More than £250bn in UK current accounts making no interest at all
Research has found that there is around £270bn in current accounts across the UK making no interest at all. And it’s time for savers to move their money.
Households have an average of £8,267 stored in current accounts but are missing out on hundreds of pounds extra each month, an investment firm reveals.
Research by Hargreaves Lansdown shows if savers put that amount of money into an easy access account with 4.93% interest, they would be £417 wealthier every year.
Too keen to have money at ‘our fingertips’
Sarah Coles, head of personal finance at Hargreaves Lansdown said: “We’re throwing away more than £400 a year because we’re so keen to have cash at our fingertips.
“The average household has £8,267 sitting in current accounts, and while we need some of this for essential spending, there’s every chance we’re keeping too much to hand, and managing our cash better could net us hundreds of pounds in interest every year.
“Last year, our research showed that around one in five savers keep at least some of their savings in a current account. When we choose where to keep our savings, the top consideration is how easy it is to get access to our money.
“However, we don’t need to lock it away in order to make our money work harder – with easy access accounts offering up to 4.93%. It means we can have the best of both worlds – accessibility and interest.”
More awareness needed
The study comes after the mutual, Shepherds Family, revealed over a quarter of UK adults are saving with a current account as opposed to an ISA.
Two thirds of respondents (66%) were also unaware that the Government offered a 25% bonus on top of savings into a Lifetime ISA (LISA).
To make sure you’re aware of the best savings rates around, check out our rundown of top accounts on offer right now.