Federal Reserve Survey Reflects Changing Cash Usage

In October 2020 the Federal Reserve’s national Cash Product Office (CPO), with the Federal Reserve Bank of Atlanta and Federal Reserve Bank of Boston, conducted the annual Diary of Consumer Payment Choice survey.

A supplemental survey in April revealed that cash held as a store of value increased on average by more than $200 from October 2019 levels to nearly $485 per consumer in April 2020. Only one third of consumers reported making any in-person payments, compared to 96% in October 2019.

The key October survey findings were: 

• Cash holdings increased, with an average household holding about $530 in cash in August as a store of value, while cash held in their pockets, purses or wallets remained stable at around $70.

• Respondents who made an in-person payment in the 30 days prior to completing the survey increased to 60%, up from 34% in April.

• More than 40% of respondents switched to making payments online or over the phone rather than in-person.

• Most respondents using cash received change despite the coin circulation issue, but only 4% reported depositing coin at a financial institution or kiosk.