NEW YORK, December 30, 2025, 16:40 ET
- Yorkshire Building Society said more than 12 million UK current accounts hold £5,001 or more while paying 1% interest or less.
- The mutual said £5,000 moved into an easy-access savings account paying 4.76% would earn about £243 in interest over a year.
- Paragon Bank has said £526 billion is held in current and savings accounts earning little or no interest, costing consumers an estimated £20 billion a year in lost interest.
Yorkshire Building Society said new research shows more than 12 million UK current accounts hold balances of £5,001 or more while paying interest of 1% or less.
The warning lands as households look for ways to stretch budgets and reduce reliance on borrowing, with rates on some savings products far above what most current accounts pay.
For people holding spare cash, the cost of staying put can run into the hundreds of pounds a year, at a time when even small gains can offset everyday expenses.
The lender, a member-owned “building society” similar to a mutual bank, said its analysis drew on data from Caci’s current account database.
Yorkshire Building Society said the findings point to significant sums being left in low-return accounts, and that many account holders could boost returns by moving surplus cash into higher-rate savings products.
A current account — the UK term for a checking account — is designed for day-to-day spending and typically pays little or no interest.
Yorkshire Building Society said someone with £5,000 in an easy-access savings account paying 4.76% could earn about £243 in interest over a year, a level it said is not available in most current accounts.
The building society also pointed to signs that households are tightening spending, with respondents expecting to spend an average of £596 over the Christmas period, down from £774 a year earlier.
It said 15% of respondents expected to spend more than £1,000 on Christmas celebrations, compared with 51% the previous year.
The research found more than half of those surveyed reported feeling financially stressed, and nearly a quarter said they planned to use credit cards to cover Christmas costs.
Tina Hughes, director of savings at Yorkshire Building Society, said: “Christmas is usually a time of celebration, but this year many households are cutting back as budgets tighten.”
The push to shift idle cash comes as banks and building societies compete for deposits by offering higher savings rates, Yorkshire Building Society said.
Earlier this year, Paragon Bank — which launched the Spring savings app — said an estimated £526 billion was sitting in current and savings accounts earning little or no interest, translating into about £20 billion a year in lost interest for consumers.
