Will falling balances of savings accounts in swing states help to determine the presidential election? New research has found that personal savings accounts have decreased in four of nine swing states and grew slower than the rate of inflation in three other swing states as the election approaches.
This occurred while, on average, nationwide balances of savings accounts increased 3 percent across the nation, while the balances of noninterest checking accounts rose by more than 5 percent since 2010. Growth of savings accounts in Louisiana, New York, South Dakota and Alaska all outpaced the national average for growth, increasing by more than 10 percentage points in each of those states. On the other hand, six states saw decreases in the value of saving accounts. Residents of Florida, New Mexico and Delaware saw the biggest percentage decreases in their savings accounts.
Residents of the Garden State led the nation both in the amount in their savings accounts, with an average of more than $7,800, and the amount in their noninterest checking accounts with more than $4,400. New York, Connecticut, Massachusetts and Hawaii rounded out the top five states with the highest savings account balances.
New Mexico was on the opposite end of the spectrum, having the lowest average savings and noninterest checking account balances. Residents of New Mexico had an average of $4,119 in their savings accounts and $2,206 in their non-interest checking accounts. South Carolina, Georgia, Nevada and Arizona all ranked slightly higher than New Mexico, but still made up the rest of the bottom five.
"In politics and business alike, it is important to identify the underlying trends below the macroeconomic picture," said John O’Hara, president of Pitney Bowes Software, which conducted the research. "Using location intelligence to analyze data enables government and businesses to understand their constituents or customers in the fullest context."
The research was based on geo-coded account data for more than 100 million accounts from commercial banks, which was analyzed in with more than 200 demographic elements and variables.