Younger savers turning back on ‘outdated’ rainy day savings approach, research from LHV Bank reveals
04 August 2026
Savers focusing on specific goals rather than putting money aside in case of emergencies
- Almost half of savers under 44 believe ‘rainy day’ savings is outdated, with savers far more motivated by specific goals
- Leeds tops table for most goal-focused savers
- Achieving those goals at risk of taking longer because savers aren’t confident they are getting a competitive rate
Younger savers increasingly feel the concept of ‘saving for a rainy day’ is outdated, and are focusing their efforts on saving for specific goals, new research from LHV Bank has revealed.
The survey of more than 2,000 savers found 44% of respondents aged 18-24 felt the idea of rainy day savings was outdated. Similar proportions of savers aged 25-34 (43%) and 35-44 (46%) were equally unmoved by the idea, though the concept did resonate with those aged over 55, where only one in four (28%) felt it was outdated.
Instead, savers are motivated by putting money aside for specific goals. Almost half (48%) of the 18-24 age bracket are more likely to save for particular goals, rising to two thirds (65%) of 25-34 year olds and 60% of those in the 35-44 age group.
Looking at a regional basis, savers in Leeds are the most likely to save for a specific goal (61%), compared with savers in Cardiff (46%)*.
However, while savers are taking an active approach in putting money aside for specific goals, they may not be quite so proactive in ensuring they are getting a decent return. The study identified that while 95% regularly check their balance, and 69% know exactly where their money is kept, more than half (53%) aren’t confident that their savings rate is competitive. This interest rate apathy means they will have to save for longer in order to achieve their goals.
Industry action: make rates more visible to help savers achieve their ambitions
LHV Bank has campaigned for the industry to make interest rates more visible, ensuring savers can establish how competitive their rate is whenever they check their balance. For too long savers have been punished by banks utilising bonus rates that disappear after a year, teaser rates or rate cuts which are carried out quietly, leaving savers in the dark over their underperforming account.
The bank, which champions straightforward, easy to understand accounts, has also encouraged people to become Active Savers in order to achieve their goals more quickly.
To do so, savers should:
- Check your rate. Many people are shocked to discover their account is paying 1% or even less.
- Move your money. With inflation back in the picture, it’s crucial to ensure your money is delivering an inflation-beating return.
- Get in the habit. Set a reminder to review your rate every few months, and keep an eye out for short-term bonus rates that quietly slip away. If you’re checking your balance, check your rate too.
Alex Beavis, Interim Director of Banking, LHV Bank, comments:
“Saving for a rainy day is increasingly viewed as outdated, particularly among younger people, but that doesn’t mean they have switched off from saving. Quite the opposite - they are instead focusing on saving for specific goals, whether that’s a deposit on a house, a holiday or to start their own business.
“That said, it’s important to have some sort of savings buffer in place in case of emergencies. Without some standby cash in an easy access account, savers may find their goal-oriented savings are knocked off course when life throws a spanner into the works.
“While savers are taking an active approach to saving the money needed to meet those goals, there’s a danger that their efforts are being undermined by mediocre savings rates. Savers are suffering because of a lack of transparency from providers, and it’s making them have to wait longer to achieve their ambitions. Having a goal in mind isn’t enough; being an Active Saver means checking your rate as well as your balance, and moving the money if your savings account isn’t working as hard as you are.”
