The 10 Best Cities for Saving Money in 2014

Posted in Saving Money , Savings Account • February 24, 2014

saving money

Not surprisingly, most finance experts say saving money should be a top priority. A $10,000 emergency fund, 15 percent of income siphoned away for retirement — you’re expected to set aside a considerable chuck of income for the future, but what if you don’t have it now?

Currently, the average savings account rate according to the GOBankingRates database is a mere 0.11% APY. As of January, the national unemployment rate was 6.6 percent, and according to ecreditdaily.com, the median price of existing U.S. homes has risen by 10.7 percent to $188,900 as of January.

Savers don’t have a lot of help today, but they might find the city where they live provides better opportunity than others.

We examined the top 100 largest U.S. cities by population to find out where Americans have the best chance at growing their savings, thanks to higher yields, lower taxes, more jobs with higher incomes and less expensive homes. Below are the 10 cities that ranked the highest for saving money this year:

1. Atlanta, Georgia

Average Savings Account Rate: 0.14% APY
Sales Tax: 8%
Unemployment Rate: 6.8%
Median Household Income: $56,024
Median Home Value: $101,300

2. Jacksonville, Florida

Average Savings Account Rate: 0.09% APY
Sales Tax: 7%
Unemployment Rate: 5.6%
Median Household Income: $53,082
Median Home Value: $127,100

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

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

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

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

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

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

8. 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

9. 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

10. Orlando, Florida

Average Savings Account Rate: 0.10% APY
Sales Tax: 6.5%
Unemployment Rate: 5.5%
Median Household Income: $47,965
Median Home Value: $133,700

See All 100 City Rankings

Click thumbnail to view full chart
saving money

Survey Methodology

Cities are ranked according to the GOBankingRates Indicator, which scored the 100 largest U.S. cities by population in each of the following: 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.

Savings account interest rates were compiled from the GOBankingRates interest rate database, which in partnership with Informa Research Services, Inc., aggregates bank account and interest rate information from more than 6,000 financial institutions.

Additional Sources

Unemployment rate – Bureau of Labor Statistics
Sales tax – City municipal websites
Median household income – Forbes.com and City-Data.com
Median home price – City-Data.com and Zillow.com

NOTE: Official rankings are adjusted to accommodate ties — some numbers might be skipped in order to reflect a range of 1 – 100.

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