Despite a steady job market, a wide swath of middle-class Americans are apparently reluctant to spend freely due to economic uncertainty and are hoarding money in banks, USA Today reports.
Americans hold about $2 trillion in checking accounts now, says Mike Moebs, CEO of economic research firm Moebs Services. The average U.S. checking account deposit is about $3,600, climbing from $1,000 in 2007, he says.
Total bank deposits rose 6.6% last year to $10.7 trillion, extending steady growth seen in recent years, data from the Federal Deposit Insurance Corporation show.
Deposits measured as a percentage of bank assets are 77.6% in the first quarter of 2017—the highest since 2006—according to data from Moebs Services, which provides research and consultancy services to financial institutions.
Much of deposit growth has to do with the resilient U.S. economy that continues to expand from the depths of the financial crisis.
