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https://www.gobankingrates.com/banking/savings-account/62-percent-americans-under-1000-savings-survey-finds/ https://www.gobankingrates.com/banking/savings-acco

https://www.gobankingrates.com/banking/savings-account/62-percent-americans-under-1000-savings-survey-finds/ https://www.gobankingrates.com/banking/savings-account/62-pe... > The overall results from the survey show that 62 percent of Americans have less than $1,000 in their savings accounts, and a third of those under-savers have no savings account at all. The portion of savers with balances over $1,000 is 29.1 percent.

nkozyra 8y ago
What's the value of a "savings account" in 2018, though? Not to be flippant, but it's a bit anachronistic to even care about something that provides so little ROI, and if people are deriving greater meaning from that I'd hope the analysis is more nuanced.
- caymanjim 8y ago
  There's not much point in investing less than $1000. People are getting hung up on the "savings" part of this. It could be a checking account, it could be cash in a jar. The point is that it's the amount of money available that isn't tied up in material assets like real estate, a car, etc. or isn't invested in something like a 401(k).
  - frockington 8y ago
    Than I have ~$500 most of the time. Why would anyone willing lose money every year by hoarding it in a savings account/in a jar
  - vonmoltke 8y ago
    > People are getting hung up on the "savings" part of this. It could be a checking account, it could be cash in a jar. People are "hung up" on it because, per the linked article, the survey literally asked about savings accounts. I have more money sitting in cash at home than I do in my savings accounts. The only reason my wife and I have savings accounts is Bank of America's Keep the Change thing.
- danesparza 8y ago
  > What's the value of a "savings account" in 2018, though? Low risk emergency fund or sunk cost funds. If you purchase everything on credit or debt, you're asking for trouble in the long run. Debt or credit involves substantially more risk.
  - vonmoltke 8y ago
    If you purchase everything from a savings account you are going to get eaten alive in withdrawal fees. Note the survey question literally asked about "savings accounts". I would answer that question with a number below $1,000, but I still have a significant reserve and no credit card balances.
    - djrogers 8y ago
      I haven't paid a withdrawl fee on a savings account in decades, and I use them for all my sinking funds.
      - mattkrause 8y ago
        Regulation D limits savings accounts to six withdrawals a month, after which almost every bank charges you an “excess activity” fee.
        djrogers 8y ago
        Sinking funds aren't generally used for large numbers of purchases - but if they happen to be one month, you can just make a single transfer to a checking account.
        vonmoltke 8y ago
        I don't see the point of a savings account in this situation. Why are all your funds not just in the checking account?
        8y ago
- deleted 8y ago
  [deleted]
jandrewrogers 8y ago
This is because savings accounts are an anachronism from another era and serve no modern purpose. It is misleading to conflate savings accounts with savings; no one I know puts their savings in a savings account and many people with plenty of savings don't have one at all. It would be surprising if most Americans had and used a savings account in 2018. In the US, the median disposable income -- money you can either save or spend on luxuries after all typical living expenses -- is about $1000 per month. Savings are not an issue for the majority of Americans. Unless you define it as having a savings account with money in it.
- pjc50 8y ago
  Do they perhaps mean "free cash float", that is (regardless of what the account is called) money that is immediately available to spend without causing a cashflow disaster later in the month?
- gk1 8y ago
  What do you do with your cash if not put it into a savings account?
  - aantix 8y ago
    Checking account? Not sure why banks make any sort of distinction anymore.
    - gk1 8y ago
      I don't understand. Checking accounts have much lower interest rates than savings (or money market) accounts, so why keep cash in a checking account?
  - WillPostForFood 8y ago
    Given the extremely low interest rates savings accounts have been delivering, short term cash can go to wallet, or checking, and any cash you don’t need short term should go someplace that will earn more than a savings account, like a mutual fund or at least a CD.
fortythirteen 8y ago
Would you rather have <$1k in savings in America or have a decent savings in a 3rd world country? Equating income to quality of life is 1st world centric.
frockington 8y ago
That's probably because nobody uses savings accounts for large amounts of wealth. I have $0 in a savings account because a 3 month T note yields significantly more than the 1.4% Ally saving account that everyone seems to love

nkozyra 8y ago

What's the value of a "savings account" in 2018, though? Not to be flippant, but it's a bit anachronistic to even care about something that provides so little ROI, and if people are deriving greater meaning from that I'd hope the analysis is more nuanced.

caymanjim 8y ago
There's not much point in investing less than $1000. People are getting hung up on the "savings" part of this. It could be a checking account, it could be cash in a jar. The point is that it's the amount of money available that isn't tied up in material assets like real estate, a car, etc. or isn't invested in something like a 401(k).
- frockington 8y ago
  Than I have ~$500 most of the time. Why would anyone willing lose money every year by hoarding it in a savings account/in a jar
- vonmoltke 8y ago
  > People are getting hung up on the "savings" part of this. It could be a checking account, it could be cash in a jar. People are "hung up" on it because, per the linked article, the survey literally asked about savings accounts. I have more money sitting in cash at home than I do in my savings accounts. The only reason my wife and I have savings accounts is Bank of America's Keep the Change thing.
danesparza 8y ago
> What's the value of a "savings account" in 2018, though? Low risk emergency fund or sunk cost funds. If you purchase everything on credit or debt, you're asking for trouble in the long run. Debt or credit involves substantially more risk.
- vonmoltke 8y ago
  If you purchase everything from a savings account you are going to get eaten alive in withdrawal fees. Note the survey question literally asked about "savings accounts". I would answer that question with a number below $1,000, but I still have a significant reserve and no credit card balances.
  - djrogers 8y ago
    I haven't paid a withdrawl fee on a savings account in decades, and I use them for all my sinking funds.
    - mattkrause 8y ago
      Regulation D limits savings accounts to six withdrawals a month, after which almost every bank charges you an “excess activity” fee.
      - djrogers 8y ago
        Sinking funds aren't generally used for large numbers of purchases - but if they happen to be one month, you can just make a single transfer to a checking account.
        vonmoltke 8y ago
        I don't see the point of a savings account in this situation. Why are all your funds not just in the checking account?
        8y ago
deleted 8y ago
[deleted]

jandrewrogers 8y ago

This is because savings accounts are an anachronism from another era and serve no modern purpose. It is misleading to conflate savings accounts with savings; no one I know puts their savings in a savings account and many people with plenty of savings don't have one at all. It would be surprising if most Americans had and used a savings account in 2018. In the US, the median disposable income -- money you can either save or spend on luxuries after all typical living expenses -- is about $1000 per month. Savings are not an issue for the majority of Americans. Unless you define it as having a savings account with money in it.

pjc50 8y ago
Do they perhaps mean "free cash float", that is (regardless of what the account is called) money that is immediately available to spend without causing a cashflow disaster later in the month?
gk1 8y ago
What do you do with your cash if not put it into a savings account?
- aantix 8y ago
  Checking account? Not sure why banks make any sort of distinction anymore.
  - gk1 8y ago
    I don't understand. Checking accounts have much lower interest rates than savings (or money market) accounts, so why keep cash in a checking account?
- WillPostForFood 8y ago
  Given the extremely low interest rates savings accounts have been delivering, short term cash can go to wallet, or checking, and any cash you don’t need short term should go someplace that will earn more than a savings account, like a mutual fund or at least a CD.

fortythirteen 8y ago

Would you rather have <$1k in savings in America or have a decent savings in a 3rd world country? Equating income to quality of life is 1st world centric.

frockington 8y ago

That's probably because nobody uses savings accounts for large amounts of wealth. I have $0 in a savings account because a 3 month T note yields significantly more than the 1.4% Ally saving account that everyone seems to love