HSBC UK has launched ‘Saving Goals’, a new feature on the bank’s mobile app that aims to help customers develop healthy saving habits.
The bank has designed the feature to create and reinforce healthy saving habits for its customers. This is done by helping its app’s users recognise, plan and manage their saving goals.
Customers are provided with a list of short to medium goals, which include examples such as travel, a new car or a new business venture, allowing the user to set a target amount and a date to hit their goal. The app then allows users to set up a regular transfer of funds into their savings account and track their progress.
Pella Frost, Head of Everyday Banking at HSBC UK, commented: “Saving money can be easier when you have a goal in mind. With Savings Goals you can make a plan for achieving your aims and contribute on a regular basis. This is another step forward in helping our customers build great savings habits and achieve financial resilience.
“Before opening a savings account, we always recommend you review your budget so you know how much you can afford to lock away and for how long.”
Alongside the launch of this new feature, HSBC has published data on the saving habits of the UK.
HSBC has found that nearly nine in ten (87%) 16-24-year-olds have a savings account, which is more than any other age group. Despite this age group opening the most savings accounts, Gen Z are the biggest savers with just under half (48%) putting away 20% or more of their monthly income – a trend that decreases with age with only 12% of 45-54-year-olds doing the same.
Aligning with HSBC’s aforementioned goal targets, the data shows travel, emergency funds and home improvements are among the most popular reasons to save, with around 20% of the Gen Z population saving towards a house deposit.
Furthermore, people under the age of 24 are most likely to dip into their savings pot for everyday living expenses (21%) or pay off debt (20%), making an average of three withdrawals each year. This demographic is also most likely to worry about whether they are saving enough, with one in five (22%) feeling stressed about the amount they save.
Notably, research found that one fifth (20%) of the population do not stick to their savings budget with a further 11% not having a budget at all.
Last month HSBC UK launched its first Fixed Rate Cash ISA in over a decade. Since its launch, the bank has seen balances grow.
Frost concluded: “Fixed rate ISAs are an excellent way to save for short term goals such as booking a holiday or buying a car. By locking your money away for a set period at a fixed interest rate, you can develop a healthy savings habit.”
HSBC underwent a leadership change earlier this year. Group Chief Executive Neil Quinn, announced in April that he was retiring after a five-year tenure in the role. However, Quinn will remain in the role until a new CEO is found.
