NEWS HEADLINES: States Where Americans Save — And Where They Don’t

Hawaii residents possess 21 times more in cash savings than their Mississippi counterparts, revealing a staggering economic divide across America that mirrors broader wealth inequality trends.

Key Takeaways

• Hawaii leads the nation with a median bank balance of $43,600, while Mississippi residents have only about $2,000 on average.
• Southern states consistently show lower savings rates, correlating with their higher poverty levels.
• Despite having the most millionaires, New York ranks just 22nd in median bank balances, suggesting significant wealth disparity.
• There’s a strong correlation between regional median incomes and savings figures across most states.
• To be in the top 1% nationally requires nearly $788,000 in annual income, but this threshold varies dramatically by state.

America’s Savings Divide: State by State Analysis

The economic divide across America has never been more evident than in SmartAsset’s recent analysis of cash savings trends. Their examination of 2022 bank deposit data (adjusted for 2024) reveals dramatic differences in Americans’ financial security depending on where they live. Hawaii residents maintain the highest median bank balance at $43,600, a figure that dwarfs Mississippi’s meager $2,000 median savings. This 21-fold difference between the highest and lowest-ranking states paints a troubling picture of financial inequality that persists across regional lines, with devastating implications for Americans’ ability to weather financial emergencies or plan for retirement.

The pattern of savings disparity largely follows predictable economic trends. States with higher median incomes generally show stronger savings behavior, though there are notable exceptions. While Hawaii’s economy ranks just 38th nationally in size, its high median income and significant millionaire population drive its impressive savings figures. Conversely, states throughout the South dominate the bottom of the savings rankings, a reflection of the region’s historically higher poverty rates and lower wages that have persisted despite President Trump’s economic initiatives.

Wealth Concentration and Regional Disparities

The data shows a significant concentration of wealth beyond just savings accounts. To be counted among the top 1% of American earners requires an annual income of nearly $788,000 nationally, but this threshold varies dramatically by state. In West Virginia, earning approximately $420,000 annually places you in this elite group, while California and Connecticut demand seven-figure salaries exceeding $1 million. This disparity reflects not just different costs of living but fundamental economic imbalances that have developed across regions over decades.

“There’s either lifestyle or business opportunities in all of these places,” says Jaclyn DeJohn director of economic analysis at SmartAsset. “On average, you’re probably saving 6 or 7% of your income every year on that factor alone.”

The wealth gap appears particularly stark when examining outlier states. New York, despite having the most millionaires of any state, ranks just 22nd in median bank balances. This suggests extraordinary wealth concentration, with a small percentage of ultra-wealthy individuals skewing averages while the typical New Yorker struggles to accumulate savings. Texas shows similar patterns, with its large economy failing to translate to substantial median savings for its residents, highlighting how economic growth doesn’t necessarily benefit all citizens equally.

The Growing Wealth Gap

The savings disparity is just one symptom of America’s widening wealth gap. Since 1979, the top 1% of earners have seen their wages grow by an astonishing 172%, while the bottom 90% experienced only 33% growth over the same 43-year period. This acceleration has only intensified in recent years, with CEO compensation now averaging 290 times that of typical workers — a dramatic increase from the 21:1 ratio seen in 1965. These trends have continued despite various policy initiatives meant to address inequality, raising serious questions about the effectiveness of government interventions.

“The question is, What does it mean to be rich?” asks Elise Gould a senior economist at the Economic Policy Institute, a left-leaning thinktank. “It takes about $800,000 to be in the top 1% of earners in the U.S., but you could be a one-percenter in your state making less.”

The state-by-state analysis done by Smart Asset, reveals more than just financial statistics — it exposes fundamental differences in regional economies and opportunities. Southern states consistently rank at the bottom for both income and savings metrics, with Mississippi, Kentucky, Arkansas, and West Virginia showing particularly concerning figures. These patterns align with higher poverty rates in these regions, creating a cycle where residents struggle to build wealth. The data makes clear that geographic location remains one of the strongest predictors of financial security in America today, challenging the notion of equal opportunity across all states.