Gen Z Leads Savings Growth, 74% Show Interest in CDs

Gen Z Americans are demonstrating strong saving habits in 2025, with 58% having increased their savings since the start of the year and 69% making lifestyle sacrifices to save more. This generation shows a growing interest in certificates of deposit (CDs) as a way to secure higher returns, although only a small percentage currently hold CDs, indicating an opportunity for financial education. Digital banking options are favored by 63% of consumers for offering more competitive rates, and savers who use high-yield accounts or CDs are seeing better savings growth. Santander Bank highlights that younger generations prioritize growing their savings and are motivated to cut spending even amid economic challenges, but many still keep money in low-interest traditional savings accounts. While Gen Z in the U.S. embraces CDs, a similar hesitation is noted among younger Australians who prefer flexible investments over term deposits, though experts argue term deposits offer protection against falling interest rates in a rate-cutting environment. Overall, Gen Z's saving discipline and openness to new financial tools suggest a shift towards more proactive financial planning and growth strategies among younger consumers.