20 Best & Worst U.S. Cities for Saving Money

Higher yields, lower taxes, higher-paying jobs, less expensive homes help savers

Prudent American households today are expected to save money, maintaining an emergency fund and siphoning away income for retirement.

The reality is quite different. According to the GoBankingRates database, the current average savings account's annual percentage yield is just 0.11%.

As of January, the national unemployment rate was 6.6%, and the median price of existing U.S. homes, according to ecreditdaily.com, had risen by 10.7% to $188,900.

Savers don’t get much help today, but a new survey by GoBakingRates found that some cities may provide a better opportunity to grow their savings than others, thanks to higher yields, lower taxes, more jobs with higher incomes and less expensive homes.

It scored the 100 largest U.S. cities by population in the following areas: average savings account rate, sales tax, unemployment rate, median household income and median home price. Each criterion was weighted equally, and scores in each category were combined to calculate final rankings.

Informa Research Services compiled savings account interest rates from the GoBankingRates interest rate database.

“Even the most frugal family will struggle to grow a savings fund if they can't get a decent job, earn a sufficient income or afford to pay taxes,” Casey Bond of GoBankingRates, said in a statement.

“These rankings show that if Americans want to stop living paycheck to paycheck and start saving money, they might have to move to a city with greater opportunity.”

Following are the 10 best cities for saving money this year, followed by the 10 worst:

Downtown Ft. Worth, Texas.

10. Fort Worth, Texas

Average Savings Account Rate: 0.07% APY

Sales Tax: 8.25%

Unemployment Rate: 5.5%

Median Household Income: $56,691

Median Home Value: $130,100

Granite Park in Plano, Texas. (Photo: Wikimedia Commons)

9. Plano, Texas

Average Savings Account Rate: 0.10% APY

Sales Tax: 8.25%

Unemployment Rate: 5.5%

Median Household Income: $80,184

Median Home Value: $222,600

Cowboy's Stadium in Arlington, Texas.

7. Arlington, Texas (tie)

Average Savings Account Rate: 0.07% APY

Sales Tax: 8%

Unemployment Rate: 5.3%

Median Household Income: $56,691

Median Home Value: $130,100

Historic Downtown Garland square. (Photo: Wikimedia Commons)

7. Garland, Texas (tie)

Average Savings Account Rate: 0.09% APY

Sales Tax: 8.25%

Unemployment Rate: 5.5%

Median Household Income: $50,198

Median Home Value: $113,900

Lubbock, Texas Skyline. (Photo: Wikimedia Commons)

6. Lubbock, Texas

Average Savings Account Rate: 0.11% APY

Sales Tax: 8.25%

Unemployment Rate: 4.3%

Median Household Income: $45,171

Median Home Value: $90,100

Anchorage, Alaska Skyline (Photo: AP)

5. Anchorage, Alaska

Average Savings Account Rate: 0.08% APY

Sales Tax: None

Unemployment Rate: 5.2%

Median Household Income: $72,555

Median Home Value: $200,600

Houston, Texas Skyline.

4. Houston, Texas

Average Savings Account Rate: 0.12% APY

Sales Tax: 8.25%

Unemployment Rate: 5.5%

Median Household Income: $58,567

Median Home Value: $163,800

Waikiki Beach in Honolulu, Hawaii.

3. Honolulu, Hawaii

Average Savings Account Rate: 0.12% APY

Sales Tax: 4.5%

Unemployment Rate: 3.8%

Median Household Income: $66,639

Median Home Value: $627,900

Friendship Fountain in Jacksonville, Fla.

2. Jacksonville, Fla.

Average Savings Account Rate: 0.09% APY

Sales Tax: 7%

Unemployment Rate: 5.6%

Median Household Income: $53,082

Median Home Value: $127,100

Downtown Atlanta skyline.

1. Atlanta, Ga.

Average Savings Account Rate: 0.14% APY

Sales Tax: 8%

Unemployment Rate: 6.8%

Median Household Income: $56,024

Median Home Value: $101,300

 

Mesa Arizona Temple.

The 10 worst cities for saving money:

91. Norfolk, Va.

92. Philadelphia

93. Reno, Nev.

94. Sacramento, Calif.

95. Aurora, Co.

96. North Las Vegas, Nev.

97. Stockton, Calif.

98. Long Beach, Calif.

99. Riverside, Calif.

100. Mesa, Ariz.

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