A survey commissioned by banking provider Chase found that 24% of people leave money idle in current accounts at the end of the month rather than transferring it into a savings account. Among those, one in six leave more than £5,000 idle in their current account. Yorkshire Building Society estimates there’s around £411 billion sitting idle in current accounts. According to Laura Pomfret on BBC Morning Live, a recent study found that millions are sitting on decent sums of cash in their current accounts, but are earning next to no interest.
Men are particularly prone to leaving large sums of cash not earning interest in current accounts, according to the survey commissioned by Chase. More than 12 million current accounts in the UK are thought to be earning 1% or less in interest on balances above £5,001, a study by Yorkshire Building Society found. The exact demographic breakdown, such as age and income, of people leaving large sums idle in current accounts remains unclear.
With household budgets under pressure and financial stress rising, it's clear many are feeling the pinch. Yet millions are still missing out on easy wins – like earning interest on their savings.
More than half of respondents in a survey said they feel stressed about their finances. Nearly a quarter of respondents plan to use a credit card to cover the cost of expenses. Shaun Port, managing director for daily banking and savings at Chase, said consumers feel proud and motivated when they see their money moving in a positive way. Tina Hughes, director of savings at Yorkshire Building Society, noted that with household budgets under pressure and financial stress rising, it's clear many are feeling the pinch, yet millions are still missing out on easy wins like earning interest on their savings.
Around half of those borrowing expect to clear festive debt within three months, whilst a quarter anticipate taking up to a year, a survey found. Moving £1,000 from a current account to a saver paying 4% interest would yield £40 across a year, according to Laura Pomfret on BBC Morning Live. According to Daily Express - Finance, Laura Pomfret described how such savings could cover expenses like a grocery shop or a birthday present, calling it free money that is lost when left in current accounts. The specific interest rates currently offered by major banks for current accounts versus savings accounts are not detailed in the available data, and the impact of inflation on the real value of idle cash over specific time periods is also unknown.
Shaun Port emphasized that every pound you save should be working as hard as possible for you. According to Daily Express - Finance, Laura Pomfret described findings that one in six people questioned admitted to leaving over £5,000 in their current account, with billions sitting idle overall. The number of people who are aware of higher-interest savings options but choose not to use them is not specified, and the exact methodology and sample size of the Chase survey beyond the mention of 3,000 people across the UK remain unclear.