Millions of Nationwide Building Society customers have received a welcome financial boost, with the mutual announcing that savers earned an average of £436 in interest over the past year. This comes as new research commissioned by the society reveals ambitious savings targets for 2026, particularly among younger adults.
Ambitious Savings Goals for the New Year
According to a poll of over 2,000 UK adults, people plan to save an average of £7,535 in 2026. However, this figure masks a significant generational divide. Those aged 25 to 34 are by far the most ambitious, hoping to save an average of £14,912 – nearly double the overall average. Despite this high ambition, more than half of this age group realistically expect to save less than £5,000.
The research also found a gender gap in savings targets. Men who plan to save are aiming for an average pot of £9,360, compared to £5,826 for women. Overall, the outlook is positive, with one in three adults planning to save more than they did last year and 43 per cent expecting to save the same amount. However, one in ten admit they do not plan to save anything at all in the coming year.
The Savings Reality Gap and Missed Interest
While the average interest earned was £436, the reality for many is less rosy. The study highlighted that a significant 13 per cent of savers earned no interest whatsoever in 2025. A key reason for this is where people keep their money; 19 per cent use current accounts to save, as opposed to dedicated savings accounts or ISAs which offer better returns. Furthermore, two in ten earned less than £50 in interest, despite widely available higher rates.
The psychological impact of saving is also uneven across age groups. 78 per cent of 18–24-year-olds confess that the thought of trying to save causes them stress, compared to just over half of those aged 45 to 54. When it comes to priorities, only 17 per cent of 35-44 year olds are currently saving for retirement, while 46 per cent of the same group are prioritising building an emergency fund.
Expert Advice to Boost Your Savings
Richard Stocker, Head of Savings at Nationwide, commented on the findings. “It’s encouraging that most people aim to save in 2026, with many planning to put away more next year,” he said. “However, too many are missing out on interest by leaving money in current accounts.”
Stocker offered clear guidance for savers looking to improve their financial habits in the new year. His advice includes:
- Start early and save regularly to build a consistent habit.
- Make use of helpful tools such as the budget calculator on the Nationwide app.
- Benefit from incentives like the society's £175 bank account switching offer, which can kickstart a savings pot.
The research underscores a national drive to build financial resilience, though it also reveals clear gaps between ambition and reality, as well as widespread missed opportunities to earn interest on hard-saved cash.
