Britons are being urged to check in on their savings accounts as thousands are missing out on over £800 worth of interest.
New research from the Building Societies Association (BSA) as part of UK Savings Week has found that despite the significant rise in interest rates over the last two years, more than one in four adults (28 percent) still hold most of their savings in a current account paying no interest.
Additionally, around a third (31 percent) of savers never compare the rate on their savings accounts to others available in the market – potentially missing out on over £800 extra income a year.
According to BSA, older savers keep the most money in their current accounts, missing out on significant interest earnings. With average savings balances of about £25,000, Britons that fall into this category forgo around £1,200 in annual interest.
However, it’s not just older savers who are missing out. Younger adults are also forfeiting hundreds of pounds each year.
Those aged between 18 to 24 years are thought to be losing almost £400 (£382) of free money, which doubles to over £800 (£822) for 25 to 35-year-olds.
Andrew Gall, head of savings and economics at the Building Societies Association, commented: “It’s sad to see that so many people who have successfully managed to build a savings pot are missing out on several hundred pounds of interest a year. This additional money could make a big difference to how people enjoy their savings, providing them with greater financial resilience and helping them to reach their goals sooner.
“UK Savings Week is all about encouraging good savings habits. That’s not just about a good habit of putting money aside on a regular basis, it’s also regularly making sure they are working as hard as possible for you.”
He added: “There is a whopping £250billion sitting in zero percent accounts, money that could be providing an income.
“We want to show people of all ages that moving their savings is a straightforward and very rewarding process.”
For those looking for a new way to save some cash, we round up the top-rate savings accounts every week, from easy access to Cash ISAs.
