Millions of savers across the UK could be missing out on hundreds of pounds a year in interest by leaving money in current accounts that pay nothing on their savings, new research suggests.
Study Reveals Widespread Issue
Analysis by savings app Spring found that almost 80 million current accounts currently pay no interest on money held in them, while billions of pounds are sitting in accounts earning no return. The study found that 79.7 million current accounts were paying no interest at the end of March this year.
Across those accounts, around £323 billion was being held despite earning no interest, with the average balance standing at £4,055.
The research also highlighted that more than one million current accounts containing balances of more than £50,000 were earning no interest. Together, those accounts held £116 billion, with an average balance of £111,537.
Survey Shows Savings Habits
A separate survey of 2,000 adults found that many people continue to keep money in accounts that may not offer the best return. More than a third of respondents, 36%, said they keep their savings with an account provided by their main current account provider, while 21% said they keep savings in their current account itself. Just over a quarter, 27%, said they had placed their savings with a separate provider.
Derek Sprawling, head of money at Spring, said many people may be losing out simply through habit or convenience. He said: “Many savers may not realise just how much they could be missing out on by leaving larger sums in a current account that pays no interest. Often, it comes down to convenience or habit, but with balances of £50,000 or more, the missed returns can be significant. This is a reminder to check where your money is held and whether it could be working harder in a competitive savings account. There’s no need to compromise on access to receive a fair rate of return.”
Expert Advice for Savers
The findings come as savers continue to benefit from a range of easy-access savings accounts and cash ISAs offering interest on deposits. Consumer experts regularly advise people to review where they keep their savings and compare rates available across the market, particularly if they have built up larger balances. Even modest amounts held in a current account that pays no interest could generate additional returns if moved to a competitive savings account.
Savers are also being encouraged to check whether they have money spread across multiple accounts and to review rates regularly, as providers can change them over time. With the cost of living remaining a concern for many households, ensuring savings are earning a competitive rate can provide a simple boost to household finances without taking on additional risk.
