We all want to get the best from our savings, but many may not realize the differences on show when looking at the best and worst states to save money in. To find this information out, we have to look at some specific data:
- Total deposits per capita
- Credit card debt by state
- Highest marginal income by state
- Coupons printed by state
This information has been collated and examined to show the best and worst states to save money, as well as some interesting facts. For example, the lack of credit card debt helped to boost some states’ rankings. Six of the top ten states had an average household debt which was lower than the national average of $5,116. In total, the best area for saving is the Heartland, whereas it is mostly areas on the west coast which are lower down in the rankings – six of the ten states in the bottom ten are in the west.
The Top 10
When looking at the best and worst states to save money, these are the ones that came out on top:
1. South Dakota
The high level of earnings from oil means that there is a skewed result in South Dakota, as there is a minority of people adding to the deposits per capita. However, the lack of income tax also means that there is more money to save in the bank accounts. This firmly puts South Dakota at the top of the list of best states to save money.
2. North Dakota
Once again, fossil fuels play a part here. The small population of the Great Plains state have benefitted greatly from the area’s natural resources.
3. North Carolina
A high level of deposits per capita and a low average credit card debt is boosted by the use of coupons in North Carolina. They rank as sixth in the country in the data that Coupons.com provided.
Although the generalization is that everybody in Nevada is busy gambling, this list proves otherwise. Nevada is ranked seventh for deposits per capita and is boosted by the lack of income tax.
Illinois may have the highest average household credit card debt in the top ten, but its reduction of income tax to just 3.75 per cent in 2015 means that it happily sits in fifth place.
Another state that boasts zero per cent income tax, Texas is also boosted by its exports industry.
One of the fastest-growing states in America, Utah is gaining its dollars from the high-tech companies that are relocating there. It is currently ranked third in the list of deposits per capita.
Pennsylvania scored well in every area of the data observed, particularly in its use of coupons.
The Show Me State showed its power in this field by scoring in the 70th percentile of all categories. However, its income tax rate of six per cent stopped it from being any higher in the list.
A low amount of deposits per capita prevented Oklahoma from holding a higher position on the top ten list of the best and worst states to save money. However, it should be commended on having the lowest credit card debt of all top ten states, at an average of just $4,126 credit card debt per household.
The Bottom Ten
Now it’s time to take a look at the worst offenders out of all of the best and worst states to save money.
Ranking 46th out of all the states in deposits per capita, and having an insanely high 9.9 per cent rate of income tax, there’s little wonder than Oregon is the top of the bottom.
Hawaii has the third highest credit card debt in the country as well as the second highest income tax rate.
This state has an average credit card debt of $7,609 per household – the highest in the whole of the USA!
Idaho has the unfortunate title of the state with the lowest amounts of deposits per capita at just $12.57. (This data is written per thousand and provided by the Federal Deposit Insurance Corporation (FDIC).)
This state has the second smallest population in America, but its population of less than 650,000 is hit by an 8.95 per cent income tax rate.
Although Maryland scored the highest in coupon-cutting, this wasn’t enough to save it from the bottom ten. Maryland has the fourth highest average credit card debt in the country.
A combination of high income tax (the highest in the country at 13.3 per cent) and high credit card debt leaves a tarnish on the Golden State.
8. New Mexico (tied with South Carolina)
The low deposits per capita dragged New Mexico into this position on the worst places to save money.
9. South Carolina (tied with New Mexico)
Similar to New Mexico, South Carolina suffers from low deposits per capita and high income tax.
10. New Jersey
New Jersey has an average credit card debt per household of $7,112. Add to this a high income tax rate of 8.97 per cent and the Garden State has just snuck into the bottom ten in the list of the best and worst states to save money.