Are You Behind? Here's How Your Savings Compare
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When was the last time you checked how much cash you actually have sitting in checking and savings?
If you're like most Americans, the answer might surprise you.
According to Motley Fool Money's latest savings research, the typical American has around $8,000 spread across checking, savings, and other accounts.
At first glance, that might sound solid. But dig a little deeper, and the math tells a different story.
The average household spends roughly $6,000 a month. That means most families have barely enough to cover one month's expenses if something went wrong. We recommend three to six months of expenses in reserve. Most of us aren't even close.
So where does that leave you?
If your savings are below average
Don't panic. You're not alone, and you're not stuck.
The best way to start closing the gap isn't by overhauling your budget overnight. It's by letting your money work harder where it already sits.
That's why I keep my emergency fund in a high-yield savings account (HYSA).
Traditional savings accounts at big banks still pay close to 0.01%. That means $8,000 earns you about eight bucks a year… hardly motivating. But in a top-tier high-yield savings account averaging about 4.00% APY, that same balance could earn closer to $326 in interest annually, automatically.
That's the kind of difference that builds momentum. When you start to see your savings grow, even a little, it gets easier to stick with it.
If your savings are above average
Nice work! You're ahead of most Americans, and that's something to feel proud of.
But that doesn't mean your cash should coast. Leaving it in a low-rate account means inflation quietly eats away at your purchasing power.
Keeping your emergency fund or short-term goals in an HYSA helps your money hold its value as rates shift. And once that foundation's set, you can start exploring options like CDs or low-risk investments for longer-term growth.
The goal isn't just to have savings, it's to make those savings productive.
Average isn't the goal
When it comes to savings, "average" means one missed paycheck away from stress.
Whether you're catching up or staying ahead, the principle is the same: your money deserves to earn more.
In the right account, your savings will work harder for you -- quietly, automatically, and with zero extra effort.
A high-yield savings account is one of the easiest ways to build a real safety net, stay ahead of inflation, and feel a little more confident about the next curveball life throws your way. Compare the best high-yield savings accounts and start earning more today.
Our Research Expert
Brooklyn Sprunger is a full-time Content Manager and Personal Finance Writer at Motley Fool Money, where she oversees product reviews and ratings while also writing about credit cards, bank accounts, investing, auto insurance, and other personal finance topics. She has worked in financial content since 2018, including more than four years at The Motley Fool. When she’s not writing or editing, Brooklyn is likely hiking and watching the Tennessee Vols.