Banking news
Taking a vested interest
3 July, 2007
If Brits took time out stop and think about their savings, shopping around and switching to a high earning savings account would collectively save millions each year
Research has revealed that as many as 19 million adults in the Uk have surplus money sitting in current accounts that only pay 0.1 per cent interest.
Transferring this money over to a higher earning savings account of around 6 per cent AER could allow these Brits to realise a massive £801million extra each year
Also revealed by the research is that 2.87 million people holding standard fee-free current accounts with one of the UK ‘big four’ banks regularly leave £501-£1,000 sitting idle at the end of each month, with another 1.78 million leaving a sum of £1,001-£2,000. This might not seem like a trivial sum as far as generating a little extra interest goes, however someone leaving £1,500 just sitting in their account could earn £88.50 extra in one year in a 6 per cent account.
Peter Wood, head of savings at Sainsbury’s Bank, reflected on these findings: “Our research indicates that there are millions of people who could be making their money work harder for them. Obviously, it is sensible to keep a surplus amount in your current account to ensure you don’t go overdrawn but many people have significant sums that they are not drawing upon. This money could be transferred to a high interest, easy access savings account or high paying current account that could earn them considerably more interest.”
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