State of Deposits:
Compared to 2024, optimism is down for personal finances and remains low for overall economic outlook.
Drawing from new consumer and banking trend insights in the ProSight Banking Outlook survey fielded in September 2025, this infographic highlights generational shifts in economic outlook, deposit behavior, and key market dynamics shaping the coming year. Explore where banking is headed as we track the state of deposits going into 2026.
Consumer Financial Health
Looking at 2026
of consumers believe their financial situation will improve from September 2025 to February 2026, down 9% compared to September 2024.
Only 44%
82%
of bankers projected positive deposit growth by 2026.
(vs. 29%-39% September 2024)
Economic Outlook and Consumer Sentiment
1
Millennial optimism is down nearly 20% from a year ago.
Gen Z and Millennials anticipate a market decline in early 2026, leading to their weakening optimism.
deposit growth
32%-44%
Despite the low optimism for personal finance, consumer optimism about the economy is slightly up across generations:
Cash and rate incentives are influencing account and deposit growth, particularly for Gen Z and Millennials.
A higher percentage of younger generations plan to use extra deposits to pay down debt.
millennials
gen z
gen x
boomer+
34%
35%
26%
22%
2026 Growth
Debt repayment
Cash and rate incentives
Customer Primacy and Switching
Younger generations are dealing with the most fees; older generations are not seeing these trends as they tend to be wealthier and more stable.
26%
of Gen Z has been charged an overdraft fee
26%
of Gen Z has paid late fees on their credit cards
Older generations are not seeing these trends as they tend to be wealthier and more stable.
Because of this, younger generations are more likely to switch banks. Primacy is increasing for large banks at the expense of direct/alternative banks.
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Key Consumer Deposit Trends
2
Due to rising interest rates, retail money market funds (MMFs) have gained traction, with increased movement of funds away from traditional financial institutions.
Notable Shift
Signs of Deposit Growth Recovery
Deposit Growth by Wealth Segment
Segmentation highlights why growth remains slow.
Market Pressures
Inflation and tariffs have reduced overall deposit growth by approximately 0.5%, contributing to the lag behind projected trends.
0.8%
Weekly deposits are only down
(vs. down 2.2% in December 2024)
0.4%
Super regional banks are up
(vs. down -3.2% in December 2024)
Super regional banks are helping with the deposit growth recovery.
3.2%
Super regional banks were down
this time last year.
2.2%
Weekly deposits were down
this time last year.
200%
representing 11% of households have seen
Affluent deposits
>$500K in investable assets
growth in 2025.
113%
representing 48% of households have fallen by
reflecting financial strain.
mass market
<$100K in investable assets
Key Small Business Deposit Trends
3
Looking ahead into 2026
On paper, weekly YoY comparisons show overall growth, but small business deposit growth will likely end 2025 at -2% to -3%. This is largely due to businesses withdrawing funds for expenses and end-of-year bonuses.
Cash still remains king with the current rate environment making borrowing too costly for small businesses.
High rates may discourage deposits, while cuts could fuel renewed growth.
deposit growth
cds
MMDAs
Non-checking accounts
+11.8%
Growth slowing. Compared to +37% in December 2024.
+8.7%
Current rate environment driving growth. Compared to +3.8 in December 2024.
+7.8%
Compared to +7.9% in December 2024.
Plan to switch primary financial institution in next 6 months
gen z
20%
millennial
gen x
boomer+
35%
21%
32%
12%
5%
3%
2%
2025
2024
Top 2 Reasons for Switching
gen z
gen x
boomer+
millennial
33%
lowest fees
best rates
32%
42%
37%
42%
39%
44%
40%
Cash and rate incentives
Debt repayment
2026 Growth
Non-checking accounts
MMDAs
cds