The U.S. personal savings rate measures what percentage of after-tax income households put aside instead of spending

The personal savings rate is the share of disposable income—money left after taxes and essential bills—that Americans don't spend. The Federal Reserve tracks this monthly. In recent years, the rate has ranged from around 3% to over 33%, depending on economic conditions, government payments, and whether people are worried about their jobs.

The rate matters to you because it reflects how much cushion most households have. When the savings rate is low, it means people are spending nearly everything they earn, which leaves little room for emergencies. When it's high, it usually signals either that people are cautious about the future or that they received one-time payments like stimulus checks or tax refunds.

The savings rate is not the same as how much money you personally should save. It's a national average that includes wealthy households (which save a lot) and households living paycheck to paycheck (which save almost nothing). Your own situation may look very different from the national number.

Key Takeaways

  • The U.S. personal savings rate fluctuates monthly and is published by the Federal Reserve, ranging from 3% to over 33% in recent decades.
  • The rate spiked during the COVID-19 pandemic and after stimulus payments, then fell as inflation eroded purchasing power and people drew down savings.
  • A low national savings rate does not mean you should save less; it reflects that many households have little left to save after expenses.
  • You can find the current savings rate on the Federal Reserve's website or through the Bureau of Economic Analysis, updated monthly.

Why the savings rate changes month to month

The savings rate moves because of three main forces: income changes, spending patterns, and one-time payments. When people receive tax refunds, stimulus checks, or insurance payouts, they often save part of that money rather than spend it immediately, which pushes the rate up. When those windfalls stop, the rate typically falls.

Job losses or wage cuts lower the savings rate because households spend down savings to cover bills. Inflation also affects the rate—when prices rise faster than wages, people's purchasing power shrinks, and they may save less because they're spending more on the same goods. Conversely, when people feel secure about their jobs and the economy, they tend to spend more freely, which lowers the savings rate.

Seasonal patterns matter too. Spending tends to spike in November and December, which can depress the savings rate in those months. Tax refund season (February through April) often raises it.

How the savings rate spiked during the pandemic and fell after

In March 2020, the U.S. savings rate jumped to 33%—the highest on record—because lockdowns closed stores, people couldn't travel or dine out, and the government sent stimulus payments. Households saved that money instead of spending it. The rate stayed elevated through 2020 and into 2021 as additional stimulus checks arrived.

By late 2021 and into 2022, the savings rate fell sharply. Inflation accelerated, eroding the value of money people had saved. Stimulus payments ended. Households began spending down the extra savings they'd accumulated. By 2023, the rate had settled into the 3% to 5% range, closer to pre-pandemic levels.

This cycle shows how the national savings rate responds to major economic shocks and government action. It does not mean Americans became worse savers; it means the conditions that allowed saving changed.

Where to find the current savings rate

The Federal Reserve publishes the personal savings rate monthly as part of its economic data releases. You can find it on the Federal Reserve's website under "Economic Data" or search for "personal savings rate." The data is usually released about a month after the month it covers—so March data comes out in late April.

The Bureau of Economic Analysis (part of the U.S. Department of Commerce) also publishes the same figure in its monthly Personal Income and Outlays report. Both sources use the same underlying data and will show you the same number.

The rate is expressed as a percentage. A 5% savings rate means that for every $100 of disposable income, the average American household saved $5 and spent $95.

Why your personal savings rate may differ from the national average

The national savings rate includes everyone—billionaires, retirees living on fixed incomes, young families with student debt, and people earning minimum wage. Wealthy households save a much higher percentage of their income, which pulls the national average up. Meanwhile, millions of households save almost nothing because they're living paycheck to paycheck.

Your own savings rate depends on your income, expenses, debt, and financial goals. Someone earning $200,000 a year might save 20% of their income. Someone earning $30,000 might save 0% because rent, food, and transportation consume everything. Both are normal. The national average tells you about the economy overall, not about what you should do.

If you're trying to build an emergency fund or save for a goal, focus on your own situation rather than the national number. A financial advisor or budgeting tool can help you figure out what percentage of your income you can realistically set aside.

How government payments and refunds affect the savings rate

Tax refunds, stimulus checks, insurance payouts, and other government or business refunds temporarily boost the national savings rate because people often save part of these windfalls. If you receive a $1,500 tax refund and save $1,000 of it, that $1,000 counts toward the national savings rate for that month.

This is one reason the savings rate can jump in spring (tax refund season) or after major government payments. It's also why the rate fell sharply after stimulus payments ended—the source of extra income dried up, and households had to rely on regular paychecks and savings again.

Understanding this connection helps explain why the savings rate is not a stable measure of how thrifty Americans are. It's more of a snapshot of current economic conditions and recent cash flows.

Frequently Asked Questions

Is a high savings rate good or bad for the economy?

A very high savings rate can signal that people are anxious about the future and cutting back on spending, which can slow economic growth. A very low rate suggests people are confident but may be vulnerable to job loss or emergencies. Moderate savings—around 7% to 10%—is often seen as a healthy balance between security and spending that supports businesses.

How does the U.S. savings rate compare to other countries?

The U.S. savings rate is typically lower than rates in countries like Germany, Japan, and South Korea, where cultural and economic factors encourage more saving. However, direct comparisons are tricky because countries measure savings differently and have different tax systems, retirement structures, and social safety nets.

Does my tax refund count toward the national savings rate?

Yes, if you save part of your refund rather than spend it, that portion counts toward the national savings rate for the month you receive it. If you spend the entire refund, it does not affect the savings rate. This is why the rate often rises during tax refund season.

Can I use the savings rate to predict a recession?

A falling savings rate sometimes precedes economic trouble because it can signal that households are running out of cushion. However, the savings rate alone is not a reliable recession indicator. Economists look at many measures together—job growth, consumer confidence, interest rates, and others—to forecast economic downturns.