Nearly 1 in 3 Americans Have More Emergency Savings Than a Year Ago: Bankrate Survey

Most Americans plan to manage emergency expenses using their savings, with credit cards being the second choice.

A man holds up U.S. currency, in this file photo. Yasin Akgul/AFP via Getty Images

A sizable number of Americans have seen their emergency savings rise in 2025 compared with last year, but a significant proportion continue to face difficulties meeting emergency expenses from their savings alone, according to a recent report from consumer services company Bankrate.

“Nearly 1 in 3 (30 percent) of U.S. adults have more emergency savings now than they did a year ago,” the company stated in the Feb. 13 emergency savings survey report. This is the same share as in 2024, and is up from 26 percent in 2023. The annual survey, taken in January, was conducted among more than 1,000 people.

“The number of households reporting more savings than one year ago has been steadily increasing,” Greg McBride, chief financial analyst at Bankrate, said.

“This is evidence that as the pace of inflation has slowed, it has enabled more Americans to make progress in building, or rebuilding, their emergency savings.”

The 12-month inflation rate in January was 3 percent, down slightly from 3.1 percent in January 2024, but a marked decrease from 6.4 percent in January 2023.

Meanwhile, the share of U.S. citizens who said they have less savings now than they did a year ago has been declining. This year, 27 percent of respondents reported such a trend, down from 32 percent in 2024 and 39 percent in 2023.

Although many people are saving more for emergencies, only 41 percent of Americans said they are in a position to pay for unexpected expenses, such as $1,000 in emergency room visits or car repairs, from their own savings. This is down from 44 percent last year and is the lowest since 2021.

After savings, credit cards are people’s top choice when financing $1,000 in emergency expenses, with 25 percent of respondents opting for this path. This is up from 21 percent in 2024.

“The cost of living continues to rise, prompting more individuals and households to turn to credit cards when in a bind,” Mark Hamrick, senior economic analyst at Bankrate, said.

“They are a terrific tool when used wisely and effectively. But with interest rates still high, we need to avoid a deepening debt burden which could make it more challenging to save.”

A Bankrate report from January revealed similar findings about how challenging it is for Americans to afford $1,000 in emergency expenses. A full 59 percent were found to not be in a position to use their savings to cover such costs, up from 56 percent last year.

Hamrick said the United States is essentially a “paycheck-to-paycheck nation.” Fewer Americans have a financial safety net for meeting unexpected expenses despite steady economic growth and low unemployment levels, he said.

Low Savings, Debt Issue

The U.S. personal savings rate—the percentage of income left after paying taxes and spending money—has been at a low level since the COVID-19 pandemic, according to data from the U.S. Federal Reserve Bank of St. Louis.

Before the COVID-19 pandemic, the rate remained largely above the 5 percent level. During the COVID-19 pandemic, the rate shot up into the double digits as Americans were forced to stay in their homes. As people began withdrawing from the accumulated savings, the rate began to drop.

Since 2022, the personal savings rate has mostly remained below 5 percent, only breaching the level in a few instances.

Persistently elevated inflation is one contributor to low savings. Although the 12-month inflation rate has come down over the past few years, the long-term effect of inflation has resulted in rising prices for goods and services.

St. Louis Fed data show that between January 2021 and January 2025, the average price of a dozen Grade A eggs jumped by more than 237 percent.

During this period, the cost of a gallon of whole fortified fresh milk increased by 16 percent, the cost of a pound of white pan bread jumped by more than 24 percent, and the cost of a pound of fresh whole chicken rose by nearly 30 percent.

As household expenses keep rising because of inflation, many people are left with little to no money to save.

Amid low savings and high inflation, Americans are also stressed by debt. A Feb. 13 study by digital personal finance company Achieve found that 26 percent of U.S. households had accrued debt over the past three months, slightly lower than the 28 percent found in the previous study.

“[The] latest household debt data shifted slightly in a positive direction, but we can’t ignore the long-term financial impact debt has on consumers,” Achieve co-founder Andrew Housser said.

“For people struggling to make ends meet and who feel like they have no other option but to take on more debt, it can take months, if not years, to regain financial stability.”