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.
- READ THE FULL STORY: UK households who have £5,001 sitting in bank current account issued warning
At Reach and across our entities we and our partners use information collected through cookies and other identifiers from your device to improve experience on our site, analyse how it is used and to show personalised advertising. You can opt out of the sale or sharing of your data, at any time clicking the “Do Not Sell or Share my Data” button at the bottom of the webpage. Please note that your preferences are browser specific. Use of our website and any of our services represents your acceptance of the use of cookies and consent to the practices described in our Privacy Notice and Terms and Conditions.
