Millions of Britons are losing out on billions of pounds worth of interest on their savings by keeping all of their money in a current account.
New research from Atom Bank reveals that 7.7 million people hold their savings in current accounts offering little or no interest, causing UK savers to miss out on a combined £12.8billion.
Data from the Financial Conduct Authority (FCA) suggests there is approximately £252billion stashed away in accounts paying no interest.
If that £252billion were moved into current market-leading easy access savings accounts, an additional £12.8billionn in interest could be generated.
For the 7.7 million people holding cash in current accounts, this could mean an extra £1,668 a year.
Aileen Robertson, head of savings at Atom bank said: “Billions of pounds are sitting in accounts today gathering little but dust.
“People are busy and banking is boring, so it’s perhaps no surprise, but the only people profiting from this trend are bankers.”
However, she noted: “Moving your money to a decent savings provider can mean hundreds, even thousands, of extra pounds a year in your pocket. And it’s easy.”
Ms Robertson added: “While the £12.8billion figure is staggering, this isn’t just about numbers; it’s about people’s financial futures.
“I cannot stress this enough, loyalty to your bank can seriously harm your financial health.
“Instead of clinging to the familiar, we urge savers to take some time to shop around to ensure they aren’t being ripped off.”
According to comparison site Moneyfactscompare, Atom Bank is currently offering the joint-top interest rate for easy access accounts with an Annual Equivalent Rate (AER) of 4.85%.
Interest is paid monthly and up to £100,000 can be invested overall. However, a lower interest rate of 3.25% will be applied in a month a withdrawal is made.
Principality Building Society joins Atom Bank with an AER of 4.85% on its Online Bonus Triple Access (Issue 4). Three withdrawals are permitted per year and interest is paid yearly.
