Savers missing out on hundreds of pounds in interest

Millions are losing out on substantial annual interest by leaving large amounts of money sitting in current accounts. New analysis reveals that 8.3 million current accounts in the UK hold

£10,000 or more, and a huge 80% of them pay no interest at all. In total, these accounts hold £284 billion, money that could be generating a significant return if transferred into

high-interest savings accounts. The data comes from Spring, a new savings app that utilises Open Banking technology to connect directly to customers' current accounts. It claims its

product offers 4.30% AER, significantly higher than the typical offerings from high street banks. The company discovered that one in 11 current accounts - based on CACI industry data - hold

balances averaging £33,961, with approximately 1.3 million accounts containing more than £50,000. Spring warns that millions of account holders are what it calls 'current account

coasters' - people who leave surplus money idle in their main account after bills and essentials are paid, rather than transferring it to a savings product. Further industry-wide data

shows 74 million current accounts that are in credit are earning no interest at all. Derek Sprawling, Spring’s 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’s app —

available on iOS and Android — allows users to apply within minutes and link their accounts for instant access to savings features, including separate pots and easy withdrawals. It requires

no bank switch and promises to help people develop better savings habits with minimal effort.