Saving more money.

Consumers are saving more money, with young Americans saving the most.
58% of Gen Z and 54% of millennials have increased their savings in 2025.

Six in 10 Gen Zers (58%) have increased their savings since the start of the year, and 69% made sacrifices to save in Q2.

More consumers are considering using CDs to grow savings. This interest is highest among Gen Z, but their limited familiarity with these accounts may prevent utilization.

A majority of consumers (63%) see digital banking options as offering more competitive rates to help them grow their savings.

A new survey from Santander Bank shows that younger Americans are outpacing older generations when it comes to building their savings in 2025, with Gen Z and Millennials leading the charge.

According to the latest Openbank Growing Personal Savings (GPS) Tracker, 58% of Gen Zers and 54% of millennials have increased their savings since the start of the year. By comparison, 47% of Gen X and 39% of baby boomers reported boosting their savings.

The report suggests that younger consumers are particularly focused on their financial futures. A strong majority of Gen Z (81%) and millennials (79%) said that saving money is a top priority for them in 2025. To achieve that goal, 69% of Gen Zers and 62% of millennials have made lifestyle trade-offs in the past three months, cutting back on expenses in order to put more money aside.

“It’s encouraging to see younger consumers embracing the importance of saving,” said Swati Bhatia, head of Retail Banking & Transformation for Santander Bank. “They are showing real determination as they find ways to cut spending and build savings, even in a challenging environment. These savers now have an opportunity to grow their savings further by using high-yield savings accounts and CDs that are currently offering meaningful interest rates.”

Missing out on higher yields
Despite the focus on saving, many Americans aren’t maximizing their returns. The survey found that 43% keep their savings in traditional savings accounts and 31% use checking accounts, both of which typically earn little to no interest. Among Gen Z savers who know their account’s interest rate, only 38% are earning a “competitive” yield, defined as at least 3.00% annual percentage yield (APY).

One bright spot is that certificates of deposit (CDs) are gaining traction, particularly among younger savers. While just 8% of Gen Z currently own a CD, nearly three-quarters (74%) expressed interest in opening one before potential Federal Reserve rate cuts later this year.

The survey also highlights the importance of choosing the right banking partner. Eighty-two percent of consumers said that working with the right financial provider is crucial to meeting their savings goals. Many view digital banks as offering more attractive rates, and over 80% said they would consider a digital bank as their primary provider.

More Information at:
https://www.consumeraffairs.com/news/consumers-are-saving-more-money-with-young-americans-saving-the-most-091125.html