• Nearly eight in 10 say saving is a high priority, but seven in 10 are not using accounts that offer higher interest rates.
• Saving a portion of a tax refund in a high-yield savings account, as part of a savings plan, could generate thousands of dollars over time.
• Seven in 10 Americans are optimistic they will save more this year, with younger generations being the most confident.
• More than three-quarters of current high-yield savings accountholders wish they had opened their accounts sooner.

Santander Bank, N.A. (“Santander Bank”) today announced the results of a new survey that found while nearly eight in 10 consumers (78%) say saving is a high priority, seven in 10 (69%) do not use higher-rate accounts — such as high-yield savings accounts, money market accounts and certificates of deposit (CDs) — that would accelerate progress toward their goals. The findings were part of the fourth installment of Santander Bank’s Openbank Growing Personal Savings (“GPS”) Tracker, a research series exploring Americans’ spending and savings habits.

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As Americans focus on building their savings, the beginning of the year is when consumers have been most successful at saving. According to the GPS Tracker, consumers were most likely to add to their savings and meet their savings goals in the first quarter, followed by the second quarter. With 58% anticipating a tax refund and 35% expecting an annual work bonus in the coming months, savers can leverage higher-rate account options as a part of a savings strategy.

“Now is the time for savers to put their hard-earned money to work for them,” said Swati Bhatia, Head of Retail Banking and Transformation at Santander Bank, which recently announced the U.S. launch of Openbank, its national digital banking platform. “With cash infusions such as tax refunds on the horizon, consumers have a prime opportunity to jumpstart their savings goals — especially for younger savers who have time on their side.”

For instance, a $2,000 tax refund with subsequent $100 monthly contributions into a high-yield savings account earning a 4.00% Annual Percentage Yield (APY) grows to $9,072 after five years and $17,707 after 10 years. This includes $1,072 in interest after five years and $3,707 after 10 years¹.

Americans Struggled to Save in Q4, But Have Optimism for 2025

Americans will look to overcome the savings hurdles they faced late last year. More than eight in 10 (82%) reported a savings obstacle in Q4, with too many bills and planned expenses (35%), unexpected expenses (31%) and debt repayment (26%) being the top barriers. Meanwhile, fewer savers added to their balances in Q4 compared to the first half of the year. More than eight in 10 (82%) say persistent inflation made it harder to save, and nearly three-quarters (74%) admit saving became more difficult as the year went on.

Despite these shortcomings, seven in 10 Americans are optimistic they will save more in 2025, with younger generations being the most confident. Encouragingly, more consumers are beginning to take advantage of the opportunity to earn higher rates on their money. More than one in five (22%) recently moved money to a higher-yielding account in December. As a result, of those who know the interest rate on their primary savings account, 45% are earning at least a 3.00% Annual Percentage Yield (APY), up from 40% at the start of the year. Gen Z and millennial savers are more likely than older generations to be earning at least 3.00%, which could contribute to their feelings of optimism.

High-Yield Savings Accounts Make a Big Difference, But Misperceptions Limit Usage

High-yield savings accountholders overwhelmingly agree these accounts build confidence and generate meaningful yield. In fact, more than three quarters (77%) regret not opening their accounts sooner. Nearly all high-yield savings accountholders (92%) would encourage others to open one, with most believing it has helped them build their savings faster (90%) and made it easier to reach their savings goals (89%). Overall, 77% of these accountholders are pleased with their financial progress last year, compared to 50% who only have a traditional savings account.

Despite the positive sentiments among accountholders, misperceptions about high-yield savings accounts may be responsible for their low usage. For example, three-quarters of savers with only a traditional savings account are unaware money in a high-yield savings account is not locked up for an extended period, such as six months or one year, and 34% do not use these accounts for worry of not having quick access to their money. Additionally, nearly six in 10 (58%) do not realize you can open a high-yield savings account without ending your relationship with your primary bank, and 27% cite this as a specific reason for not using these accounts.

Another common misperception is that interest rates on high-yield savings accounts or CDs will not generate meaningful dollars. However, the typical saver with $8,000² in a high-yield savings account earning an Annual Percentage Yield (APY) of 4.00% could generate more than $300 in interest after one year, which is nearly 10x what they would earn in a savings account paying the national average³. Nearly everyone with only a traditional savings account (85%) agrees $300 would be meaningful to their finances.

Methodology

This research on growing personal savings, conducted by Morning Consult on behalf of Santander Bank, surveyed 2,256 Americans adults. This Q4 study was conducted between December 20 – 23, 2024. 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 Americans adults per month. The monthly iterations were conducted October 15 - 17, November 15 - 17 and December 16 - 17, 2024 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 and Delaware. 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 2024, with approximately 173 million customers in the U.S., Europe, and Latin America. It 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 www.openbank.us.

¹Assumes a 4.00% Annual Percentage Yield (APY) for duration with interest compounding monthly. High-yield savings accounts have a variable rate, which may change over time.

²The median savings in bank accounts is $8,000, according to the Federal Reserve.

³The typical savings account has an Annual Percentage Yield (APY) of 0.41%, according to the FDIC as of January 30, 2025.

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