Most Americans Missing Out on Earning Higher Interest on Savings, Santander Bank Survey Finds
Santander Bank released findings from its GPS Tracker survey, revealing low engagement in high-interest savings accounts. Only 18% of Americans rate themselves as financially knowledgeable, impacting savings rates. The study shows a link between financial knowledge, engagement, and savings outcomes.
Medium and high savers are more likely to use accounts with higher interest rates and exhibit better financial behaviors. Most Americans meet their small savings goals, with millennials and Gen Z showing the highest balance increases. Loud budgeting is gaining popularity, but many are unfamiliar with the term.
Unexpected expenses are the main obstacle to savings goals, with over half of Americans planning to save some of their tax refunds in 2024. The research highlights the changing trends in financial discussions and behaviors among Americans.
- Medium and high savers are more likely to use high-interest savings accounts, showing better financial behaviors.
- Most Americans meet their small savings goals, with millennials and Gen Z showing the highest balance increases.
- Only 18% of Americans rate themselves as financially knowledgeable, impacting savings rates.
- Unexpected expenses are the main obstacle to savings goals for over half of Americans.
- Research reveals a connection between financial engagement and better outcomes, with high-savers regularly checking on their accounts and using a greater variety of professional financial services and tools.
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A majority of Americans plan to save some portion of their tax refund in 2024, but only
16% acknowledged that they did in 2023. - Social trends are shifting, with more Americans openly discussing their financial habits and “loud budgeting” gains traction.
(Photo: Business Wire)
A general lack of financial knowledge is contributing to the low use of savings accounts that earn more interest, with only
“Our study reveals an important link between financial knowledge and account engagement with savings growth and better outcomes for consumers,” said Tim Wennes, CEO of Santander US and Santander Bank. “As a Bank focused on helping our customers prosper, we commissioned this research to uncover the challenges impacting savers and bring to light key actions that could improve the financial outcomes for them.”
The study uncovered a relationship between savings totals and the use of savings account types that generally pay more interest. Medium savers (with
Medium and high savers also exhibit specific financial behaviors more often, such as reviewing their account statements and information. They are also more likely to work with a financial professional or banker, more likely to save a portion of their tax return, and to conduct banking transactions digitally.
Americans Meeting Their – Generally Small – Savings Goals
The Santander Bank GPS Tracker also explored Americans’ monthly savings goals. On average, a quarter (
While Americans show momentum for saving, it’s often a small amount. More than half (
More than half (
Loud Budgeting—Popular, Yet Unknown
The taboo of discussing finances with family and friends appears to be dissipating, with nearly half (
Methodology
This research on growing personal savings, conducted by Morning Consult on behalf of Santander US, surveyed 2,203 Americans adults. This Q1 study was conducted between March 16-18, 2024. The interviews were conducted online with a margin of error is +/- 2 percentage points. 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 of approximately 2,200 Americans adults. The monthly iterations were conducted January 17-19, February 16-18 and March 15-17 to measure month-over-month changes.
The full report and more information about the Santander Bank, N.A. survey and its future quarterly updates 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
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Media:
Andrew Simonelli
andrew.simonelli@santander.us
Caroline Connolly
caroline.connolly@santander.us
Source: Santander Bank, N.A.