New analysis has revealed that millions of households across the United Kingdom are missing out on significant sums of money by leaving large cash balances in bank accounts that pay no interest whatsoever.
Billions Left 'On the Table' in Zero-Interest Accounts
According to data from Spring, a staggering £315 billion was held in UK current accounts that earned no interest throughout 2025. Of this total, a massive £227 billion was held in accounts containing £10,000 or more.
The firm's research indicates that approximately 6.5 million zero-interest current accounts maintained balances exceeding £10,000 for the entire year. The typical month-end balance in these accounts was a substantial £35,000.
Spring's analysis shows that this inertia is costing savers dearly. Had the average account holder moved their £35,000 into a savings product offering a competitive 4.11 per cent interest rate, they could have earned roughly £1,500 in extra income over the year.
The High Cost of Inaction for Larger Savers
The potential losses escalate dramatically for those with higher balances. Individuals keeping £50,000 in a non-interest-bearing current account are forfeiting more than £2,000 in potential interest annually.
Perhaps more startling is the number of accounts holding very large sums. The data shows that 705,201 accounts contained between £50,001 and £100,000. Even more eye-watering, 327,000 accounts held average month-end balances surpassing £100,000.
For this group, the decision to leave funds in a standard current account means missing out on approximately £4,200 in interest every single year. In total, Spring warns that UK savers left nearly £10 billion 'on the table' last year alone.
Expert Urges Simple Switch to Make Money 'Work Harder'
Derek Sprawling of Spring commented on the findings, emphasising the mismatch between the purpose of a current account and how many are using it. "A current account is for day-to-day spending, not long-term storage," he said. "Yet millions of current accounts contained an average balance of £35,000 last year, which could have been earning significant returns."
He highlighted the cumulative impact, stating: "If you’re holding £50,000 or £100,000, the missed interest quickly tops £2,000 and £4,000."
Sprawling addressed a common barrier to moving money, noting that many people fear losing instant access to their funds. He offered a practical solution: "A simple switch to a competitive easy‑access savings account lets your money work harder while still staying within easy reach. 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."
The core message from the analysis is clear: with a vast array of easy-access savings options available, UK consumers holding substantial cash reserves in their everyday bank accounts are urged to review their arrangements to stop forfeiting hundreds or even thousands of pounds in potential growth each year.
