LHV Bank study shows younger UK savers abandon rainy‑day savings

Research by LHV Bank surveyed more than 2,000 UK savers and found that the traditional “rainy‑day” savings mindset is losing appeal among younger adults. About 44% of respondents aged 18‑24 said the concept is outdated, with similar shares of 25‑34‑year‑olds (43%) and 35‑44‑year‑olds (46%). Only 28% of those over 55 felt the idea was outdated.

Instead, savers are turning to goal‑oriented saving: 48% of 18‑24‑year‑olds, 65% of 25‑34‑year‑olds and 60% of 35‑44‑year‑olds said they prefer saving for specific objectives. Regionally, Leeds residents were the most likely to save for a goal (61%), while only 46% of respondents in Cardiff did so.

Although 95% of participants regularly check their account balance and 69% know where their money is held, more than half (53%) lack confidence that their savings rates are competitive. LHV Bank urged the industry to make interest rates more visible, recommending that savers check their rates, move money to higher‑yield accounts, and set reminders to review rates regularly.