UK households with £5,001 in bank current account issued warning – The Mirror
Need to know
Yorkshire Building Society research shows more than 12 million UK current accounts are paying 1% or less in interest on balances above £5,001, meaning people are missing out on significant returns
Need to know: UK Savers Missing Out on Billions in Interest, Warns Yorkshire Building Society
Yorkshire Building Society has issued a chilling warning to UK savers, revealing that over 12 million current accounts are earning just 1% or less in interest on balances above £5,001.
The research shows Brits are missing out on billions in potential earnings, with a staggering £526 billion sitting idle in current accounts earning no interest. Some 29 million people are losing out on £20 billion annually by not moving their money to high-interest savings accounts.
Tina Hughes, director of savings at Yorkshire Building Society, said: “Yet millions are still missing out on easy wins – like earning interest on their savings.”
More than half (55%) of people now feel stressed about their finances, with nearly a quarter planning to use credit cards to cover Christmas costs. The proportion planning to spend over £1,000 has crashed from 51% to just 15%.
One in three people have £5,000 sitting in their current account, while the average current account balance is £2,067.
Experts warn that savers placing £5,000 in the best easy-access account paying 4.76% interest could earn around £243, compared to virtually nothing in current accounts.
The research highlights widespread apathy among savers, with one in ten admitting they simply haven’t got around to moving their money to better-paying accounts.
For savers who actively seek higher returns, the difference can be significant. For example, if £5,000 were placed in the best easy-access savings account paying 4.76 per cent interest, it could generate around £243 in interest.
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