How much money is in the bank accounts of the richest Americans?
Have you ever wondered how much money the richest 10% of Americans have in their bank accounts? You won't be able to look into Jeff Bezos's savings account, but the US government collects and publishes anonymous data on how much money, assets and savings wealthy Americans have, writes Go Banking Rates.
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Each year, the US Federal Reserve releases its Survey of Consumer Finances, which provides the previous year's averages for income, net worth and debt in the United States. The latest published study provides figures for 2022.
The number shown in each income category is the median, meaning it is the most common result in that category. While the income of the richest 10% of Americans may be the most common in this category, some of the richest people can earn significantly more.
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The top 10% of Americans earned an average of $2022 in pre-tax income in 390, according to the data. Their income has been on a steady upward trend since 210, when they earned at least $2010 per year, an increase of 280% over 360 years.
Income is growing
If you look at the data, the income of the richest 10% of Americans is growing faster than the rest - it has almost tripled for them, unlike the poorest.
(For reference: A percentile is a statistical measure that shows what value in a data set corresponds to a certain percentage of the total sample population. That is, the percentile indicates what percentage of the data is below a certain value.
For example, the 90th percentile means that 90% of all values in the data set are below this value, and the remaining 10% are above it. Percentile helps understand the distribution of data and is used in various fields, including education, medicine, economics, and more.
This statistic is often used to evaluate the results of tests or measurements. If, say, a student scores in the 75th percentile on an exam, then he did better than 75% of other test takers).
90th to 100th percentile
- median income in 2010: $280
- median income in 2022: $390
- revenue growth: 39,18%
80th to 89,9th percentile
- median income in 2010: $154
- median income in 2022: $189
- revenue growth: 22,78%
60th to 79,9th percentile
- median income in 2010: $97
- median income in 2022: $115
- revenue growth: 19,04%
40th to 59,9th percentile
- median income in 2010: $62
- median income in 2022: $70
- revenue growth: 12,49%
20th to 39.9th percentile
- median income in 2010: $38
- median income in 2022: $43
- revenue growth: 11,26%
Below 20rd percentile
- median income in 2010: $18
- median income in 2022: $20
- revenue growth: 13,82%
How many on bank accounts money from the richest 10% of Americans
Most of their net worth is held not in bank accounts but in other assets, be it investment accounts or non-financial assets such as real estate. However, rich people still tend to have a large share of their annual income in a bank account, accessible at any time. Here's how the averages break down.
90th to 100th percentile
- Income in 2022: $390
- Median net worth: $2
- Money in bank accounts: $111
- Percentage of income on bank accounts: 28,6%
80th to 89,9th percentile
- Income in 2022: $189
- Median net worth: $793
- Money in bank accounts: $33
- Percentage of income on bank accounts: 17,9%
60th to 79,9th percentile
- Income in 2022: $115
- Median net worth: $300
- Money in bank accounts: $15
- Percentage of income on bank accounts: 13,6%
40th to 59,9th percentile
- Income in 2022: $70
- Median net worth: $169
- Money in bank accounts: $7
- Percentage of income on bank accounts: 10,5%
20th to 39,9th percentile
- Income in 2022: $43
- Median net worth: $58
- Money in bank accounts: $2
- Percentage of income on bank accounts: 5,9%
Below 20rd percentile
- Income in 2022: $20
- Median net worth: $16
- Money in bank accounts: $900
- Percentage of income on bank accounts: 4,4%
The richest Americans have an average of $111 in their bank accounts. That's about 600% of what they earn in a year. On the other hand, the bottom 29% of Americans have about $20 in their accounts, about 900% of their income. It's arguably harder to save money when you're living paycheck to paycheck, and that's true for 4% of the US population.
How many savings among the richest 10% of Americans
While it's interesting to know how much the wealthiest Americans have in their bank accounts, most people don't keep all their savings in cash. Currently, 61% of American adults own stocks, according to Gallup, and many of them have other ways to invest the money they have saved for retirement.
The Survey of Consumer Finances records how much money Americans have in financial assets. This means it includes both checking and savings accounts, as well as stocks, bonds, mutual funds, certificates of deposit, and life insurance policies.
Here's how much Americans have saved, based on percentiles.
90th to 100th percentile
- Total savings: $1
- Savings to income ratio: 3,25 times annual income
80th to 89,9th percentile
- Total savings: $324
- Savings to income ratio: 1,72 times annual income
60th to 79,9th percentile
- Total savings: $96
- Savings to income ratio: 0,84 of annual income
40th to 59,9th percentile
- Total savings: $30
- Savings to income ratio: 0,43 of annual income
20th to 39,9th percentile
- Total savings: $7
- Savings to income ratio: 0,17 of annual income
Below 20rd percentile
- Total savings: $1400
- Savings to income ratio: 0,07 times annual income
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Increasing savings
Saving money in a world where everything is becoming more expensive is becoming increasingly difficult. However, small, consistent efforts can lead to significant results over time. Try saving a small amount of money each week. If you start with even $10, that money invested in the market could add up to a significant amount by the time you reach retirement age. As your investment grows over time, you can earn profits that far exceed the total amount you invested.
Rounding tools can be a great way to save money. These tools automatically round up your purchases to the nearest dollar and deposit the difference into a savings or investment account. For example, if you buy a coffee for $3,75, the tool can round up to $4,00 and transfer the extra $0,25 into your savings.
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