Discipline, digital banking, and CDs help a new generation turn saving into growth

Young Americans continue to demonstrate a desire to start their adult lives on a sound financial footing and realise that there is a range of options available to help them.

Gen Z consumers are not only saving more, but they’re also beginning to explore new tools like certificates of deposit to maximize their efforts with 58% of this cohort having grown their savings since the start of the year.

According to Santander Bank’s Q2 2025 Openbank Growing Personal Savings Tracker, 54% of Millennials have also grown their savings, compared with 47% of Gen X and just 39% of Baby Boomers.

The majority of Gen Z (81%) and Millennials (79%) say growing their savings is a top priority, and 69% of Gen Zs and 62% of Millennials made lifestyle trade-offs in the past three months to save more.

Eight in ten respondents from the two younger generations indicate that boosting their savings is their top financial priority and 69% of Gen Zs and 62% of Millennials indicated a willingness to make sacrifices to achieve this.

“It’s encouraging to see younger consumers embracing the importance of saving,” says Swati Bhatia, head of retail banking & transformation for Santander Bank and CEO for Openbank in the US. “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.”

Yet while Gen Z has shown discipline, many are missing out on stronger returns by keeping their money in traditional savings (43%) or even checking accounts (31%), where interest rates remain minimal. Among Gen Z savers who know their rate, fewer than four in ten (38%) are earning at least 3.00% APY, a benchmark for competitive yield.

However, growing interest in CDs, expressed by 61% of respondents, is led by Gen Zs.  While only 8% of Gen Z currently hold one, nearly three-quarters (74%) said they would consider opening a CD before rates decline.

“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 adds. “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.”

Another key finding is the role of banking providers in shaping confidence with more than 80% of consumers say selecting the right financial institution is critical to hitting their savings goals, and a similar share would consider a digital bank as their primary option.

But branches still matter with 70% saying they’d feel more secure with a digital provider if it also had physical locations.

Finally, good habits separate those who meet savings targets from those who don’t. Strategies like budgeting, reducing spending, and automating transfers correlate with higher success rates and savers using high-yield accounts or CDs were far more likely to hit their goals, with 68% achieving them versus just 32% of those without.