According to the latest survey of GoBankingRates, 28% of Americans have nothing in their savings accounts and the other 21% don't even have savings account.
The survey was conducted to 5000 people and results show that only 29% of the respondents have at least $1,000 or more in their savings account. Moreover, less than 10% of millennials said that they have more than $10,000 in their savings account. Nine percent said they keep only enough money in their savings accounts to meet the minimum balance requirements and avoid fees.
A similar survey of 1,000 people by personal finance site, Bankrate, supports this result. The Bankrate survey found out that 62% of Americans have no emergency funds such as a $1,000 emergency room visit. When faced with an emergency, Americans nowadays raise money either by reducing spending elsewhere (26%), borrowing from family and/or friends (16%) or using credit cards (12%).
However, this result from GoBankingRates and Bankrate conflicts with that of America Saves, a campaign from the Consumer Federation of America. The latter did a survey on 1,000 people three times a year. Their latest survey showed that people's interest, effort and effectiveness to personally save was on the rise in September.
America Saves surveys tell us that top earners of the country have higher levels of savings interest, effort and effectiveness than the rest of the population.
"While no trends over the past two years are yet evident, it is encouraging that the latest Personal Savings Index numbers are so high," stated Stephen Brobeck, executive director of the Consumer Federation of America and a founder of America Saves.
And according to the U.S. Commerce Department's Bureau of Economic Analysis, Americans save 4.6% of their disposable income in August on the average.
Most financial counselors recommend three to six months amount of important expenses need to be kept in an emergency fund. But, Americans seem to not mind the advice at all.
Which percentage of American savers do you belong?
