- Bank of England figures* published on Friday show there’s £303.83 billion in accounts making no interest at all – including current accounts.
- HL analysis shows this means we could be missing out on a collective £15.07 billion* in interest.
- 22% people have never switched savings accounts, 44% don’t know what they’re making on all their savings, and 40% have no plans to ever switch (Opinium survey for HL, September 2024).
*(not seasonally adjusted), published by the Building Societies Association on 3 January 2025, covering November 2024.
**based on the most competitive easy access account without a bonus, paying 4.85%. Savings rates as at 6 January 2025.
Sarah Coles, head of personal finance, Hargreaves Lansdown:
“We’re throwing away more than £15 billion in savings interest a year, because there’s £303.83 billion in accounts earning no interest at all. If we switched it into the leading easy access savings account (excluding bonuses), we could earn £15.07 billion in interest over the next year. It’s an eye-watering sum to be binning without a second thought.
The penalty for leaving savings languishing rose rapidly with savings interest rates, and although rates have fallen from the peak, the penalty has continued to climb, because the money gathering dust in these accounts has been gradually building. It’s up an eye-watering £49.78 billion since December 2023.
An awful lot of this money is sitting in easy access savings accounts and ISAs with high street banks. More than half of savers (52%) haven’t switched their savings in a year and more than one in five (22%) have never switched. Even if you tracked down a decent deal when you first opened the account, the longer you’ve had money in there, the less competitive it will tend to be. In some cases, the returns have dwindled to nothing. If you haven’t switched in a while it’s vital to check what you’re making and what’s available elsewhere. It’s worth considering online banks and cash savings platforms, where rates tend to be better than the high street giants.
Meanwhile, another huge chunk of cash is sitting in current accounts earning no interest at all from day one. The average (median) household has £3,328 languishing in current accounts, and the highest-earning 20% have an average of £9,864. We need some of this for essential spending, but at this level, there’s every chance we’re keeping way too much in these accounts. Managing our current accounts better could leave us hundreds of pounds better off a year.
If you struggle to keep on top of your savings, it’s also worth considering a cash savings platform, which lets you hold accounts with different banks, and see everything in one place. It makes it easier to keep an eye on interest rates, and to switch when something better comes along.
