This is the No. 1 reason Americans are withdrawing from their savings

Among record-high credit card debt and reports of many consumers living paycheck to paycheck, Americans are relying on their savings to cover monthly bills and common everyday expenses, including groceries.

A recent CNBC Select and Dynata Banking Behaviors Survey found that 40% of respondents who reported having withdrawn cash from their savings say they did so to cover fixed bills, such as a car payment. The second most cited reason, at 38%, was to cover variable expenses like groceries.

While the broader economy has been looking better in recent months — with cooling inflation, a still strong job market and the stock market near all-time highs — consumers are still strained. Many households haven't made it through the inflation fight unscathed, explains Kathryn Anne Edwards, an economist and economic policy consultant.

"Economic indicators say we're doing better [than a year ago], but households don't think of prices in 12-month growth rates," Edwards says. With years of accumulated price increases, it's no surprise that Americans are dipping into their savings to cover everyday expenses.

22% of Americans tapped into their piggy banks for a large purchase like a house, according to the survey, and the same number reported that they had to use their savings to cover emergencies, like a hospital visit.

While it's smart to avoid debt to cover necessities, especially with record inflation in recent years, making a habit of using savings can run it dry fast.

"If you're dipping into savings to make ends meet, you're ahead of those who are borrowing from creditors or their own retirement funds to get by," says Sarah Newcomb, of THRIVE Financial Empowerment Center and a former behavioral economist for Morningstar. "Still, inflation is a long-term reality, and you should focus on finding ways to cut costs, earn more and possibly restructure debt so that you can get back on track and replenish those emergency funds."

1. Use a checking account for recurring expenses

It's best to keep money for regular expenses like car payments and groceries in a checking account, which allows for unlimited access to your cash. Savings accounts can impose monthly withdrawal limits.

Certain online checking accounts offer a solid return on the money sitting in your account, too, with APYs that are competitive to what high-yield savings accounts offer.

These are some of the top interest-bearing checking accounts on the market right now, which also have welcome offers where you'll earn up to $400 after opening an account and meeting certain requirements:

2. Create a 'budget buffer'

When thinking about budgeting, make sure your checking account has enough in it to cover your monthly needs, plus a small "budget buffer," as Newcomb calls it.

"We typically don't build enough slack into our budgets to cover the ordinary-but-irregular expenses that always come up," Newcomb says, like annual car registration, haircuts or occasional gifts.

You can start by looking at your actual spending from the last three months to get an idea of how much slack you should build into your budget to make ends meet. "In my own household, I've learned to add about 10%," Newcomb says.

The idea is that this budget buffer in your checking account will help with expenses that pop up so you don't need to turn to your savings.

The national average APY on a regular savings account is just 0.46%, while many high-yield savings accounts have interest rates over 5%. Yet, 57% of Americans are using a traditional or regular savings account, according to the CNBC Select Banking Behaviors Survey.

That could mean missing out on hundreds of dollars in interest each year. So, make sure your savings is earning as much as possible with a high-yield savings account. Here are some of the best on the market today:

The CNBC Select Banking Behaviors Survey of 1,151 Americans across the country was conducted online from Sept. 8, 2023 to Sept. 19, 2023 by Dynata. Survey respondents were nationally representative by gender, age, race and ethnicity using 2020 Census data. Women represented 50% while men represented 49% of respondents and spanned a wide variety of incomes. All those surveyed were 18 or older. The margin of error for the survey was +/-3%.

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* New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking/checking-offer/ *SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn up to 3.10% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.10% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. *SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC's regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks. *Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at sofi.com/banking#4. SoFi Bank, N.A. Member FDIC. *Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet