How Much Should You Keep in Your Checking Account? Benchmark Your Balance

Average Checking Account Balance

In 2022, families maintained an average transaction account balance (including checking, savings, money market, call accounts, and prepaid debit cards) of $62,410, as per the Federal Reserve's Survey of Consumer Finances. However, the median balance stood at a modest $8,000.

Average Checking Account Balance by Age

The survey reveals a generally positive correlation between age and transaction account balance. Families with reference persons younger than 35 had an average balance of $20,540, while those with reference persons aged 75 or older held $82,800.

| Age Group | Average Transaction Account Balance | Median Balance |
|---|---|---|
| <35 | $20,540 | $5,400 |
| 35-44 | $34,340 | $10,000 |
| 45-54 | $61,520 | $15,000 |
| 55-64 | $86,650 | $20,000 |
| 65-74 | $100,250 | $25,000 |
| 75+ | $82,800 | $10,000 |

Average Checking Account Balance by Income

Income level also significantly impacts transaction account balance. Higher-income families typically have larger balances.

| Income Percentile | Average Transaction Account Balance | Median Balance |
|---|---|---|
| <20th | $7,860 | $3,500 |
| 20th-40th | $18,130 | $7,100 |
| 40th-60th | $39,210 | $12,300 |
| 60th-80th | $91,460 | $24,000 |
| 80th-90th | $223,190 | $40,000 |
| 90th-100th | $353,030 | $60,000 |

Average Checking Account Balance by Education Level

Higher education levels correlate with higher transaction account balances.

| Education Level | Average Transaction Account Balance | Median Balance |
|---|---|---|
| No high school degree | $20,810 | $8,500 |
| High school degree | $24,860 | $10,000 |
| Some college | $33,410 | $12,500 |
| College degree | $116,010 | $30,000 |

Tips for Increasing Your Checking Account Balance

* Switch to a fee-free account: Bank fees can deplete your balance.
* Earn interest on your balance: High-yield savings accounts or interest-bearing checking accounts can boost your balance over time.
* Use a budget to monitor expenses: Keep track of your spending to identify areas for potential savings.
* Increase your income: Explore options for earning more money through raises, higher-paying jobs, or side hustles.

Remember, maintaining a healthy checking account balance is just one aspect of financial well-being. Consider your overall financial goals and adjust your strategy accordingly.