Median household savings have risen across all income brackets compared with 2019, with especially large gains for households earning under $100,000. Adjusted for inflation, average monthly deposits rose about 58% for those earning less than $50,000, about 52% for those earning $51,000–$100,000, and 37% for those earning more than $100,000. Tariffs and economic uncertainty likely encouraged households to hold more cash. Strong labor market conditions and wage growth supported consumer spending, reducing the need to draw down savings. Retail spending growth accelerated, possibly from retailers passing tariff costs to customers and consumers buying ahead of trade deadlines.
Adjusted for inflation, the average monthly deposit for those earning less than $50,000 increased by about 58% between 2019 and 2025, around 52% for those earning between $51,000 and $100,000, and 37% for those earning more than $100,000. One potential reason for people depositing more money, Tinsley said, is the impact of tariffs and economic uncertainty. "People want a little bit more money in the bank," he said.
The Bank of America Institute report also said tariffs may have contributed to the rise in retail spending in July. Total debit and credit card spending jumped 1.8% year-on-year, the highest rate of growth since January. "It is possible some of the increase in spending was due to retailers passing through current or prospective tariff increases onto customers," Tinsley and his coauthors said. They added that the August 1 deadline for trade deals may have led consumers to "buy ahead"
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