Seventy five percent believe their saving habits will improve in the next 12 months, identifying factors they feel would help them save more money
New York, NY — Oct. 12, 2023 — Amidst ongoing economic uncertainty, most people know they should be saving a portion of their income to cover unexpected expenses, mitigate financial stress and plan for a more secure future. However, according to a new National Savings Day survey released today by Laurel Road, a digital banking platform of KeyBank with specialized offerings for healthcare and business professionals, only 4 in 10 Americans could live off their cash savings for longer than four months.
The survey, which explores how Americans view the importance of saving, how and why people save and how people have shifted their strategies for saving over the last three years, found that since the beginning of the pandemic, 9 in 10 people had to tap into their savings accounts for emergencies. These emergencies include unexpected debt (16%), rising rent or mortgage payments (16%) and unforeseen medical bills (14%.)
Despite most people needing to utilize their savings to cover unexpected expenses, the majority (71%) also noted that they are satisfied with their current balance. Over the last year, survey respondents reported increasing their cash savings accounts by an average of $23,474 and plan to add a similar amount in the next 12 months ($24,520). Three in 4 (75%) also believe their saving habits will improve over the next 12 months and identified monthly savings challenges with incentives (60%), reminders for when their bills are due (52%) and a financial advisor or money mentor (52%) as the top thing they feel would help them save more money.
“In a higher rate environment like we’re in now, opening and funding a high yield savings account can help your money grow, bringing you closer to meeting your financial goals,“ said Alyssa Schaefer, General Manager and Chief Experience Officer at Laurel Road. “Over two-thirds (67%) of respondents are familiar with high-yield savings accounts but haven’t yet opened one. By continuing to educate and engage with our members on the specific benefits of these accounts, we can demonstrate how they can aid in meeting both long-term and short-term financial goals.”
Over the next few months people also reported plans to shift their priorities and set new financial goals for 2024, including:
- Saving for a down payment on a home or apartment – 51%
- Setting a new budget – 44%
- Starting an emergency fund – 42%
- Improving my credit score – 36%
- Consolidating or refinancing my debt – 33%
- Paying down or paying off my student loans – 31%
- Getting a higher-paying job – 30%
- Automating monthly payments – 24%
- Finding a money mentor or financial advisor – 21%
- Investing in an asset – 20%
While working toward their savings goals, many respondents are keeping up their pre-pandemic habits, with a similar amount continuing to pay themselves first (59%), regularly setting money aside for a specific purchase (55%) and investing (52%). Americans are continuing to become more educated on the value of interest-bearing accounts, as 41% of respondents factor in interest rates when opening a new savings account.
“Research is key – finding a bank that offers the option to earn a higher return on your savings can streamline the path to your financial goals,” said Kaitlin Walsh-Epstein, Chief Marketing Officer at Laurel Road. “With a high yield savings account, you can watch your money grow through compound interest. These accounts, like the one offered by Laurel Road, enable you to get a higher return by reinvesting your earnings and allowing you to earn interest on that higher amount. With regular contributions into this type of account, your money can work harder toward your savings goals.
Methodology
This random double-opt-in survey of 2,000 U.S. adults ages 18–58 with a savings account was commissioned by Laurel Road between Sept. 13 and Sept. 21, 2023. It was conducted by market research company OnePoll, whose team members are members of the Market Research Society and have corporate membership to the American Association for Public Opinion Research (AAPOR) and the European Society for Opinion and Marketing Research (ESOMAR).
About Laurel Road
Laurel Road is a digital banking platform and brand of KeyBank that provides tailored offerings to support the financial wellbeing of healthcare and business professionals. Laurel Road’s banking and lending solutions, including Loyalty Checking and High Yield Savings accounts, Student Loan Cashback Credit Card, Student Loan Refinancing, Mortgages, Personal Loans and more, provide our members with a simplified, personalized experience that helps them better navigate their financial journey and achieve life’s goals. Additionally, through a partnership with GradFin, one of the nation’s leading PSLF providers, Laurel Road offers student loan counseling services that help borrowers manage and understand their options.
Laurel Road has reimagined banking and financial management for physicians and dentists through Laurel Road for Doctors, a tailored digital experience made up of banking, insights, and exclusive benefits to provide the financial help and peace of mind they need through each career stage. In spring of 2022, Laurel Road also launched Loyalty Checking, the first checking account designed with nurses in mind, furthering the company’s commitment to healthcare professionals.