Does Your State Make it Easier to Save Cash?

published 30 April 2025

There are three rules in real estate: Location, location, location. But where you live can make a huge difference in your ability to save money.

This is why Bankrate conducted a study to find the states where it's easiest to save money, and states where it's hard to store away cash.

For criteria, they used seven metrics broken down into three categories: economic conditions of the state (50 percent), interest rate for certificate of deposits and high-yield savings accounts (25 percent) and 25 percent for taxes.

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States where it's easiest to save money

Here are the 10 states where residents have an easier time to save money:

Swipe to scroll horizontally

States favorable to savers
State and overall rank	CD and MMA Interest Rates	Taxes	Local Economy
1. Tennessee	14	3	10
2. Missouri	6	13	8
3. Texas	28	5	2
4. Oklahoma	13	10	12
5. Florida	5	11	21
6. Kentucky	16	16	5
7. South Dakota	41	4	1
8. Louisiana	2	11	37
9. Indiana	24	13	9
10. Michigan	15	5	28

What are the commonalities among these states? They have lower tax bases, as Florida, Tennessee, South Dakota and Texas don't have state income taxes. Many of these states also have lower-cost-of-living areas.

While these states may offer tax advantages and a lower cost of living, you don't have to live in one to take advantage of high-yield savings accounts.

Using this tool from Bankrate can help you find the best savings rates from online and traditional banks:

States where it's hardest to save money

On the other side of the coin, here are the 10 states making it harder for residents to save money:

Swipe to scroll horizontally

States not favorable to savers
State and overall rank	CD and MMA Interest Rates	Taxes	Local Economy
50. Hawaii	50	48	50
49. Connecticut	37	49	43
48. Vermont	48	47	22
47. California	3	46	49
46. New Jersey	29	45	44
45. Delaware	45	41	39
44. Maryland	7	35	48
43. Massachusetts	20	37	47
42. Washington	44	29	40
41. New York	21	50	11
40. Oregon	42	31	32

These states have higher costs of living. In addition, many have higher taxes which drives up costs even more, making it tricker to save money.

If you live in one of these areas or are looking for ways to maximize savings, budgeting apps come in handy. Many are easy-to-use, some are free and they can pool all of your financial accounts into one hub, making it easier to track spending.

One of our favorites is Empower. I tried it out and liked it so much that it's my primary budgeting app now. It's free, allows you to organize personal and investing accounts into one spot, and you can receive fee-based advising services.

Other tips to save money

Woman managing home budget with the aid of financial app at home.

In addition to budgeting apps, look for savings options that outpace inflation. Traditional brick-and-mortar banks offer a friendly face and personal service, but their savings rates won't keep pace with inflation.

If you don't want to go with a high-yield savings account with an online bank, look at other options, like a certificate of deposit or a money market account.

Money market accounts are great in that you can earn a healthy rate of return, with access to your cash when you need it. Many banks and credit unions offering them give you debit card and check writing abilities, combining the best elements of a checking account with savings.

Another option is a CD. With a CD, you set money aside for a specified period of time and earn a guaranteed rate of return. Many CDs offer rates of return higher than 4%, helping you earn more money effortlessly.

Compare the best rates from Bankrate here:

With CDs, you'll want to keep your money in until the maturity date. If you try to withdraw it beforehand, the bank closes the CD and charges you a fee, negating the interest earned.

Therefore, it's only a wise solution if you feel comfortable setting money aside and forgetting about it.

The bottom line

Where you live plays a role in how much money you're able to save. The Bankrate study is helpful in that if you're planning to move soon, you could choose an area more favorable to savers.

Alternatively, you can use budgeting apps with savings vehicles with higher rates of return to ensure you maximize savings, regardless of what your zip code is.

Sean is a veteran personal finance writer, with over 10 years of experience. He's written finance guides on insurance, savings, travel and more for CNET, Bankrate and GOBankingRates.