Millions of Britons could have missed out on a staggering £1,000 this year by keeping their hard-earned cash in the wrong bank account.
With an astounding 13 million current accounts in the UK boasting balances over £5,001, and an average balance of £23,600, savers are losing out on lucrative interest.
An analysis by Yorkshire Building Society and CACI revealed that many UK bank account holders have been making costly financial missteps.
However, those who opened a Yorkshire Building Society Christmas Regular Saver in January may find themselves better prepared for the festive season, reports Birmingham Live.
This account, which matured at the end of October, allowed customers to save between £1 and £150 monthly, resulting in an average balance of £1,070 – providing a helpful buffer for typical festive expenses.
Chris Irwin, director of savings at Yorkshire Building Society, said: “The cost of Christmas, for many, is growing each year. We started the year highlighting that keeping large amounts of funds in low-paying current accounts has become a costly mistake for millions.”
“Despite the attention savings interest rates continue to have, it’s surprising that there continues to be such large pockets of people who are missing out on savings interest, which in turn could have easily covered the cost of the festive period for many.
“For those that don’t have savings that could generate additional income, starting a regular saver now would give shoppers a healthy sum to draw on for Christmas next year – without having to rely on credit.”
“We don’t want to tell people how to spend their hard-earned money but covering the cost of Christmas, for many, can be quite daunting and stressful.
“We recognise that many people need help and advice around financial wellbeing, so that they can navigate times when we know people tend to spend more, like the festive season without going into the red.
“Making some small changes to habits could easily cover the cost of next Christmas.”
