Associated Press, by Josh Boak
WASHINGTON (AP) – A new study finds more Americans are moving money from checks on financial vehicles that pay investment returns and savings accounts.
An analysis by the JPMorganchase Institute found that people’s total cash reserves are increasing when they surveyed accounts of 4.7 million households and included new amounts in securities accounts, financial funds and certificates of deposits to assess the well-being of people.
Inflation-adjusted cash balances in check and savings accounts remain “low on a grown trajectory,” but with 2024 total cash reserves rising and with additional accounts included, it is approaching historical growth trends, the analysis says.
“Families in many income bands now look at the turnaround with their total cash,” said Chris Wheat, the institute’s president.
Wheat said it is “difficult to square the circle” as consumer spending stays strong despite lack of growth in checks and savings accounts. He said it appears that people are using other accounts to manage their cash rather than simply making long-term investments.
However, Wheat warned that the trend could be short-term and that the lab still has no evidence as to whether it will continue.
The analysis also found that total cash balances increased between 5% and 6% per year for households with incomes, typically with less than $35,000. The lowest income quartiles tend to have checks and savings account balances above $1,000, while the median balances in the highest income quartiles are above $8,000.
Original issue: July 21, 2025 9:37am EDT
