Bankrate’s 2025 Annual Emergency Savings Report
Many Americans have long struggled to build savings. However, high inflation and interest rates since the COVID-19 pandemic have continually made it difficult for people to save for emergencies.
According to a new Bankrate poll, one-third (33 percent) of Americans have more credit card debt than emergency savings — down from 36 percent in both 2024 and 2023. Another 13 percent of people don’t have credit card debt, but don’t have any emergency savings, either.
This data comes from Bankrate’s yearly Emergency Savings Report, an exclusive survey-based report conducted by Bankrate and polling partner SSRS. Since 2011, the survey has annually polled 1,000+ U.S. adults about their levels of debt and emergency savings. The most recent data, polled in January 2025, examines whether paying down debt or increasing emergency savings is a higher priority for Americans and if they have the same amount of emergency savings now as they did a year ago.
In the last several years, Americans have reckoned with a number of economic headwinds, from high inflation to a slowing job market. Now, many Americans may be determined to save money, as for the first time in Bankrate’s polling, more Americans say their savings increased, rather than decreased, year-over-year. Nearly 1 in 3 (30 percent) of U.S. adults have more emergency savings now than they did a year ago, while 27 percent have less.
The number of households reporting more savings than one year ago has been steadily increasing. 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.— Greg McBride, CFA, Bankrate Chief Financial Analyst
Bankrate’s insights on emergency funds and personal savings
33% of U.S. adults have more credit card debt than emergency savings, down from 36% in 2024 and 2023. That percentage is still higher than in 2022, when 22% of Americans had more credit card debt than emergency savings.
35% of U.S. adults are focused on both paying down debt and increasing their emergency savings at the same time. Otherwise, 28% of people say increasing emergency savings is a higher priority, and 24% of people say paying down debt is a higher priority.
41% of U.S. adults would use their savings to pay for an unexpected emergency expense (such as $1,000 for an emergency room visit or car repair). This is down from 44% in 2024.
Bankrate data center
Every week, Bankrate publishes proprietary surveys, studies and rate data, providing the latest data-driven insights on the state of Americans’ personal finances — including credit card debt, homeownership, insurance, retirement and beyond.
See more1 in 3 Americans have more credit card debt than emergency savings
Bankrate has polled Americans on their emergency savings and credit card debt since 2011. Between 2011 and 2022, less than 30 percent of Americans had more credit card debt than emergency savings. But in 2023, amid a period of high inflation, that percentage soared to 36 percent, where it stayed for two years.
Now, in 2025, the percentage of people with more credit card debt than emergency savings has fallen to 33 percent, but it’s still much higher than it was before 2023.
On the contrary, more Americans (53 percent) have more emergency savings than credit card debt. Those percentages have hovered between 51 percent and 55 percent since 2021. Another 13 percent of Americans say they have no credit card debt or emergency savings.
Source: Bankrate Emergency Savings Surveys
Generation-wise, millennials in 2025 are most likely to have more credit card debt than emergency savings, followed by Gen Xers:
- Gen Zers (ages 18-28): 27 percent
- Millennials (ages 29-44): 42 percent
- Gen Xers (ages 45-60): 39 percent
- Baby boomers (ages 61-79): 24 percent
Gen Zers, on the other hand, are the generation most likely to have no emergency savings or credit card debt:
- Gen Zers: 24 percent
- Millennials: 11 percent
- Gen Xers: 14 percent
-
Baby boomers: 10 percent
More Americans prioritize both paying down debt and increasing emergency savings, instead of focusing on one
Paying down credit card debt and increasing emergency savings are both important financial goals, but the majority of people aren’t doing both at the same time. Just above one-quarter (28 percent) of people are focusing only on building emergency savings, and 24 percent are only focusing on paying down credit card debt. More than one-third (35 percent) of U.S. adults are prioritizing both increasing emergency savings and paying down credit card debt at the same time:
Source: Bankrate Emergency Savings Survey, January 3-5, 2025
“With more than one-third of Americans prioritizing both emergency savings and credit card debt, it underscores how many households are in the position of having both high-cost credit card debt and being under-saved for emergencies,” Bankrate Chief Financial Analyst Greg McBride, CFA, says.
More than 1 in 4 Americans have less savings year-over-year
Today, many Americans’ savings look a little better than they did last year. In 2025, 27 percent of Americans say they have less savings now than they did a year ago, down from 32 percent who said so in 2024 and 39 percent who said so in 2023.
In both 2025 and 2024, less than one-third (30 percent) of Americans increased their amount of emergency savings year-over-year. That’s up from 26 percent in 2023:
Source: Bankrate Emergency Savings Surveys
In less positive news, 13 percent of Americans say they have no savings in 2025 and didn’t have any a year ago either.
Generationally, that breaks down as:
- Gen Z: 27 percent
- Millennials: 12 percent
- Gen Xers: 14 percent
- Baby boomers: 5 percent
As of January 2025, only around 2 in 5 Americans would pay for an emergency from their savings
Forty-one percent of people would pay a major unexpected expense (such as $1,000 for an emergency room visit or car repair). This is down from 44 percent a year prior, and after three years of progress, this is the lowest the percentage has been since 2021, when it was 39 percent:
Source: Bankrate Emergency Savings Surveys
Another 25 percent of people would use a credit card to pay for an unexpected $1,000 emergency expense and pay it off over time, up from 21 percent a year ago, and the same percentage seen in 2023.
“The cost of living continues to rise, prompting more individuals and households to turn to credit cards when in a bind,” Bankrate Senior Economic Analyst Mark Hamrick says. “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.”
Additionally, 13 percent of people would reduce their spending on other things to afford an unexpected $1,000 emergency expense, 13 percent would borrow from family or friends, 5 percent would take out a personal loan and 4 percent would do something else.
The economy is hurting Americans’ savings
Though inflation is no longer rising as quickly as it did in recent years, more people this year feel the economy has affected their savings. Nearly 3 in 4 Americans (73 percent) are saving less for emergency expenses due to inflation/rising prices, elevated interest rates or a change in income or employment. This percentage is up from 68 percent in 2024.
Source: Bankrate Emergency Savings Surveys
More than 2 in 3 Americans worry they wouldn’t be able to cover their living expenses if they lost their job
With unemployment expected to hit 4.4 percent by the end of 2025, the majority of Americans feel unprepared. More than 2 in 3 people (69 percent) would be very or somewhat worried they wouldn’t be able to cover their immediate living expenses over the next month if they were to lose a primary source of household income tomorrow (e.g., a job loss). That includes 46 percent who would be very worried — up from 42 percent in 2024.
Source: Bankrate Emergency Savings Survey, Dec. 6-9, 2024
Only 31 percent of people say they wouldn’t be too worried or wouldn’t be worried at all.
“We don’t know what the future of the economy might bring, but an increasing share of people are anxious about potential job loss or interruption in income,” Hamrick says. “By prioritizing saving, we can be better prepared for the unexpected and attain greater financial confidence and capability.”
Gen Zers are likelier than other generations to say they would be very or somewhat worried about having enough emergency savings to cover their immediate living expenses if they were to lose a primary source of income tomorrow:
- Gen Zers: 80 percent
- Millennials: 72 percent
- Gen Xers: 72 percent
- Baby boomers: 58 percent
The results of this data are only a few months after many Americans said their emergency savings weren’t where they wanted them to be. As of September 2024 polling in a separate Bankrate Emergency Savings Survey, 62 percent of people said they felt behind where they should be on saving for emergencies, including 37 percent who felt significantly behind and 26 percent who felt slightly behind. Only around a quarter (23 percent) of people said their emergency savings are on the right track.
Also, at the time, 33 percent of people said they had less emergency savings than they did at the beginning of 2024. Additionally, 17 percent of people said they had no emergency savings at the beginning of 2024 and still had none in September.
As of June 2024, over 1 in 4 people have no emergency savings
Keeping at least three months of expenses saved can help you weather a job loss, major unexpected bill or other sudden expense. However, 27 percent of U.S. adults have no emergency savings at all, the highest percentage since Bankrate asked the question in 2020.
Generationally, Americans vary widely in their emergency savings levels. Over 1 in 3 (34 percent) millennials have no emergency savings, the highest percentage of any generation:
- Gen Zers: 29 percent
- Millennials: 34 percent
- Gen Xers: 31 percent
- Baby boomers: 16 percent
Source: Bankrate Emergency Savings Survey, May 17-20, 2024
Almost 3 in 10 (29 percent) of people have some savings, but not enough to cover three months’ expenses. That percentage hasn’t changed much since 2022 and 2023, when 28 percent and 30 percent of people said the same, respectively.
In 2024, that percentage is far higher for some generations, specifically Gen Zers. More than 2 in 5 (44 percent) Gen Zers have some savings, but less than would cover three months of expenses, the most of any generation.
Lastly, only 28 percent of people have at least six months’ expenses saved, down from 30 percent in 2023. Another 16 percent of people have between three and five months’ expenses saved, the lowest percentage since 2018.
How to start saving now
If you’re one of the 27 percent of Americans with no emergency savings, know it’s not too late to start. Bankrate’s savings guides can show you how to begin today, even if you’ve never opened a savings account before.
How to start savingNearly half (46 percent) of baby boomers have at least six months of expenses saved. McBride points out that building an emergency savings cushion doesn’t happen overnight, so the years baby boomers have had to save puts them ahead compared to other generations.
But even if you haven’t had decades to save, it’s not too late to start saving more today.
“To establish an emergency savings cushion, or add to what you have, set up a direct deposit from your paycheck or an automatic transfer from your checking account into a dedicated savings account,” McBride says. “Automating the savings is the key to making it happen, particularly with household budgets so tight.”
Over half of Americans are uncomfortable with their level of emergency savings
Just under 6 in 10 (59 percent) U.S. adults are uncomfortable with their emergency savings, including 32 percent who are very uncomfortable and 27 percent who are somewhat uncomfortable. On the other hand, 41 percent are comfortable with their emergency savings, including 14 percent who are very comfortable and 28 percent who are somewhat comfortable.
Two-thirds (66 percent) of Gen Xers are uncomfortable with their emergency savings, the highest percentage of any generation (compared to 63 percent of Gen Zers, 60 percent of millennials and 51 percent of baby boomers:
Source: Bankrate Emergency Savings Survey, May 17-20, 2024
The high percentage of people uncomfortable with their emergency savings can be attributed, in part, to rising inflation. In 2021, 48 percent of people said they were uncomfortable with their level of emergency savings. The next year, as inflation rose, the percentage jumped to 58 percent. Inflation has remained stubbornly high, and the percentage of people uncomfortable with their savings has since plateaued:
- 2020: 44 percent
- 2021: 48 percent
- 2022: 58 percent
- 2023: 57 percent
- 2024: 59 percent
Majority needs at least 3 months of expenses saved to feel comfortable
The majority (89 percent) of Americans say they would need at least three months of expenses saved in order to feel comfortable. Moreso, 63 percent would need to have at least six months of expenses saved to feel comfortable and 26 percent would need between three and five months of expenses saved.
Most generations roughly agree they would need at least three months of expenses saved to feel comfortable. However, 72 percent of baby boomers and 70 percent of Gen Xers would need at least six months of expenses saved, higher percentages compared to younger generations:
Source: Bankrate Emergency Savings Survey, May 17-20, 2024
Amount of savings versus comfort with savings
People who have at least three months’ worth of emergency savings tend to be most comfortable with their amount of savings. Nearly three-quarters (72 percent) of U.S. adults comfortable with their emergency savings have enough to cover at least three months of expenses. Specifically, 52 percent of people comfortable with their level of emergency savings have at least six months of expenses saved.
On the other hand, 40 percent of people who are uncomfortable with their emergency savings have no emergency savings and 36 percent have something saved, but less than three months of expenses.
3 tips on building your emergency fund amidst high inflation
Building an emergency fund can be a lifeline if your income decreases or you lose your job. Here are three tips on how to start and maintain an emergency fund to prepare for uncertainty.
1. Figure out how much you need in emergency savings
Experts commonly recommend saving three to six months of expenses in case of emergencies. For example, if your monthly bills total $2,000 a month, saving $6,000 will allow you to pay your bills for a short time if you lose your main source of income. This is not a concrete rule; you may need to save more if you are self-employed and anticipate a lean month, or if you are preparing for a major lifestyle change, like an upcoming move or a new baby.
2. Open a savings account just for emergencies
Different emergency funds allow you to protect your savings and allow you quick access when you need the money. An online savings account, money market account, money market mutual fund or a separate savings account with your existing bank or credit union can allow you to save emergency funds for the future.
“An action item for this new year should be to prioritize financial well-being,” Hamrick says. “At the top of list, use direct deposit for a dedicated emergency fund. By choosing a high-yield insured savings account, your money will be working for you and accessible when needed.”
3. Make a budget around savings
You may already have a budget in place to make room for saving more, but make sure you stick to your good habits. Rebuilding your savings, or starting to save for the first time, can be easier by automatically transferring money to your savings each month or taking on side hustles for more income.
You may also like
Discover student loans: 2024 alternatives
