Financial experts warn that keeping large sums in a day-to-day account comes at a high cost.
Millions of Brits could be losing out on hundreds or even thousands of pounds every year (Image: Getty)
Millions of people across the UK are being warned they could be losing out on hundreds or even thousands of pounds in interest every year by leaving large sums of money in current accounts that pay no interest. New research shows that many households are storing far more cash than they realise in day-to-day accounts instead of moving it to savings accounts offering competitive rates.
According to analysis from Spring, the savings app that links directly to current accounts, an average of 6.5 million current accounts paying zero interest contained more than £10,000 in 2025. These accounts held an average balance of £35,000 at the end of each month, even though they earned nothing in return.
An average of 6.5 million current accounts paying zero interest contained more than £10,000 (Image: Getty)
If those balances had instead been placed in a savings account offering 4.11% interest, each account could have earned around £1,500 over the year.
Across all 6.5 million accounts, this adds up to £9.75 billion in missed interest.
Spring’s analysis also found that an average of £227 billion was sitting in current accounts with balances above £10,000 last year.
This represents 71% of all cash held in zero-interest current accounts, a total of £319.4 billion.
Some people are leaving much higher sums untouched. Nearly 705,201 accounts held between £50,001 and £100,000, while a further 327,000 accounts contained more than £100,000 at month end.
Based on the same 4.11% interest rate, someone with £50,000 is missing out on over £2,000 a year, and a person with £100,000 is losing more than £4,200 annually.
Many savers are failing to move their money because of habit or uncertainty (Image: Getty)
A survey of 2,000 adults by Spring shows many savers are failing to move their money because of habit or uncertainty.
More than a third of people (36%) keep their savings with the same bank as their current account, while 21% keep their savings in the current account itself.
Only 27% have placed their savings with a separate provider offering better rates.
When asked why they had not moved their money, 31% said it was simply down to habit, while 26% were worried about losing immediate access to their funds.
A quarter (25%) said they didn’t believe switching would make enough difference, and 17% admitted they were unsure what to do instead.
Derek Sprawling, the head of money at Spring, said: “On average, over £315 billion was held in current accounts earning nothing in the UK last year, £227 billion in accounts holding £10,000 or more.
“You would expect 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 more than 70% of the overall balance.”
He warned that keeping large sums in a day-to-day account comes at a high cost, saying: “A current account is for day-to-day spending, not long-term storage.
“Yet millions of current accounts contained an average balance of £35,000 last year, which could have been earning significant returns. If you’re holding £50,000 or £100,000, the missed interest quickly tops £2,000 and £4,000.
“A simple switch to a competitive easy-access savings account lets your money work harder while still staying within easy reach.”
Mr Sprawling added that many people are put off switching because they fear losing access to their money.
He explained: “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.”
