You can have a savings account and receive food stamps, but the amount of money in it matters
The Supplemental Nutrition Assistance Program (SNAP), which is the formal name for food stamps, does allow you to have a savings account. However, most states set a resource limit — a cap on how much money and other assets you can own and still be considered for the program. If your savings exceed that limit, you will not be approved, or your benefits will stop.
The federal resource limit is $2,750 for most households, though some states set their own limits that are higher or lower. A few states have eliminated resource limits entirely. The key is knowing what your state allows and what counts toward that limit.
Key Takeaways
- Most states cap the total resources you can have at $2,750, though some states allow more and a few allow unlimited resources.
- Your savings account balance counts toward the resource limit, but certain accounts — like retirement accounts and education savings plans — usually do not.
- You must report your savings when you apply for SNAP and update it if the amount changes significantly during the year.
- If your savings push you over the limit, you can still work toward SNAP by spending down your account or moving money into protected accounts like retirement plans.
What counts as a resource under SNAP rules
A resource in SNAP terms means money and property you own right now. Your savings account balance counts. So do checking accounts, money market accounts, and cash on hand. If you own a vehicle, that counts too — though most states exclude one vehicle per household. Real estate other than your home is counted.
What does not count: your primary residence, retirement accounts (401k, IRA, pension), education savings accounts (529 plans), life insurance policies, and most household goods. Some states also exclude one vehicle entirely, while others exclude vehicles up to a certain value. The specifics vary by state.
Joint accounts with someone else count toward your resource limit only for your share of the money. If you and a spouse have $3,000 in a joint savings account, that $3,000 counts against both of your limits.
Resource limits by state and household size
The federal baseline is $2,750 for most households, with a higher limit of $4,250 for households where at least one person is age 60 or older or disabled. However, states can set their own limits.
| State Category | Resource Limit | Notes |
|---|---|---|
| Most states (federal standard) | $2,750 general; $4,250 elderly or disabled | Applies unless state has set a different limit |
| States with higher limits | $3,500 to $5,000+ | Varies by state; check your state's SNAP office |
| States with no resource limit | Unlimited | Includes California, Illinois, New York, and others; check your state |
The best way to find your state's exact limit is to contact your state's SNAP office directly or visit its website. Many state offices have a phone number and online portal where you can look up current rules.
How to report your savings when you apply
When you apply for SNAP, you will be asked to list all your resources, including savings accounts. You will need to provide the account balance as of the date you apply. Most programs ask for recent bank statements — typically from the last 30 days — to verify the amount.
If you do not have a recent statement, you can call your bank and ask them to read the balance to you over the phone, or you can log into your online banking and take a screenshot. Some SNAP offices will accept a written statement from you if you cannot get official documentation right away, though they may verify it later.
Be honest about the amount. Lying about your savings can result in denial of benefits, overpayment that you will have to repay, or disqualification from the program for a period of time.
What happens if your savings are over the limit
If your savings exceed your state's resource limit when you apply, you will be denied. If you are already receiving SNAP and your savings go over the limit, your benefits will stop. The program will send you a notice explaining why and giving you a chance to respond if you believe the information is wrong.
You have the right to request a hearing to dispute the decision. However, if the amount in your account truly is over the limit, the hearing will likely not change the outcome unless your state has a rule that allows an exception — for example, some states allow you to keep money set aside for medical expenses or funeral costs.
If you are close to the limit but over it, you can spend down your savings to get below the threshold. Money spent on food, rent, utilities, medical bills, or other living expenses reduces your account balance and brings you into range for SNAP.
Accounts and money that do not count toward the limit
Retirement accounts are protected. If you have a 401(k), traditional IRA, Roth IRA, or pension, that money does not count toward your resource limit, even if you could technically withdraw it. The same applies to 529 education savings plans and Coverdell education savings accounts.
Life insurance policies do not count. Neither do household goods, clothing, or personal items. One vehicle per household is usually excluded, though the rules vary by state — some states exclude vehicles regardless of value, while others exclude only vehicles up to a certain value.
If you receive money as a gift or inheritance, it counts as a resource once it is in your account. However, some states allow a brief period — usually 30 days — for you to spend down inherited money before it is counted. Check with your state office about this rule if it applies to you.
Reporting changes to your savings during the year
You are required to report significant changes in your resources during the year. What counts as "significant" varies by state — some require you to report any change over $100, while others have higher thresholds. Check your state's rules or ask when you apply.
If you receive a large payment — a tax refund, a settlement, a bonus — and it pushes your savings over the limit, report it to your SNAP office right away. Waiting to report it can result in an overpayment that you will have to repay later. If you report it promptly, your benefits will simply stop, and you will not owe money back.
If your savings drop below the limit again — because you spent it down or because of a planned expense — you can reapply for SNAP. There is no penalty for reapplying after being over the limit.
Strategies if you are over the limit but need food assistance
If your savings are above the resource limit and you need food help now, you have a few options. First, check whether your state has eliminated resource limits for SNAP — if so, you may be able to receive benefits regardless of savings. Second, look into other food programs that do not have resource limits, such as the Emergency Food Assistance Program (TEFAP), which is run by food banks and does not check your savings.
Third, if you have time, you can spend down your savings intentionally. Pay off debts, make home or car repairs, buy durable goods, or pay for medical expenses. Once your balance is below the limit, you can apply for SNAP. This is a legal strategy and is not considered fraud.
Fourth, consider moving money into a protected account if you have one available. Contributing to a retirement account or education savings plan removes money from the resource count, though you will not be able to access it easily. This works only if you have earned income to contribute and if your state allows it.
Frequently Asked Questions
Do I have to close my savings account to get food stamps?
No. You can keep your savings account open as long as the balance stays at or below your state's resource limit. Closing the account does not help — the money still counts as a resource whether it is in an account or in cash.
What if I have money in a joint account with someone who is not applying for SNAP?
Your share of the joint account counts toward your resource limit. If you own the account equally with another person, half the balance counts against you. If you own it in a different proportion, that proportion counts. You will need to explain the ownership to your SNAP office.
Does a high school or college savings plan count against me?
A 529 education savings plan or Coverdell account does not count as a resource for SNAP purposes. However, regular savings accounts set aside for education do count. The difference is in the account type, not the purpose.
Can I move money to someone else's account to get below the limit?
Transferring money to another person's account to avoid the resource limit is considered fraud. SNAP offices look for patterns of transfers before application. If you give money away, be prepared to explain it truthfully — a gift to a family member is legal, but a transfer done specifically to hide assets is not.
What if my savings went over the limit after I was approved?
You must report the change to your SNAP office. Your benefits will stop, but you will not have to repay benefits you already received. Once your savings drop back below the limit, you can reapply.