Monthly personal savings as a share of disposable income in the U.S. 2015-2024

In January 2024, the personal saving rate in the United States amounted to 3.8 percent, which is a lower figure than a year earlier. The personal saving rate is calculated as the ratio of personal savings to disposable personal income. Within the topic of personal savings in the U.S., there are different goals and reasons for saving.

What are personal savings?

Saving refers to strategies of accumulating capital for future use by either not spending a part of one’s income or cutting down on certain costs. Saved money may be preserved as cash, put on a deposit account, or invested in various financial instruments. Investing usually incorporates some level of risk which means that part of the invested money can be gone. An example of a relatively safe investment would be saving bonds, such as the debt securities issued by the U.S. Department of the Treasury.

Saving trends internationally

The personal saving rate in the United States decreased a lot in 2021 and, particularly in 2022, after the peak reached in 2020. The reason for that increase in the savings rate that year might be related to the measures to contain the COVID-19 pandemic. The value of personal savings in the United Kingdom has also followed a similar trend. Nevertheless, the ability to save, as well as the average savings as a share of personal income across countries can also vary significantly depending on multiple factors affecting each territory.