A growing divide is emerging between how younger Generation Z and older generations approach saving money.
Recent research shows that younger savers prioritize everyday perks from their banks—such as free coffee or meal delivery—over traditional benefits like high interest rates. According to Investec, three-quarters of adults aged 16 to 28 value banks that reward everyday spending, according to Pay UK, which operates the Current Account Switch Service.
Over half of those surveyed said that small perks such as free coffees, food, and cashback matter more than conventional financial incentives. Other incentives offered alongside current accounts include cinema tickets, online streaming subscriptions, and restaurant discount cards. While many accounts also provide preferential savings rates, two-thirds of young people said it was the “little treats” that made them feel they were getting extra value.
This trend suggests that younger savers are moving away from the traditional focus on high interest rates in favor of tangible, immediate rewards.
Separate research by Investec also found that four in ten adults use a “savings ladder” strategy, holding multiple fixed-rate accounts with different maturity dates. This approach allows savers to maximise returns while keeping regular access to their funds. Nearly three-quarters of those using the ladder cited securing the best available rates as their main reason.
Experts suggest that Gen Z’s preference for perks over cash reflects changing priorities. Many young people feel that major financial milestones—such as buying a home, getting married, or starting a family—are increasingly out of reach. As a result, they focus more on enjoying small luxuries today rather than saving for the long term.
John Dentry, product owner at Pay UK, said: “Gen Z aren’t looking for complex financial products or future-oriented rewards—they want to see value in their day-to-day lives. Big milestones feel further away for many, especially given current cost-of-living pressures.”
