Gen Z prioritise everyday perks over interest rates when choosing banks

January 19, 2026

Pay.UK, the owner and operator of the Current Account Switch Service, has commissioned new research revealing that Gen Z in the UK are more likely to judge a ‘good bank’ by everyday rewards and digital convenience than by traditional interest rates.

The study surveyed 1,004 UK adults aged between 16 and 28 and found that nearly three-quarters (72%) of Gen Z value banks that reward everyday spending rather than financial milestones.

More than half of respondents said that perks such as free coffees, food discounts and cashback were more important than interest rates (51%) or traditional loyalty programmes (53%).

Expectations around lifestyle fit were also prominent. Almost two-thirds (64%) of respondents expect their bank to provide rewards that align with their daily lives, while 65% said that small “little treats” make them feel they are receiving extra value.

These everyday benefits appear to influence behaviour beyond spending, with 72% saying that finding deals on small indulgences motivates better money management. Additionally, 60% associate these rewards with improved wellbeing, highlighting the emotional resonance of practical perks.

The appeal of everyday rewards is also shaping customer loyalty. In Greater London, 53% of Gen Z respondents said they would consider switching banks for better perks, compared with 48% in the East Midlands.

Age differences were evident within the cohort, with older Gen Z consumers aged 25 to 28 showing the highest intention to switch providers. Meanwhile, younger respondents aged 16 to 24 demonstrated the strongest emotional response to rewards.

Digital accessibility plays a critical role in how Gen Z engages with banking rewards. Two-thirds (66%) said it is important that rewards are available directly through their banking app, while 56% prioritise digital-first banking experiences above all else.

Pay.UK product owner John Dentry said, “Gen Z aren’t looking for complex financial products or rewards to target in the future – they want to see value day to day. For many younger people, the big milestones such as stepping onto the property ladder, getting married or starting a family feel further away than they did for previous generations, especially in the context of cost-of-living pressures.

“Small practical perks that fit naturally into everyday spending make people feel rewarded and supported, and with the Current Account Switch Service making it easier than ever to move providers, banks and building societies that fail to deliver relevant, everyday value risk losing younger customers to those that do.”