Does Your State Make it Easier to Save Money?
The state you live in can influence how well you're able to save money. See which states make saving easier.

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.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
States where it's easiest to save money
Here are the 10 states where residents have an easier time to save money:
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:
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
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.
Related content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

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.
-
Ten Cheapest Places to Live in Texas
Property Tax Looking for a cheap place to live in Texas? Look no further. These counties have the lowest property tax bills in the Lone Star State.
-
AI Is Missing the Wisdom of Older Adults: What It Means for You
AI will increasingly affect your healthcare and finances, but young workers are primarily designing the systems and getting most of the jobs.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build Wealth
Consistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
Baby Boomers vs Gen X: Who Spends More?
Baby Boomers and Gen X are guilty of spending a lot of money. Here's a look at where their money goes.
-
A Financial Expert's Tips for Lending Money to Family and Friends
What starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
The 401(k) Mistake That Could Cost You Millions in Retirement Savings
Thinking about reducing your 401(K) contributions in the current market? Here are six reasons why you may want to reconsider.
-
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid Off
Life insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.
-
7 Rules Frequent Flyers Swear By
From dodging long lines to avoiding bad coffee, these clever travel rules can help you save time, stay healthy and reduce stress every time you fly.
-
My Professional Advice: When It Comes to Money, You Do You
This is how embracing the 'letting others be' and 'learning to surrender' mindsets can improve your relationship with money.
-
Five Smart Moves for Retirement Healthcare: From HSAs to Medigap Policies
Unchecked health care costs in retirement could blow a hole in your savings. Here’s how to avoid that.