Millions of Brits could be losing hundreds of pounds each year due to a simple banking oversight that's easily avoidable, financial experts have warned.
The Silent Savings Drain
New research reveals that keeping money in low-interest current accounts instead of moving it to savings accounts with better rates is costing UK households a staggering £8.3 billion annually in lost interest.
Why Your Money Isn't Working for You
With the Bank of England base rate at 5.25%, many current accounts still pay as little as 0.1% interest, while some savings accounts offer over 5%. This means:
- £10,000 in a current account could earn just £10 per year
- The same amount in a top savings account could earn over £500
Who's Most Affected?
The problem particularly impacts:
- Younger savers (18-34) who may not regularly check rates
- Those with emergency funds sitting idle
- People who've had the same bank account for years
How to Fix It in Minutes
Financial advisors recommend these simple steps:
1. Check your current interest rate - Log into your banking app or statement
2. Compare savings accounts - Use comparison tools to find better deals
3. Consider easy-access options - Many accounts allow withdrawals when needed
4. Set up regular reviews - Mark your calendar to check rates every 6 months
With inflation still high, making your money work harder has never been more important. A few minutes of financial housekeeping could put hundreds back in your pocket each year.
