Santander US Survey Finds Optimism Rising Among Middle-Income Households as Concerns about Inflation and Recession Ease

Santander Holdings USA, Inc. (“Santander US”) today announced findings from its recent Paths to Prosperity survey showing middle-income Americans are optimistic about their financial futures, with 74% believing they are on the right track toward financial prosperity during the first quarter of 2024.

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(Graphic: Business Wire)

Middle-income Americans’ concerns about a possible recession and inflation appear to be easing. Many households have adjusted to rising prices, with 45% saying they are better equipped to handle increased prices. While inflation remains a top concern, it was cited by only 46% of respondents, versus 57% in Q2 of 2023. During the same period, those expecting a recession in the next 12 months dropped from 69% to 60%.

“While middle-income households have had to navigate higher prices due to inflation, it is encouraging to see consumers taking positive steps to manage their finances and adjust their household budgets,” said Tim Wennes, CEO of Santander US. “At the same time, many continue to miss out on the opportunity to leverage the current rate environment to grow their savings. For most consumers, this is the first time in a generation when they can be earning meaningful interest on their hard-earned savings.”

The survey found that six in 10 middle-income Americans have not moved money to earn higher yields on their savings, and more than one in four do not know their current rate. Of those who know what their current rate is, 56% of middle-income consumers are earning less than 3%.

The data uncovered the opportunity for digital banking to remove barriers for middle-income households by reducing the time and effort it takes to open an account. About seven in 10 middle-income Americans (68%) would consider opening a new savings account to receive a higher rate of interest if the account could be opened in under 10 minutes. Further, 64% of consumers would be more likely to move money into a higher yielding account if they could do it digitally. The Santander US survey found consumers believe opening new accounts can be done quicker digitally.