How Much Money The Average American Has In Their Checking Account

For many people, checking accounts act as their main transaction account for paying bills, making purchases, and managing daily finances. While how much money you should keep in your checking account varies, the average balance of a checking account in the U.S. might not be what you expect. According to a WalletHub analysis of the Federal Reserve's Survey of Consumer Finances, the average checking account balance in the United States is about $16,891. Meanwhile, the median balance is only around $2,800.

At first glance, the difference between average and median balance might not seem to add up. In reality, though, these numbers each tell very different stories. Since averages are calculated by adding everyone's balances together and dividing them by the number of account holders, the mean could be inflated by a small group of individuals with very large sums in their checking accounts. The median, on the other hand, represents the midpoint of the data. In this case, it shows that half of Americans have more than $2,800 in their checking account, and half have less. So, in this case, the median might provide a more accurate illustration of what most people's day-to-day finances look like as it's less influenced by extreme data points.

One reason the median checking account balance is as low as $2,800 is that many households are facing ongoing and serious financial challenges that leave little room for savings. Rising costs for essentials like housing, healthcare, and childcare, combined with minimal wage growth, can make it harder for families to cover their bills. All these rising expenses — along with an explosion of national credit card debt — have rippled through the checking accounts of millions of people. The numbers also tell a similar story: According to The Federal Reserve, around 27% of U.S. households reported some financial hardship in 2024.

For individuals not dealing with financial emergencies, the low checking account balance may be intentional. A JPMorgan Chase study found that, while checking accounts did not grow as fast as expected, the balances of money market accounts, CDs, and investment accounts did increase. According to the study, this could indicate that Americans may be shifting money out of traditional bank accounts and into high-yielding options since traditional checking accounts don't earn much interest.