbers when you calculate the mean. Checking account balances are lower than the median and average savings account balances in the U.S. They aren’t, however, so low as to indicate trouble paying typical living expenses. To get a better idea of where you stand, you can compare the median checking account balance filtered by demographic.

Average Checking Account Balance By Age

As Americans get older, they tend to have more in their checking accounts – until they reach a certain threshold. Those under 35 have an average of $20,540 and a median of $5,400. Both average and median checking account balances tend to rise until age 75 when they decrease.

This is likely because lifestyles hit a peak during the end of your career, while rent and expenses tend to remain lower in early adulthood and retirement. As it would appear, monthly expenses rarely exceed $8,377, which is the average monthly balance for those aged 65-74.

For a clearer picture, check out the full breakdown of median checking account balance by age:

Under 35: $5,400
35-44: $7,500
45-54: $8,700
55-64: $8,000
65-74: $13,400
75+: $10,000

Average Checking Account Balance By Income

Stacks of coins organized from shortest to tallest, symbolizing financial growth.

Unsurprisingly, Americans who make more money keep more in their checking accounts. It’s likely that higher salaries encourage higher costs of living: higher rent, food, clothes, and entertainment bills. The difference grows more distinct with every income bracket.

In fact, the median checking account balances nearly double with every new bracket until we reach the highest bracket: an annual income of $90,0000 or more. Those who make less than $20,000 a year tend to keep around $900 in checking, while those raking in more than $90,000 have a median balance of $111,600and an average balance of $353,030..

The numbers seem exceptionally high for checking accounts but could be a reflection of take-home pay deposited directly into checking. Those below the $20,000 income threshold are also least likely to have a checking account. They likely utilize alternative methods like prepaid cards and money orders. Check out the full breakdown of the median checking account balance by income:

Under $20,000: $900
$20,000-39,999: $2,550
$40,000-59,999: $7,400
$60,000-79,999: $15,760
$80,000-89,999: $33,800
$90,000+: $111,600

Average Checking Account Balance By Race

Race also seems to affect how much Americans have in their checking account. Both average and median checking account balances were four times greater for white non-Hispanic households than for black and Hispanic ones. However, it is important to note that nearly three-quarters of those surveyed by the Federal Reserve for the Survey of Consumer Finances were white non-Hispanic. White respondents were also much more likely to have a checking account at all. This is the breakdown of median checking account balance by race:

White non-Hispanic: $12,000
Black, non-Hispanic: $$2,110
Hispanic: $2,100

Average Checking Account Balance By Education

Typical checking account balances also vary by the highest level of education achieved by the household reference person. From those who didn’t graduate from high school to college graduates, here’s how education correlates with average checking account balance.

No high school diploma: $9,130
High school diploma: $23,380
Some college: $33,410
College degree: $116,010

Historic Trends in Checking Accounts

Median checking account balances seem to be on the rise for the last decade of surveys. In addition, the Federal Reserve and Federal Deposit Insurance Corporation reported that more of the country is becoming banked as time goes on. In the latest survey, 98.6% of families had checking accounts, up from 93.2% in 2013.

Tips to Grow Your Checking Account Balance

Having more money in your checking account can help you avoid bouncing checks and paying overdraft fees, as well as providing flexibility to cover unexpected expenses. Here are three ways to increase your checking account balance.

Increase your income. Asking for a raise, looking for a better-paying job and taking on a part-time side hustle can increase your income and give you more money to put in your checking account.
Reduce expenses. Careful budgeting can help you identify opportunities to save money by canceling unnecessary subscriptions, cooking more at home instead of dining out and other strategies.
Earn from investing. Putting extra money into a savings account, certificate of deposit, mutual fund, or other investment can grow your earnings through interest or returns, adding to what you make from your job and boosting your overall balance.

How to Manage Your Checking Account

Even though checking accounts are pretty straightforward, there are some checking account best practices to keep in mind. Although your account is often used for multiple purposes, you still want to review it as strictly as you check your credit card statement. You should run the numbers once a month to ensure more is going in than coming out. You don’t want to end up in a position where you’re bouncing checks, which could lead to fees and a hit to your credit score. Most banks allow you to set up alerts in case your account dips below a certain amount.

Keeping a close eye on your checking account use will also help you spot suspicious activity and avoid identity theft. You should also be mindful of your ATM usage. Some out-of-network ATMs charge fees for withdrawals. Mobile and online banking can help you manage your finances and find in-network ATMs without excess fees.

Tips for Money Management

If you want help with setting and meeting your financial goals, you might want to consider reaching out to a financial advisor. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you want to maximize your savings but are spending money left in your checking account then you should consider finding the best savings account to stash your money for a rainy day.