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UK Savers Urged to Move Spare Cash as Low-Rate Accounts Cost £1,000+ a Year

Higher savings rates now make inertia with cash far more expensive.

Overview

  • Research from the Building Societies Association says 34% keep savings in current accounts, missing about £1,136 in yearly interest.
  • LHV Bank estimates a saver with £20,000 could earn £1,661 more over five years by moving from a 2.54% account to 4%, thanks to compounding.
  • Spring reports more than six million adults hold £10,000 or more in current accounts, leaving large sums idle on low rates.
  • Money guides advise using current accounts only for bills and income and putting extra cash into higher-rate or easy-access savings that still allow quick withdrawals.
  • LHV also highlights a loyalty penalty, with many on 1% or less and a gap worth roughly £28 a month on £20,000 if they do not switch.