Brits are being warned they could be missing out on significant returns after analysis found over a million current accounts with balances over £50,000 earn no interest. Savings app Spring discovered 1.04 million such accounts, which collectively held a staggering £116 billion at the end of March. The average balance of these accounts was £111,537.
Analysis Reveals Widespread Issue
Spring's analysis also showed that 91.2 million current accounts were in credit in March, and of these, 79.7 million paid no interest on balances — equivalent to 87%. The app's survey of 2,000 adults suggests savers are failing to make the most of their money, attributing this to a mix of confusion, uncertainty, and habit.
Expert Insight
Derek Sprawling, Head of Money at Spring, 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." He added: "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."
Broader Savings Landscape
The analysis also shows that across all current accounts receiving no interest, the average in-credit balance stood at £4,055, with £323 billion in accounts that pay no interest. In Spring's survey, over a third of respondents (36%) admitted to keeping their savings in an account provided by their main current account provider. Just over a fifth (21%) said they kept their savings in their current account, while just over a quarter (27%) said they held their savings with another provider.
National Savings Trends
The latest Money and Credit report from the Bank of England shows cash holdings in banks and building societies rose by £5.5 billion in March. A survey from Finder, reported by Forbes, indicates an average savings balance of £19,214 this year, with the figure falling to £9,888 for under 55s. In total, cash deposits and savings in the UK stand at £1.98 trillion, and bank deposits are at a record high of £1 trillion. However, Finder's survey found that 39% of Brits have £1,000 or less saved, and 25% have £200 or below. Some 8.9 million people have no savings at all.
