Yorkshire Building Society warns customers who have £5,000 in current account

Yorkshire Building Society says customers can boost their income by a whopping £1,000. Yorkshire Building Society has issued a warning as millions of UK savings account holders are "missing out" on £1,000 in savings interest.

Over £366billion is still sitting in UK current and savings accounts and only earning returns of one per cent or less, according to analysis carried out by the building society and CACI.

There are 13 million current accounts in the UK with a balance of over £5,001 with the average held in these accounts standing at £23,700. If account holders switched to Yorkshire Building Society's Easy Access Saver with 4.80 per cent interest rate, they would earn an extra £1,141 in extra income.

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Chris Irwin, the director of savings at Yorkshire Building Society, explained: “Despite the attention savings interest rates continue to have following the significant increases in the bank rate, it’s surprising that there continues to be such large pockets of people who are significantly missing out on savings interest.

"We started the year highlighting that keeping large amounts of funds in low paying current accounts has become a costly mistake for millions. It’s encouraging to see that for a small number of people they have made moves to improve the situation however there is still an incredible amount of money not earning returns like they could be.

"It’s understandable to want to have money accessible for emergencies or even topping up everyday expenses, but with so many instant access savings accounts currently still available in the market paying much higher returns, access requirements shouldn’t be a barrier to attaining higher rates."

Rachel Springall, finance expert at Moneyfactscompare.co.uk, added: “Consumers will have different reasons for why they save and how, but it is essential they check that their account is paying a decent return of interest on their hard-earned cash.

"Loyalty does not always pay and the convenience of stashing cash in a current account means many savers are getting little to no interest. Interest rates have changed considerably over the past 12 months but if someone does not proactively switch, they could be losing money in real terms due to inflation.

"It’s quick and easy to switch accounts to chase a better return of interest, but some may feel it’s not worth doing if their priorities are focused on using their savings to cover the cost of living.”