Gen Z could miss out on earning £175m from savings by not shopping around for the best interest rates, Yorkshire Building Society has found.

New data by the society has revealed that over half (52%) of Gen Z, those born between 1997 and 2012, have not saved in the last two years.

Of this proportion, almost two thirds (65%) said this was because of cost of living pressures, 13% said that paying off debts prevented them from savings, and the same number cited that they didn’t want to.

Where they have been able to save, nearly half, equating to 1.4 million individuals, are inactive savers, who do not shop around for the best interest rates.

Those who are savings are putting aside an average of £292 per month, amount to an average savings pot of £4,729.

Yorkshire Building Society found that young people are more likely to spend more time reviewing their finances, with over a third (35%) spending over an hour a week on activities related to this, such as budgeting or tracking expenses, compared to a quarter (26%) of the wider population.

Thy are also more active in trying to improve their financial skills than other adults, with two fifths (43%) saying they seek out financial education resources.

Despite this, over half (55%) have not changed their savings provider in the last year, while one in seven (15%) admitted to never having checked the interest they are earning, meaning that they could be missing out on additional interest.

Director of savings at Yorkshire Building Society, Chris Irwin, said: "Despite a willingness to spend time looking after their finances, it is clear from this data that many young people are missing out when it comes to their savings.

"Many also said they lack confidence to make important financial decisions, leading to large pockets of people who are missing out on significant savings interest. If we support and encourage these young adults to shop around now they could be getting a lot more back for their money, now and through their lifetimes.

"Keeping large amounts of funds in low paying current accounts has become a costly mistake for millions. It’s understandable to want to have money accessible for emergencies or even topping up everyday expenses, but with so many instant access savings accounts currently available in the market paying a much higher return, there has never been a better time to review the home of your savings."

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