A recent analysis by JPMorganChase Institute found that more Americans are shifting their money from checking and savings accounts into financial vehicles that pay an investment income, the Associated Press reports. The trend helps explain the resilience of the U.S. economy despite inflation and tariff uncertainty.
The latest analysis examined the accounts of 4.7 million households and found that people’s total cash reserves are increasing when including new amounts going into brokerage accounts, money market funds and certificates of deposit to assess people’s well being.
The analysis said that inflation-adjusted cash balances in checking and savings accounts “remain low with a flat-growth trajectory,” but since the middle of 2024, total cash reserves have been increasing and nearing historical growth trends once the additional accounts are included.
Households with incomes generally lower than $35,000 had their total cash balances increase at an annual rate of 5% to 6%, the analysis said. The lowest income quartile tends to have checking and savings account balances of just over $1,000, while the median balances of the highest income quartile are above $8,000.
