Nearly £400billion is languishing in UK current and savings accounts earning one percent interest or less, according to analysis.
Around £380.9billion is estimated to be sitting in current accounts paying between nothing and one percent and instant access non-ISA savings paying 0.01 percent to one percent.
The research, from Yorkshire Building Society and data consultancy CACI, also indicates there are nearly 13 million current accounts held in the UK with balances above £5,001.
A survey for Yorkshire Building Society also found that more than half (55 percent) of savers have not compared the interest paid on their accounts in the past year.
The Opinium survey was carried out among 2,000 people across the UK in October 2023.
Nearly half (49 percent of people surveyed said they had dipped into their savings in the past 12 months. The average amount that people felt they needed to be able to access right away was £4,000.
Meanwhile, separate figures from the financial information website Moneyfacts show that on Wednesday this week, the average easy access savings rate on the market was 3.16 percent while the average one-year fixed savings rate was 4.76 percent.
Chris Irwin, director of savings at Yorkshire Building Society, said: “Despite savings interest rates getting a lot of attention over the last year, following the significant increases in the (Bank of England) Base Rate, it’s surprising that there are still large pockets of people who are significantly missing out on savings interest – shopping around can now make a substantial difference to the returns available.
“Keeping large amounts of funds in low-paying current accounts has become a costly mistake for millions.
“Keeping large amounts of funds in low-paying current accounts has become a costly mistake for millions.
“It’s understandable to want to have money accessible for emergencies or even topping up everyday expenses, but with so many instant access savings accounts currently available in the market paying a much higher return, there has never been a better time to review the home of your savings.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk said: “Loyalty does not always pay on savings accounts and the convenience of using a current account is costing consumers in interest they could earn elsewhere, as many bank accounts pay little or no interest.
“It is vital consumers shake any apathy by comparing the latest savings rates and moving their money to grab a better deal. The beginning of a new year is a great time to start saving if someone does not have a nest egg to fall back on.”
Top easy access savings accounts with high interest
Metro Bank – Instant Access Savings Account – 5.22 percent
Metro Bank is offering savers an Annual Equivalent Rate (AER) of 5.22 percent on its instant access account.
At least £500 must be deposited within 28 days to earn the limited edition rate and interest is paid monthly. Access is allowed at any time in a branch, online, or by phone.
Ulster Bank – Loyalty Saver – 5.2 percent
Ulster Bank falls just behind with an AER of 5.2 percent on deposits of over £5,000. Those with deposits lower than £5,000 will be paid a lower AER of 2.25 percent.
Interest is paid annually and on account closure, and withdrawals are permitted at any time up to the daily limits.
Cahoot – Simple Saver (Issue Two) – 5.12 percent
For savers with a smaller deposit, Cahoot’s Simple Saver (Issue Two) is offering an AER of 5.12 percent. Cahoot, a division of Santander, offers savers the deal from a minimum deposit of just £1.
Interest is calculated daily and can be paid annually or monthly and withdrawals can be made at any time by transfer to another account.
Kent Reliance – Easy Access Account (Issue 67) – 5.11 percent
Kent Reliance is offering an AER of 5.11 percent on its Easy Access Account (Issue 67). The account can be opened with a minimum deposit of £1,000 and up to £1million can be invested overall.
Interest is calculated daily and applied annually and withdrawals are permitted.
Cynergy Bank – Online Easy Access Account (Issue 69) – 5.1 percent
Cynergy Bank is offering an AER of 5.1 percent on its Online Easy Access Account and savers can get started with just £1. The interest includes a 1.1 percent bonus for 12 months and is paid on the anniversary of opening.
Up to £1million can be invested overall and withdrawals are allowed.
