How Formal Savings Work: Explaining the Metrics
Saving money is a universal financial behaviour, but where people save varies dramatically across economies. The World Bank’s Global Findex survey asks adults whether they saved or set aside money at a bank or other financial institution in the past year — a metric known as formal savings. The answers reveal a world split between economies where nearly every adult uses a formal savings account and those where saving institutionally is a rarity.
Across 142 economies with available data, the share of adults who save formally ranges from 80.9% in Norway (2021) down to 1.3% in Afghanistan (2021). This article explains what the metric captures, how it compares to other forms of saving, and what the global patterns look like.
For the data-driven ranking of formal savings rates, see the companion post on where formal savings are highest.
What “Formal Savings” Actually Measures
The Global Findex definition of formal savings is straightforward: an adult is counted as a formal saver if they report saving or setting aside money using an account at a bank, credit union, microfinance institution, or another type of regulated financial institution in the past 12 months.
This is distinct from:
- Informal savings — saving with a savings club, a rotating savings group, or by entrusting money to a family member or friend outside the household.
- Mobile money savings — saving on a mobile money account, which the Global Findex tracks as a separate category. For the overlap between formal and mobile money saving, see how mobile money bridges financial inclusion.
- Combined savings — saving via either a financial institution or a mobile money account, which the Global Findex also reports. The ranking of combined formal and mobile money savings is covered in the formal mobile money savings report.
What matters for inclusion policy is not just whether people save, but where they save, because formal savings offer deposit insurance, regulatory oversight, and a pathway to credit that informal mechanisms typically do not.
Where Formal Savings Are Highest
The top of the formal savings ranking is dominated by high-income economies with universal or near-universal access to banking. All figures below are observed values from the Global Findex survey.
| Global Rank | Economy | Adults who saved formally | Year |
|---|---|---|---|
| 1 of 142 | Norway | 80.9% | 2021 |
| 2 of 142 | Sweden | 79.7% | 2021 |
| 3 of 142 | Iceland | 75.8% | 2021 |
| 4 of 142 | New Zealand | 69.3% | 2021 |
| 5 of 142 | Australia | 69.2% | 2021 |
| 6 of 142 | Denmark | 67.3% | 2021 |
| 7 of 142 | Austria | 66.7% | 2021 |
| 8 of 142 | China | 66.5% | 2024 |
| 9 of 142 | Netherlands | 65.7% | 2021 |
| 10 of 142 | United States | 64.9% | 2021 |
The Nordic countries — Norway, Sweden, Iceland, and Denmark — occupy four of the top six positions. This is consistent with their high rates of bank account penetration and well-developed social safety nets that encourage formal financial participation. For context on account ownership in these economies, see where banking reaches everyone.
A notable outlier in the top ten is China at 66.5% with a 2024 reading — the most recent data point among the leaders. This places it above most Western European economies and reflects China’s exceptionally high household savings rate and deep banking penetration.
For the broader picture on how the world saves, including informal and mobile money channels, see how the world saves.
Where Formal Savings Are Lowest
At the opposite end of the spectrum, formal savings are virtually non-existent in some of the world’s most fragile economies.
| Global Rank | Economy | Adults who saved formally | Year |
|---|---|---|---|
| 133 of 142 | Morocco | 5.6% | 2024 |
| 134 of 142 | Malawi | 5.4% | 2024 |
| 135 of 142 | Republic of the Congo | 5.2% | 2024 |
| 136 of 142 | Madagascar | 4.8% | 2024 |
| 137 of 142 | Niger | 3.5% | 2024 |
| 138 of 142 | Zimbabwe | 3.3% | 2024 |
| 139 of 142 | Lebanon | 3.2% | 2024 |
| 140 of 142 | Yemen | 3.1% | 2022 |
| 141 of 142 | South Sudan | 1.5% | 2021 |
| 142 of 142 | Afghanistan | 1.3% | 2021 |
In many of these economies, a lack of bank branch infrastructure is the primary barrier. For more on how branch density relates to account ownership, see where banking still means walking in. Conflict-affected economies like Afghanistan, Yemen, and South Sudan face additional challenges: even where banking infrastructure exists, trust in formal institutions is often severely eroded.
Lebanon’s position at 3.2% is particularly noteworthy — it was a middle-income economy with a well-developed banking sector before its 2019 financial crisis. The 2024 reading reflects a collapse in trust following the banking crisis, demonstrating how formal savings rates can deteriorate rapidly when the financial system itself becomes the source of risk.
The Middle: Where Formal Savings Are Growing
Between the extremes lies a substantial middle band of economies where formal savings rates are modest but trending upward. Many of these are upper-middle-income economies where banking is increasingly accessible but not yet universal.
| Global Rank | Economy | Adults who saved formally | Year |
|---|---|---|---|
| 66 of 142 | India | 23.8% | 2024 |
| 71 of 142 | Indonesia | 22.6% | 2024 |
| 78 of 142 | Kenya | 20.1% | 2024 |
| 84 of 142 | Mexico | 17.2% | 2024 |
India, at 23.8% in 2024, occupies an interesting position. Despite the government’s massive Jan Dhan Yojana account-opening drive, formal savings rates remain relatively modest because many accounts are used primarily for receiving government transfers rather than for active saving. For more on the gap between account ownership and active use, see why account ownership does not guarantee card access.
Kenya, at 20.1%, is an instructive case: its formal savings rate is modest by global standards, yet it has one of the highest mobile money savings rates in the world through M-Pesa. The combined formal-and-mobile-money savings rate tells a different story — see the formal mobile money savings ranking for that comparison.
Why Formal Savings Matter
The distinction between formal and informal savings is not academic. Formal savings provide:
- Deposit insurance — government-backed protection for savings up to a threshold, reducing the risk of loss.
- Regulatory oversight — financial institutions must follow capital adequacy and liquidity rules that protect depositors. For more on this, see what bank capital adequacy ratios mean.
- Credit history — a formal savings account creates a record that helps adults qualify for loans.
- Interest income — formal accounts typically pay interest, whereas informal savings mechanisms often do not. For where depositors earn the most, see the global deposit interest rates ranking.
At the same time, formal savings can exclude the poor through minimum balance requirements and account fees. Many economies where formal savings rates are below 10% also have high account dormancy rates, because maintaining an account costs more than the saver can afford.
Sources & method
All figures are observed values from the World Bank Global Findex survey, which asks a representative sample of adults in each economy whether they saved at a financial institution in the past year. The data covers 142 economies, with the most recent wave collected in 2021–2024 depending on the country. Values shown here are the most recent available reading for each economy. Full methodology, including survey design and sampling, is on the methodology page.
For the full ranking with all 142 economies, see the companion blog post on where formal savings are highest.