Keeping three to six months of expenses in your savings account could be a lifesaver if you lose your job or have a pricey accident. In today’s economy, when rising prices and higher tariffs make essentials more expensive, having at least three months of savings is more important than ever. But new Bankrate data shows that a large percentage of Americans don’t have three months of expenses saved, and many people don’t have any emergency savings at all.
This data comes from Bankrate’s yearly Emergency Savings Report, an exclusive survey-based report conducted by Bankrate and polling partners SSRS and YouGov Plc. 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 May 2025, examines how much emergency savings Americans have, their comfort with their level of savings and how much savings they would need to feel comfortable.
In the last several years, Americans have reckoned with a number of economic headwinds, from high inflation to a slowing job market, making it harder for them to save. Many are still determined to save money, but given the high percentage of people without emergency savings, they may be struggling to do so in today’s turbulent economy.
More emergency savings equates to peace of mind. The majority of Americans feel they’d need enough to cover at least six months’ expenses to feel comfortable.
— Greg McBride, CFA, Bankrate Chief Financial Analyst
Bankrate’s insights on emergency funds and personal savings
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Nearly a quarter of Americans have no emergency savings
While experts typically recommend keeping three to six months of expenses saved for emergencies, in reality, many people don’t have nearly that much saved. Only 46 percent of Americans have enough emergency savings to cover three months of expenses.
Otherwise, 30 percent of Americans have some emergency savings, but not enough to cover three months’ expenses. Another 19 percent could cover three to five months of expenses from their emergency savings, and 27 percent have enough to cover six months of expenses. Nearly 1 in 4 (24 percent) of Americans have no emergency savings at all.
Source: Bankrate Emergency Savings Surveys
Generation-wise, Gen Zers (ages 18-28) are likelier than older Americans to not have savings, or to have very little savings. Bankrate Chief Financial Analyst Greg McBride, CFA, says that it takes years of consistent saving to reach a suitable amount in emergency savings, especially as people grow older and they take on more financial responsibilities, such as buying a home or raising a family.
Emergency savings levels, by generation
| Gen Zers (ages 18-28) | Millennials (ages 29-44) | Gen Xers (ages 45-60) | Baby boomers (ages 61-79) | |
|---|---|---|---|---|
| No emergency savings | 34% | 28% | 24% | 16% |
| Some, but less than would cover three months’ expenses | 37% | 31% | 34% | 20% |
| Three to five months’ expenses | 18% | 16% | 22% | 22% |
| Enough to cover six months’ expenses or more | 10% | 25% | 20% | 41% |
Source: Bankrate Emergency Savings Survey, May 16-19, 2025
The majority of people are uncomfortable with their level of savings
Sixty percent of Americans are uncomfortable with their level of emergency savings — 31 percent are very uncomfortable, and 29 percent are somewhat uncomfortable.
Only 40 percent of people are comfortable with their level of emergency savings, including 27 percent who are somewhat comfortable and 13 percent who are very comfortable.
Source: Bankrate Emergency Savings Survey, May 16-19, 2025
A majority (80 percent) of people who are comfortable with their emergency savings could cover at least three months of expenses, including 51 percent who could cover at least six months of expenses. Among those uncomfortable with their emergency savings, 76 percent would be unable to cover three months of expenses, including 36 percent who have no emergency savings at all.
Gen Zers and Gen Xers (ages 45-60) are the least likely to feel comfortable with their emergency savings — 29 percent and 31 percent, respectively — compared to 40 percent of millennials (ages 29-44) and 52 percent of baby boomers (ages 61-79).
There’s a wide gap between how much savings people would need to feel comfortable and how much they have
A majority (85 percent) of Americans say they would need at least three months of expenses in emergency savings to feel comfortable, but only 46 percent of people have that much. Similarly, 63 percent of people say they would need to have at least six months of expenses in emergency savings to feel comfortable, but only 27 percent of people have that much.
“Just as inflation drove household expenses higher, it also undermined the comfort level Americans have with their emergency savings,” McBride says. “Since prices spiked in 2022, the percentage of households comfortable with their emergency savings has hovered between 40 percent and 43 percent, down notably from 51 percent in 2021 and 54 percent in 2020.”
Source: Bankrate Emergency Savings Survey, May 16-19, 2025
Notably, nearly 1 in 3 (31 percent) of Gen Zers say they would need enough emergency savings to cover three to five months of expenses to feel comfortable, and 50 percent say they would need enough to cover six months of expenses.
Meanwhile, 61 percent of millennials, 66 percent of Gen Xers and 70 percent of baby boomers feel they would need at least six months of expenses saved to feel comfortable.
Millennials, parents are most likely to have tapped their emergency savings in the past year
More than 1 in 3 U.S. adults (37 percent) used their emergency savings in the past 12 months; another 39% didn’t, as of February 2025. Concerningly, 19% of people said they don’t have any emergency savings at all.
Source: Bankrate Emergency Savings Survey, Feb. 11-14, 2025
Generation-wise, millennials are the likeliest generation to say they tapped their emergency savings in the last 12 months, followed by Gen Xers:
- Gen Zers: 34 percent
- Millennials: 42 percent
- Gen Xers: 38 percent
- Baby boomers: 33 percent
Many Americans who dipped into their emergency savings in the past year pulled $1,000-$2,499
More than 1 in 4 people (26 percent) who pulled from their emergency savings in the past 12 months (as of February 2025) pulled between $1,000 and $2,499, a higher percentage than any other amount suggested by Bankrate. People also commonly pulled between $500 and $999 (22 percent) or less than $500 (18 percent).
McBride says that unpredictable expenses or fluctuating income can cause people to pull from their emergency savings regularly. Without sufficient emergency savings, they may be forced to take on high-interest credit card debt to cover their expenses.
“With more than half withdrawing from their emergency savings needing at least $1,000, it underscores the advantage of a high-yield savings account where money is liquid and can be accessed at any time without penalty,” McBride says.
Source: Bankrate Emergency Savings Survey, Feb. 11-14, 2025
Note: Percentages are of U.S. adults who’ve needed to use their emergency savings in the past 12 months.
People tend to use their emergency savings for essentials
The majority (80 percent) of people who used their emergency savings in the past year (as of February 2024) used the money for essentials. Specifically, about half (51 percent) of people who used their emergency savings in the past year did so for an unplanned emergency expense, such as a medical bill or car repair; monthly bills, such as rent and utilities (38 percent); and/or day-to-day expenses, such as food or supplies (32 percent).
Many people who withdrew from their emergency savings in the past year also did so in order to help a family member or friend (22 percent) or to pay down debt (21 percent).
Only a small percentage (19 percent) of people who withdrew from their emergency savings in the past year did so for non-essential reasons:
- 9 percent used the funds for a vacation.
- 10 percent used them for discretionary shopping (such as clothes or electronics).
- 7 percent used them for a discretionary experience (such as concerts, sports tickets or throwing a party).
Source: Bankrate Emergency Savings Survey, Feb. 11-14, 2025
Note: Percentages are of U.S. adults who’ve needed to use their emergency savings in the past 12 months; Respondents could select more than one option.
1 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
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,” McBride says.
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
3 tips on building your emergency fund amid a turbulent economy
The U.S. has a 1-in-3 chance of a recession in the next year, according to Bankrate’s Economic Indicator Survey. While you can’t completely recession-proof your finances, building an emergency fund can be a much-needed 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.
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