ANN ARBOR, Mich.—Although they would seem to be relatively similar, a new survey has found return on investment (ROI) is the top determining factor for Americans when choosing a savings product, followed closely by interest rate.
That’s according to the 2024 State of Savings Report from Plinqit, a platform that offers automated savings, data-driven financial wellness content and virtual account management.
The survey was conducted online by The Harris Poll of more than 2,000 U.S. adults ages 18 and older.
“The survey report reveals that while savings methods clearly vary among consumers, some are more effective than others in generating returns,” Plinqit said in releasing the findings.
The Findings
According to Plinqit, the findings include:
- 41% of Americans say the top factor used to decide where to save their money is the ROI an account can generate for them.
- 37% cited interest rates as the most important factor.
- Household income also plays a role in these decisions, as the more income a household earns, the more likely they are to consider ROI when deciding how to save their money. Compared to Americans with an annual HHI of less than $75,000, those with HHI of $75,000 or higher are nearly twice as likely to consider ROI as a determining factor (52% vs. 27%). They are also more likely to base their decision on recommendations from a financial advisor (37% vs. 22%), Plinqit said.
‘Better Understand’
“About a third of Americans reported that when choosing a savings account, they consider how easy it is to understand the account and how it works (34%), or what is available at financial institutions where they have an existing relationship (31%) also play a role in where they choose to stash their savings,” Founder and CEO Kathleen Craig said in a statement. “Uncovering the behaviors of consumers and the factors that play a role in their financial choices, such as household income and age, can help financial institutions better understand how to support their customer segments with the right product offers and recommendations that help them thrive financially.”
The full report is available here.