Wokingham, Berkshire — New research from Yorkshire Building Society has revealed that millions of UK households are keeping large sums of money — including balances over £5,001 — in everyday current accounts that pay 1 per cent interest or less.
The findings suggest that as many as 12 million current accounts across the UK hold more than £5,001, despite the availability of higher-interest savings products elsewhere in the market. The research has been widely reported across national financial and consumer media.
Yorkshire Building Society said the figures highlight just how much “idle cash” remains in current accounts designed mainly for day-to-day spending rather than longer-term saving.
Billions Sitting Idle
Reports based on the research suggest that around £526 billion may currently be sitting in UK current accounts earning little or no interest.
Other key findings reported include:
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12 million current accounts hold more than £5,001
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These balances typically earn 1% interest or less
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The average UK current account balance is reported to be around £2,067
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Up to 29 million people may be collectively missing out on billions in interest each year
Consumer commentators say many households may simply be unaware of how little interest current accounts pay compared with dedicated savings products.
Derek Sprawling, savings expert at Paragon Bank, said some banks are failing to encourage savers to seek better returns.
“High street banks are offering little to no interest on savings while making it unnecessarily difficult to access better alternatives, resulting in the rise of current account coasters.”
Current Accounts vs Savings
Financial institutions emphasise that current accounts are intended mainly for paying bills and everyday spending, rather than holding large reserves of savings.
The Yorkshire Building Society research also reflects broader pressures on household finances, with some people preferring to keep cash instantly accessible during the ongoing cost-of-living squeeze.
Not Advice from MyWokingham
This article reports on external financial research and national media coverage only.
It does not offer financial advice or recommendations.
Anyone concerned about their personal finances should seek guidance appropriate to their own circumstances.
Helpful External Information
Readers who want to understand more about savings and banking can find general guidance here:
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MoneyHelper (UK Government-supported service)
https://www.moneyhelper.org.uk/ -
Financial Conduct Authority – consumer savings information
https://www.fca.org.uk/consumers/savings-investments -
Bank of England – interest rate and savings data
https://www.bankofengland.co.uk/statistics -
Which? Consumer guide to savings accounts
https://www.which.co.uk/
These links are provided for background reading only.
Official & Media References to the Research
🔗 Yorkshire Building Society issue warning as millions of Britons ‘missing out’ on savings interest (GB News — summarises the research, including that more than 12 million current accounts hold £5,001+ while paying low interest) GB News
👉 https://www.gbnews.com/money/yorkshire-building-society-savings-interest-2674836954
🔗 Analysis data referenced on savings left in low-interest accounts (Yorkshire Live Facebook post citing nearly 13 million current accounts above £5,001 based on the society’s data) Facebook
👉 https://www.facebook.com/yorkshirelive/posts/there-are-nearly-13m-current-accounts-held-in-the-uk-with-a-balance-of-over-5001/1107493494754932/
🔗 Earlier Yorkshire Building Society press release (2024) shows similar figures — nearly £366 billion sitting in low-interest accounts and nearly 13 million accounts above £5,001, based on the society’s research data with CACI’s database. YBS
👉 https://www.ybs.co.uk/w/brits-still-missing-out-on-366bn
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