Millions of UK savers could be missing out on hundreds of pounds a year by leaving their money in accounts that pay little or no interest. With household finances still under pressure, people are being urged to check where their cash is being kept and whether they could get a better return elsewhere.
Zero-interest accounts hold £321 billion
New figures show huge amounts of money are currently sitting in current accounts without earning any interest at all. According to CACI data analysed by Skipton Building Society, around 80 million personal current accounts were paying zero interest as of May 2026.
Together, those accounts held a staggering £321 billion, meaning some savers could potentially earn more from their money by moving it into a suitable savings account.
Potential £800 tax-free interest
Skipton is now encouraging people to review their finances, with many families currently enjoying their summer holidays or beginning to think about plans for next year. The building society calculated that someone putting the full £20,000 annual ISA allowance into a one-year fixed-rate cash ISA paying 4% AER could earn £800 in tax-free interest over 12 months.
That £800 could make a big difference when it comes to paying for a holiday. Skipton said, for example, it would be enough to cover a seven-night package holiday to Tenerife costing £709 for a solo traveller, with money left over for other expenses.
Encouraging savers to act
Families could also put the extra return towards a holiday in summer 2027, helping to reduce how much they would need to find from their existing income or savings.
Alex Sitaras, head of savings at Skipton Building Society, said: "At a time when many are jetting off on their summer holiday, it's worth remembering that making your savings work harder can be just as effective as finding extra money to save.
"Whether it's earning a little bit of extra towards flights or accommodation, using a cash ISA can help ensure you're getting the most out of your savings allowance.
"Yet millions of savers are missing out on returns that could make a difference to their plans by leaving money in little or no interest accounts."
