More than one million Brits are failing to take advantage of straightforward money-saving opportunities, according to new analysis.
Research from savings provider Spring revealed there were 1.04 million current accounts containing over £50,000 at the end of March this year that earned zero interest, with a total of £116 billion lying dormant. The typical balance in these accounts stood at £111,537. The findings are set to renew debate over whether banks are doing sufficient for savers.
While numerous high street banks offer little or no interest on current account balances, they are able to utilise those deposits to fund lending through mortgages, personal loans and credit cards, where customers generally face considerably higher borrowing rates.
The difference between what banks earn on loans and what they pay savers has helped fuel a profits boom across the industry in recent years. Britain's largest banks continue to deliver substantial earnings.
Lloyds Banking Group announced pre-tax profits of £6.7 billion for 2025, up 12% on the previous year, while NatWest recorded pre-tax profits of £7.7 billion, a 25% increase. According to Spring's research, based on data from consumer intelligence provider Caci, 79 million of the UK's 91 million current accounts in credit – approximately 87% – offered no interest whatsoever on balances.
Derek Sprawling, head of money at Spring, said many people were oblivious to how much they were forfeiting. He explained: "Often, it comes down to convenience or habit, but with balances of £50,000 or more, the missed returns can be significant."
Spring's research revealed that 36% of people keep their savings with their primary current account provider, while 21% store savings directly in their current account. The firm said a mixture of routine, uncertainty and bewilderment was stopping people from transferring money into better-paying accounts. The price of inaction can be considerable.
According to the Bank of England's inflation calculator, something costing £100 in 2016 would now cost approximately £140. Inflation currently sits at 2.8%, but reached a peak of 11.1% in October 2022 during the cost of living crisis.
In contrast, savers prepared to transfer their money can obtain substantially better returns. Finance website Moneyfacts states the average easy-access savings account currently delivers around 2.5%, while the average one-year fixed-rate account provides 4.23%.
Savers are missing out on an average of £4,700 a year based on the average balance of £111,537 and the average one-year fixed savings rate of 4.23%.
Cash ISAs offer comparable rates, with one-year fixed arrangements averaging 4.25%. Interest generated within a cash ISA stays tax-free, helping clarify why savers have been racing to utilise the allowance before scheduled changes come into force.
Bank of England data shows savers deposited £12 billion into cash ISAs in April alone – the second-largest monthly influx ever documented. The surge arrives ahead of a planned cut in the annual cash ISA allowance from £20,000 to £12,000 from April 2027.
Charlene Young, senior pensions and savings expert at AJ Bell, said many savers were eager to make the most of the current allowance while they still have the opportunity. However, she cautioned that inflation continues to pose a threat to cash held in low-paying accounts.
She said: "We already had sticky inflation before the Iran conflict, and further surges are expected as the full impact of supply chain disruption and energy shocks filters through."
