Average Checking Account Balance

Checking account balances by gender.

Average checking account balance. Banks use the average to calculate interest so they will usually provide this number for you however understanding how to calculate it yourself is useful to validate the bank s calculation. The balance at a given moment doesn t always offer an accurate picture of an account. The average daily balance is used by credit card companies to calculate interest. Average balances can give a more accurate measure of its typical worth over a given period.

Average checking account balance is the average amount that exists in one month or 30 days. On average households led by men have nearly three times larger checking account balance than those led by women. Your account has a day end balance of 200 daily from 1 to 10 july so total amount of daily balances for 10 days is. Bank account balances can change almost constantly as you spend and earn money and transfer funds.

The difference grows even larger when comparing median checking account balances. Again the average bank account balance for those groups is higher due to a small portion of households with significant savings. The median transactional account balance for those under 35 years old was 2 600. For example in the bottom 20th percentile the average account balance is 4 600 and the top 10th percentile of households keeps over 230 000 in the bank.

200 x 10 days 2 000. Categorizing the survey responses based on the head of household s gender revealed another significant discrepancy. Average checking account balance by gender. Male headed households in the survey reported an average checking balance that was more than double the average for female headed households.

By the time we reach 75 and above the median is 10 000. The male median checking account balance is nearly four times larger than the female. On average households led by men have nearly three times larger checking account balance than those led by women. Since the survey first started the average has increased with the exception of the 2009 recession.

Check out the full breakdown of median transactional account balance by age. To avoid incurring any service charges a minimum average daily balance needs to be maintained in your account. Below is a simple illustration on how average daily balance is calculated. During the years between 35 and 44 balances grow significantly.

The average checking account balance for americans is 10 545 according to the survey of consumer finances scf conducted by the federal reserve. The average balance is the average amount of money held in an account or due on a loan over a set period of time.