Warning issued to anyone with £10,000 in their savings account
New research has found that millions of Brits are missing out on hundreds of pounds in interest by leaving large sums of money sat idle in their current accounts
Millions of Brits are losing out on piles of cash annually due to a banking blunder – they're not moving large cash reserves from non-interest paying current accounts. Recent analysis has discovered around 8.3 million UK current accounts with balances over £10,000 are earning zero interest.
These dormant accounts collectively hold a whopping £284 billion, a sum that could accrue substantial interest if placed in high-interest savings. The data is brought to light by Spring, the latest savings app incorporating Open Banking tech to sync seamlessly with user's current bank accounts.
Spring boasts a 4.30% AER offer, beating typical high street banks' rates. Industry figures used by the app show every eleventh account holds an average of £33,961, and about 1.3 million of these have more than £50,000.
Spring is raising the alarm on the 'current account coasters' - those folks who let excess cash sit idly in their accounts instead of transferring to a savvier savings option.
Alarmingly, broader industry stats point to 74 million credit-positive current accounts that don't earn a penny in interest, reports the Express.
Derek Sprawling, Savings MD at Spring, said: "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."
He further stated: "Many people don't move those funds because they don't want to lose access to it but choosing a savings account that connects to a current account so you can transfer money in seconds and offers unlimited withdrawals, could provide a compelling alternative."
Spring's app - available on iOS and Android - allows users to apply within minutes and link their accounts for instant access to savings features, including separate pots and easy withdrawals. It requires no bank switch and promises to help people develop better savings habits with minimal effort.
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