Some 8.3 million current accounts contain balances of £10,000 or more with the majority earning zero interest.
Over eight million current accounts in the UK contain balances of more than £10,000, the majority of which are generating zero interest, analysis by Spring, the savings app that links directly to current accounts to deliver better returns, has uncovered.
Spring’s analysis of CACI data shows that 8.3 million current accounts contain £10,000 or above, representing one in 11 current accounts in the UK, with a total of £284 billion sitting in these accounts and an average account balance of £33,961. Of these accounts, 1.3m contained balances of more than £50,000.
Of the 8.3 million accounts, 80 per cent – or 6.6m – earn zero interest, meaning that people are missing out on significant levels of interest by not moving their money to a higher-paying savings account.
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More broadly, further analysis of CACI data shows that 74 million current accounts in credit are earning no interest at all.
Spring research showed that over 29m people, or 55 per cent of the adult population, could be classed as ‘current account coasters’ by leaving money after bills and expenses in their current account.
Spring provides a simple solution. Built using Open Banking technology, Spring connects to a customer’s existing current account in seconds and offers 4.30 per cent AER. It provides a genuine easy access savings account, enabling seamless transfers between accounts, while allowing customers to withdraw money when they need it.
Spring puts users in full control of their savings and offers features such as savings pots, all without the need to switch banks. It serves as a helpful savings companion, building better savings habits and making money work harder.
Derek Sprawling, Spring Managing Director of Savings, 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 added: “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 is available for download on both iOS and Android via the Apple App Store and in Google Play, and customers can apply for an account via the app in minutes.
For more information, visit the website here.
