Savings expert gives alert to people with £10,000 in bank over £1,500 mistake | Personal Finance | Finance
Research from Spring, the savings app that connects directly to current accounts, has disclosed that Brits lost out on billions of pounds in interest payments last year by maintaining substantial balances in non-interest-bearing current accounts.
Spring’s examination of CACI (Consumer and demographic) data showed that an average of 6.5 million current accounts paying no interest held balances exceeding £10,000 in 2025, with the average balance in these accounts at the end of each month totalling £35,000.
Derek Sprawling, Head of Money at Spring, stated that if those balances were kept in a savings account yielding an interest of 4.11 per cent, it would have generated £1,500 in interest over the year, or £9.75 billion across up to the 6.5 million accounts.
Spring’s analysis revealed that an average of £227 billion was stored in current accounts with balances of more than £10,000 or more in 2025, equating to 71 per cent of the total value of cash held in current accounts earning zero interest (£319.4 billion).
While the average balance was £35,000, some consumers held significantly larger amounts in their current accounts – nearly three quarters of a million accounts (705,201) contained between £50,001 and £100,000, with 327,000 accounts on average holding more than £100,000 at the end of the month, reports the Daily Record.
Those with £50,000 are missing out on over £2,000 in interest, and those with over £100,000 are losing out on £4,200 annually, based on an alternative rate of 4.11 per cent.
Research conducted by Spring involving 2,000 adults has revealed that a substantial number of UK savers are missing out on better returns, with many leaving their funds in low-interest accounts owing to habit, apprehension and uncertainty.
The study demonstrates that more than a third of people (36%) maintain their savings with an account offered by their primary current account provider, whilst a fifth of those surveyed (21%) confessed to storing their savings in their current account itself. Just a quarter (27%) have chosen to transfer their savings to a different provider.
When questioned about their reluctance to relocate their funds, almost a third (31%) cited habit as the primary reason.
This was followed closely by just over a quarter (26%) who voiced concerns about losing instant access to their money.
A quarter (25%) of those polled indicated they didn’t think they would gain from transferring their savings to another institution, and just under a fifth (17%) were uncertain about alternative options for their funds.
Derek Sprawling commented: “On average, over £315 billion was held in current accounts earning nothing in the UK last year, £227 billion in accounts holding £10,000 or more. You would expect that these would mainly consist of small balances, but our analysis shows that there are a significant number of accounts that contain sizable funds, accounting for more than 70 per cent of the overall balance.
“A current account is for day-to-day spending, not long-term storage. Yet millions of current accounts contained an average balance of £35,000 last year, which could have been earning significant returns. If you’re holding £50,000 or £100,000, the missed interest quickly tops £2,000 and £4,000. A simple switch to a competitive easy‐access savings account lets your money work harder while still staying within easy reach.”
He further explained: “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.”
