Bankrate's 2025 Annual Emergency Savings Report

Emergency savings are meant to be used in case of sudden large expenses, like a medical emergency or a car repair. Ideally, no one should have to use them for everyday expenses. But new Bankrate data shows that a significant percentage of Americans have tapped into their emergency savings in the past year for everyday expenses and monthly bills, as well as emergencies.

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 ( YUGVF ). 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 February 2025, examines the percentage of people who pulled money from their emergency savings, how much they pulled and what they pulled the funds for.

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 that may be challenging if they keep needing to pull from their emergency savings for everyday expenses.

Bankrate's insights on emergency funds and personal savings

• More than 1 in 3 Americans needed to tap their emergency savings in the past year

  37% of U.S. adults needed to use their emergency savings at some point in the last 12 months. 80% of those people used the money for essentials, such as an unplanned emergency expense, monthly bills and/or day-to-day expenses.

• People needing to use emergency savings often pull between $1,000 and $2,499

  26% of people who used their emergency savings at some point in the last 12 months pulled between $1,000 and $2,499. 22% pulled between $500 and $999, 18% pulled less than $500, 15% pulled $5,000 or more and 14% pulled between $2,500 and $4,999.

• Fewer Americans have more credit card debt than emergency 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.

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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. 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 (ages 18-28): 34 percent
• Millennials (ages 29-44): 42 percent
• Gen Xers (ages 45-60): 38 percent
• Baby boomers (ages 61-79): 33 percent

Similarly, parents and guardians of children under the age of 18 were more likely to have tapped their emergency savings in the past 12 months, at 45 percent, compared to 34 percent of people who aren't parents or guardians.

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 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).

Bankrate Chief Financial Analyst Greg McBride, CFA, 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 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.

Gen Zers and millennials who withdrew money from their emergency savings in the past 12 months were at least twice as likely as older generations to use their savings for non-essentials, such as vacations or discretionary shopping/experiences. Twenty-seven percent of Gen Zers and 27 percent of millennials who pulled money from their emergency savings in the past year used the funds for vacations or discretionary shopping/experiences, compared to 13 percent of Gen Xers and 9 percent of baby boomers.

• Emergency savings usage, by parenthood and homeownership status

  Parents or guardians of children under the age of 18 were more likely than others to tap into their emergency funds for non-essential items. Among those who made a withdrawal in the past 12 months, nearly 1 in 3 (30 percent) did so for non-essentials. In comparison, just 17 percent of non-parents/guardians who withdrew money from their emergency funds did so for non-essentials.

  Also, among people who withdrew money from their emergency savings in the past 12 months, both homeowners and renters were equally likely to have withdrawn funds for unplanned emergency expenses (52 percent each). But renters were more likely to withdraw money for monthly bills (43 percent) and day-to-day expenses (37 percent), compared to homeowners (34 percent and 26 percent, respectively).

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

• Credit card debt versus emergency savings, by generation

  Generation-wise, millennials in 2025 are most likely to have more credit card debt than emergency savings, followed by Gen Xers:

  • Gen Zers: 27 percent
  • Millennials: 42 percent
  • Gen Xers: 39 percent
  • Baby boomers: 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," McBride says.

Learn more: Should you pay off debts first or save? Expert tips to help you choose

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

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.

Learn more: How to start (and build) an emergency fund

• Payment methods for emergency expenses, by generation

  Generally, the older someone is, the more likely they are to use their savings, not credit, in case of an emergency. Baby boomers are the likeliest generation (59 percent) to pay for an unexpected $1,000 emergency expense from their savings, followed by Gen Xers:

  • Baby boomers: 59 percent
  • Gen Xers: 42 percent
  • Millennials: 32 percent
  • Gen Zers: 28 percent

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

• By year and generation:

  We asked: If you were to lose a primary source of household income tomorrow (for example, a job loss), how worried are you that you would not have enough emergency savings to cover your immediate living expenses over the next month?

  Year	Very/somewhat worried	Not too/not at all worried
  2025	69%	31%
  2024	66%	34%
  2023	68%	32%

  Source: Bankrate Emergency Savings Surveys

  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

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."

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.

As of June 2024, over half of Americans are uncomfortable with their level of emergency savings

Keeping at least three months of expenses saved can help you weather a job loss, major unexpected bill or other sudden expense. 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.

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.

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.

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

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.

• Comfort with emergency savings, by income level

  Higher-income households tend to be more comfortable with their emergency savings than lower-income households. More than half (56 percent) of households with an income of $100,000 per year or higher say they're comfortable:

  • $100,000 per year or more: 56 percent
  • $75,000-$99,999: 48 percent
  • $50,000-$74,999: 45 percent
  • Less than $50,000 per year: 30 percent

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.

• Methodology

  The study (that was conducted February 2025) was conducted by YouGov Plc ( YUGVF ). All figures, unless otherwise stated, are from YouGov Plc ( YUGVF ). Total sample size was 3,480 adults, of whom 1,302 have withdrawn emergency savings in the past year. Fieldwork was undertaken between 11th - 14th February 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.

  The study (that was conducted January 2025) was conducted by SSRS on its Opinion Panel Omnibus platform. The SSRS Opinion Panel Omnibus is a national, twice-per-month, probability-based survey. Data collection was conducted from January 3 - January 5, 2025 among a sample of 1,077 respondents. The survey was conducted via web (n=1,047) and telephone (n=30) and administered in English (n=1,048) and Spanish (n=29). The margin of error for total respondents is +/-3.8 percentage points at the 95% confidence level. All SSRS Opinion Panel Omnibus data are weighted to represent the target population of U.S. adults ages 18 or older.

  The study (that was conducted December 2024) was conducted by SSRS on its Opinion Panel Omnibus platform. The SSRS Opinion Panel Omnibus is a national, twice-per-month, probability-based survey. Data collection was conducted from December 6 - December 9, 2024, among a sample of 1,039 respondents. The survey was conducted via web (n=1,009) and telephone (n=30) and administered in English (n=1,013) and Spanish (n=26). The margin of error for total respondents is +/-3.9 percentage points at the 95% confidence level. All SSRS Opinion Panel Omnibus data are weighted to represent the target population of U.S. adults ages 18 or older.

  The study (that was conducted May 2024) was conducted by SSRS on its Opinion Panel Omnibus platform. The SSRS Opinion Panel Omnibus is a national, twice-per-month, probability-based survey. Data collection was conducted from May 17 - May 20, 2024 among a sample of 1,032 respondents. The survey was conducted via web (n=1,000) and telephone (n=32) and administered in English (n=1006) and Spanish (n=26). The margin of error for total respondents is +/- 3.5 percentage points at the 95% confidence level. All SSRS Opinion Panel Omnibus data are weighted to represent the target population of U.S. adults ages 18 or older.