• 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.

• Consumers who have defined goals, set budgets, and use automated savings features achieved better savings outcomes in Q2.

Santander Bank, N.A. (“Santander Bank”) today announced findings from a new survey revealing that younger generations, especially Gen Z, were able to increase their savings in 2025. The survey found 58% of Gen Zers and 54% of Millennials increased their savings since the start of the year, ahead of their Gen X (47%) and Baby Boomer (39%) counterparts.

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According to the latest Openbank Growing Personal Savings (“GPS”) Tracker from Santander Bank, their success may be the result of a renewed focus on savings. The overwhelming majority of Gen Z (81%) and Millennials (79%) say growing their savings is a top priority, and 69% of Gen Zers and 62% of Millennials made lifestyle trade-offs in the past three months to save more.

“It’s encouraging to see younger consumers embracing the importance of saving,�� said Swati Bhatia, Head of Retail Banking & Transformation for Santander Bank and CEO for Openbank in the United States. “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.”

Savers Miss Out on Higher Yields, But CDs Pique Interest

While building savings remains a priority across generations, the majority are not earning a competitive rate on their savings, as few savers are using accounts that pay higher interest. Instead, most keep their primary savings in lower-yielding options, such as traditional savings accounts (43%) or checking accounts (31%). Gen Z—the generation most committed to saving—has the greatest opportunity to benefit by leveraging higher-yielding accounts. Among Gen Z savers who know their interest rate, less than four in 10 (38%) earn a competitive rate—defined as at least a 3.00% annual percentage yield (APY).

While many have yet to tap into higher-yielding savings accounts, interest is growing in certificates of deposit (CDs) as a practical way to lock in higher rates ahead of potential Federal Reserve rate cuts later this year. With a CD, accountholders agree to keep their funds in the account for a specified period of time, typically in exchange for a higher rate of interest. The survey found that 61% of consumers are interested in opening a CD to secure a higher rate, with consideration highest among younger generations. While just 8% of Gen Z currently own a CD, 74% are interested in opening one before rates come down, more than any other generation. Yet, Gen Z—compared to other generations—lacks familiarity with how CDs work, demonstrating a need for more financial information.

“For decades, the interest rate environment was not favorable to savers. But over the last few years, CDs have become a very attractive way to lock in higher yields,” Bhatia said. “Given interest rates were low for such a long time, it’s not surprising that younger savers are unfamiliar with CDs and other higher-yielding account options. Now is an opportune time for them to consider opening a CD to make the interest rate environment work for them. At Santander, we offer CDs through our existing branch network and will be making them available through our Openbank US platform later this year to help customers grow their savings and reach their goals.”

The Right Banking Partner Can Support Goals and Build Confidence

Most consumers (82%) agree choosing the right financial provider is key to achieving their savings goals. While many are not earning a competitive rate, digital banking options are seen as offering more attractive rates on savings, and more than eight in 10 (82%) would consider using a digital banking option as their primary provider. When selecting one, consumers would prioritize access to core products such as checking/debit accounts, credit cards, savings accounts, high-yield savings, and personal loans. Additionally, 70% say they would feel more confident using a digital banking option if it also had physical locations, even if none were nearby, as bank branches continue to serve as a powerful symbol of stability and trust.

“Consumers are telling us they want the best of both worlds—competitive digital offerings paired with the confidence that comes from the backing of a financially strong bank with a physical presence,” Bhatia said. “As we expand into a full-service digital bank with branches, we’re focused on delivering strong savings and lending solutions, seamless digital experiences, and outstanding customer service that matter to consumers as they strive to reach their financial goals.”

Better Habits Support Better Savings Outcomes

The survey also found that proactive planning leads to better savings outcomes. Consumers with defined savings goals and budgets were significantly more likely to grow their savings in Q2. Among those who met their savings goals, some top strategies included reducing spending (48%), sticking to a strict budget (41%), and using automated transfers from a paycheck or checking account into a savings account (24%).

Using higher-yielding deposit accounts also correlates with stronger savings results. Seven in 10 consumers with accounts such as high-yield savings accounts or CDs increased their savings since the start of the year, compared to just 38% of those without. Similarly, 68% of high-yield accountholders met their savings goals in the first half of the year, more than double the 32% of non-users.

Methodology

This research on growing personal savings, conducted by Morning Consult on behalf of Santander Bank, surveyed 2,276 American adults. This Q2 study was conducted between June 27 – June 29, 2025. The interviews were conducted online, and the margin of error is +/- 2 percentage points for the total audience at a 95% confidence level. This data was weighted to target population proportions for a representative sample based on age, gender, ethnicity, region, and education.

Monthly measures were based on additional monthly survey pulses, conducted by Morning Consult on behalf of Santander Bank, of approximately 2,200 American adults per month. The monthly iterations were conducted April 16 – 18, May 15 – 18, and June 16 – 19, 2025 to measure month-over-month changes. Each monthly survey was conducted online, and the margin of error is +/- 2 percentage points for the total audience at a 95% confidence level.

The full report and more information about the Santander Bank, N.A. survey can be found here.

About Santander Bank, N.A.

Santander Bank, N.A. is one of the country’s leading retail and commercial banks, with $102 billion in assets as of December 31, 2024. With its corporate offices in Boston, the Bank’s more than 4,400 employees and more than 1.8 million customers are principally located in Massachusetts, New Hampshire, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Delaware, and Florida. The Bank is a wholly-owned subsidiary of Madrid-based Banco Santander, S.A. (NYSE: SAN), recognized as one of the world’s most admired companies by Fortune Magazine in 2025, with approximately 176 million customers in the U.S., Europe, and Latin America. Santander Bank is overseen by Santander Holdings USA, Inc., Banco Santander’s intermediate holding company in the U.S. For more information on Santander Bank, please visit www.santanderbank.com.

Openbank in the United States is a division of Santander Bank, N.A., which is a Member of FDIC and a wholly owned subsidiary of Banco Santander, S.A. © 2025 Santander Bank, N.A. All rights reserved. Santander, Santander Bank, Openbank, the Flame Logo are trademarks of Banco Santander, S.A. or its subsidiaries in the United States or other countries. All other trademarks are the property of their respective owners. For more information on Openbank in the United States, please visit http://www.openbank.us.

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