Here's How Much Money the Average American Has in Their Checking Account
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The average U.S. household holds $16,891 in a checking account, according to Motley Fool Money's analysis of Federal Reserve data. The median balance sits around $2,800.
But just because big checking balances are common doesn't mean they're ideal. In many cases, keeping too much cash in a checking account is a financial drag -- because it's missing out on higher interest earned elsewhere.
Let's dig into the numbers… and talk about where your cash should actually live.
Checking account averages by age
Here's the full breakdown of average checking account balances by age group:
| Age Range | Average Balance |
|---|---|
| Under 35 | $7,355.53 |
| 35 to 44 | $15,309.92 |
| 45 to 54 | $20,155.22 |
| 55 to 64 | $17,515.35 |
| 65 to 74 | $24,408.76 |
| 75 and older | $19,517.14 |
The national average across all ages comes out to about $16,891.
But remember, these are just averages. And high earners or outliers with $30K or $50K sitting idle can skew the numbers upward. The median checking balance is just $2,800, which is a more realistic snapshot of most Americans.
Why more people should have high-yield savings accounts
Here's my biggest issue with checking accounts: they pay almost nothing in interest. Like… pennies a year.
And yet, I know tons of people (myself included, in the past) who keep $5,000, $10,000, or more sitting in checking accounts "just in case."
The problem is that money isn't working hard or earning interest.
If you're holding cash that you don't plan to spend this month (stuff you'd consider more like "savings"), it really shouldn't be in checking at all. A high-yield savings account (HYSA) is a much better fit.
Right now, many top high-yield savings accounts are paying around 4.00% APY. Compare that to a typical big-bank checking account earning just 0.01%, and the gap is massive.
To put it in perspective, here's how much interest the average checking account balance of $16,891 could earn in one year, depending on where you keep it:
| Account | APY | Interest |
|---|---|---|
| Big bank checking | 0.01% | $2 |
| Online HYSA | 4.00% | $676 |
That's a huge gap. And it doesn't take much effort to open a new account and move a chunk of your cash over.
If you've got extra cash sitting in checking that you're not planning to spend right away, moving it to a high-yield savings account is an easy win. Your money will work way harder.
One option worth checking out is LendingClub LevelUp Savings, which is offering 4.20% APY with $250+ in monthly deposits -- one of the highest APYs available right now. Read our full review here to see if it’s a good fit for your savings.
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LendingClub LevelUp Savings
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- Competitive APY
- No fees
- Easy ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- Requires you to make monthly deposits to earn the best APY
- ACH outbound transfers limited to $10,000 per day for some accounts
- No branch access; online only
The LendingClub LevelUp Savings account has a lot to offer. At the top of the list is its high APY, though you must deposit monthly to earn the best rate. Next is zero account fees, a strong and straightforward perk. Finally, you get a free ATM card, which you can use to withdraw from thousands of ATMs nationwide. Interested? You can open an account with $0.
Where your extra cash should live
I think of checking accounts like a landing zone -- they're perfect for day-to-day spending, covering your bills, and keeping life running smoothly.
But once your balance creeps past what you actually need for the month, it's worth asking: could this money be working harder somewhere else?
Here's a setup that's worked well for me:
- Checking account: Keep one to two months of expenses for everyday stuff
- High-yield savings: This is for your emergency fund and any short-term savings goals (like things you'll buy in the next one to three years)
- Investments: Any long-term money for future-you (retirement, wealth-building, etc.) should be invested and not touched. This is where you'll earn the highest return on your money.
When everything's dumped in a checking account, you're earning next to nothing (and it's way easier to spend).
When you break things into buckets, every dollar has a job to do. And that kind of clarity makes it way easier to stay on track and build real momentum.
Average balances don't matter -- your habits do
The truth is, you don't want to be the person with the highest checking account balance. You want to be the person who's putting their money in the right places.
That might mean moving extra cash into a high-yield savings account or even investing it for long-term growth. But it can also mean upgrading your checking account itself.
Some banks actually offer interest-bearing checking accounts -- so you don't have to settle for 0.01% anymore.
Check out our top-rated checking accounts to find one that pays you more for the money you're already using.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.