Warning issued to anyone with £3,000 or more in their bank account
A warning has been issued to anyone with more than £3,000 in their bank account. 13 million current accounts in the UK boast balances over £5,001, with an average of £23,600 - meaning many savers are missing out on interest.
Shawbrook Bank found one in four 55-to 68-year-olds have £3,000 tucked away in a current account, while nearly one in 10 are keeping over £9,000 in one. On £5,000 over two years, not switching could cost you more than £208 in lost interest - assuming rates remain unchanged.
Adam Thrower, head of savings at Shawbrook said: "It is shocking to see the level of deposits being held in current accounts. Doing this might seem like the easy option, but people could be throwing away hundreds of pounds a year. Current accounts, not designed for savings, typically pay low interest rates - or none at all.”
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“Understandably, people can be concerned about locking away their funds and this may be a reason they choose current accounts to store their wealth. However, if this is the case, they should consider easy access accounts, which now offer great rates of return while providing the flexibility savers desire.”
He added: “Alternatively, those with larger deposits could make use of tax efficient fixed rate ISAs potentially allowing the deposits to accumulate interest year on year.” Here is a list of the best regular savings accounts currently on offer for the week beginning January 27, 2025:
Principality BS - Eight per cent AER / 7.85 per cent Gross
The Co-operative Bank - Seven per cent AER/Gross
Principality BS - Seven per cent AER/Gross
Nationwide BS - 6.50 per cent AER/Gross
NatWest - 6.17 per cent AER / Six per cent Gross
Royal Bank of Scotland - 6.17 per cent AER / Six per cent Gross
West Brom BS - Six per cent AER/Gross
Market Harborough BS - Six per cent AER/Gross
TSB - Six per cent AER/Gross.
Principality BS - 5.60 per cent AER/Gross.
Here is a list of the best savings accounts on offer with a one-year fixed-rate interest rate attached for the week beginning January 27, 2025:
Vida Savings - 4.77 per cent AER/Gross
SmartSave - 4.75 per cent AER/Gross
GB Bank - 4.75 per cent AER/Gross
Close Brothers Savings - 4.75 per cent AER/Gross
DF Capital - 4.74 per cent AER/Gross
Tandem Bank - 4.65 per cent AER/Gross
MBNA - 4.65 per cent AER/Gross
Zopa - 4.65 per cent AER/Gross
Rova - 4.65 per cent AER/Gross
ICICI Bank - 4.65 per cent AER/4.57 per cent Gross