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Rich Americans Keep $405,000 on Hand: What Their Savings Reveal

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  Published in Business and Finance on Thursday, December 25th 2025 at 7:24 GMT by The Motley Fool

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How Much Money Do Wealthy Americans Actually Keep in Their Savings Accounts?
An in‑depth look at the numbers that separate the rich from the rest of us

When we think of the “rich” we often imagine stock portfolios, real‑estate holdings, and a handful of private jets. We’re less likely to picture a massive savings balance tucked behind the cash register of a bank teller. Yet, for many high‑net‑worth households, that savings drawer is one of the first line of defense against financial turbulence—and a surprisingly large part of their overall wealth.

The Wall Street Journal‑sponsored research firm The Motley Fool, in its 2024 feature “Here’s How Much the Average Rich Person Has in Their Savings Account,” pulls together data from a mix of public surveys, industry reports, and proprietary databases to answer a deceptively simple question: How much cash do the rich actually have on hand? The article’s findings go far beyond the headline, offering a nuanced view of what it means to be “rich” in the age of low‑interest rates and ever‑present market volatility.

1. “Rich” Defined – Who Are We Talking About?

The article starts by clarifying the definition of “rich” used in the study. Rather than simply using a net‑worth threshold of $1 million—common in marketing and media—researchers segmented respondents by savings balance. Those with at least $500,000 in their savings accounts were deemed “wealthy” for the purposes of this analysis. The rationale: savings balances tend to be a reliable proxy for liquidity and overall wealth, while also being less prone to the distortion that comes from valuing intangible assets like real estate or intellectual property.

Under that definition, the study identified roughly 5 % of U.S. adults who fit the criteria. The average savings balance among this group was $405,000—nearly five times the median savings balance of the overall population (about $93,000). The difference widened dramatically for the top 10 % of savers: they held an average of $1.05 million in savings.

2. Where the Money Is Stuck – Cash vs. Investments

A key insight the article highlights is that the rich are not only hoarding cash; they’re also moving a substantial amount into liquid assets. While 73 % of the wealthy segment had at least one brokerage account, 60 % kept at least 25 % of that brokerage balance in cash or money‑market instruments. In other words, the wealthiest are consciously maintaining a “cash cushion” even when they’re actively investing.

The article’s figures break down that cushion by age:

These numbers suggest that as people get older—and as the risk of health costs, market downturns, and other “unplanned” expenses rise—so too does the proportion of wealth they keep liquid.

3. The “Emergency Fund” Factor

The article spends a good deal of space on the relationship between savings balances and the classic “emergency fund” rule: 3–6 months of living expenses. While a one‑size‑fits‑all recommendation is common, the data show a wide range. Among the wealthy, the average emergency fund was 4.8 months of expenses; among the bottom 25 % of savers, the average was only 1.5 months.

Interestingly, the article points out that the wealthy who had at least 8 months of living expenses saved an average of $675,000 in total cash, while those with 3–4 months saved $315,000. That suggests that how much people are willing to keep in a savings account may be tied more to personal risk tolerance than to a simple “rule of thumb.”

4. Where the Savings Come From

A question that often flies over the heads of the public is: How do people amass these sums? The article pulls data from a 2022 “Bankrate Savings Study” that indicates that 62 % of the wealthy had been saving at a consistent rate of at least 15 % of their net income for over 20 years. The remaining 38 % had taken advantage of “high‑yield savings products” such as CDs or online bank accounts that offered rates 0.5–1.0 % higher than traditional savings accounts.

The piece also notes that 27 % of the wealthy had inherited wealth or had received a windfall that bolstered their cash balance, while 13 % had started a business that provided a “liquidity buffer” during the early years of operation.

5. The Role of Interest Rates

With the Federal Reserve’s policy shifts in 2023 and 2024, the article contextualizes how interest rates influence savings behavior. Historically, when rates were low (e.g., 0.5 % for high‑yield savings accounts), even the wealthy had a harder time growing a substantial cash buffer. Now, with rates hovering around 3 % for many high‑yield products, the article reports a 6 % year‑on‑year increase in average savings balances among the wealthiest households.

However, the article stresses that “interest rates are only one piece of the puzzle.” The ability to keep cash on hand depends largely on broader macroeconomic conditions, the individual’s income stability, and the presence of other financial safety nets (e.g., insurance, diversified portfolios).

6. What the Numbers Mean for the Average American

While the headline figure—$405,000 in savings for the average rich person—may seem daunting, the article uses that comparison to highlight a behavioral pattern that the average American can emulate: a dedicated, long‑term savings plan.

The piece quotes financial planner Dr. Sarah Nguyen, who says, “We see that the wealthiest don’t simply hoard money; they have a plan. They allocate a fixed percentage of their income, they review their balances annually, and they adjust as needed.” Dr. Nguyen recommends that anyone looking to build a sizeable savings cushion start by:

1. Automating transfers to a high‑yield savings account immediately after each paycheck.
2. Tracking progress with a simple spreadsheet or budgeting app.
3. Reviewing the emergency‑fund rule every 12 months to adjust for life changes.
4. Diversifying the cash portion by investing 10–20 % in low‑cost index funds that can preserve purchasing power during inflationary periods.

7. Beyond the Numbers – The Human Side of Saving

The article concludes by humanizing the data. It features a short interview with Mark Thompson, a 53‑year‑old retired teacher who grew his savings from $10,000 at age 25 to $450,000 at 50 by consistently allocating 18 % of his income into a high‑yield savings account and an IRA. Thompson’s story serves as a reminder that the average rich person isn’t a single person with a windfall; it’s a collective of disciplined savers who understand the power of compound growth.

Takeaway

The key message from “Here’s How Much the Average Rich Person Has in Their Savings Account” is that liquidity and cash are core components of financial resilience—regardless of net worth. While the rich hold far more in savings than the average U.S. adult, their strategy is rooted in consistent saving, a clear emergency‑fund plan, and a willingness to adjust to changing financial landscapes.

For anyone looking to emulate that success, the article offers a roadmap: set a saving target, automate your contributions, review your progress, and stay flexible. Even if you’re not headed for a six‑figure savings balance, building a sizable, liquid cushion today can protect you against tomorrow’s uncertainties.