Customers with £10,000 in savings are being urged to move their money or risk missing out on earning hundreds of pounds a year.
In the UK 8.3 million current accounts hold £10,000 or more but 80 per cent of these accounts pay no interest – meaning their money sits passively.
However, Spring, a savings app, has encouraged those looking to earn money through interest to move it into a savings account instead.
The company warned millions of people in the UK are ‘current account coasters’ – leaving their money in a main account after paying for essentials, rather than placing it in savings.
Derek Sprawling, Spring’s Managing Director of Savings, told The Express: ‘Cumulatively, nearly £400 billion is held in current account balances in the UK.
‘You would imagine that these would mainly consist of small balances, but our analysis shows that there are a significant number of accounts that contain sizeable funds, accounting for over half of the overall balance.
‘Most people sensibly maintain a small current account balance to cover emergency costs and everyday expenses, but leaving thousands of pounds in your current account means you will be missing out on hundreds of pounds in interest each year.
‘With nearly eight million current accounts containing significant balances, that money could work harder in a higher-paying savings account.’
File image: In the UK 8.3 million current accounts hold £10,000 or more but 80 per cent of these accounts pay no interest – meaning their money sits passively
He explained that many people are wary about using savings accounts because they can loose immediate access to their money.
But there are alternatives, which connect savings and current accounts together.
These allow money to be transferred between accounts immediately.
As well as unlimited withdrawals.
