Millions of households across the UK are being urged to take immediate action with their savings, as new research exposes a staggering amount of money languishing in accounts that pay no interest.
Billions Sitting Idle in Zero-Interest Accounts
According to a study conducted by Spring, which surveyed 2,000 adults, a substantial portion of British savers are missing out on significantly better returns. The analysis found that in 2025, an average of 6.5 million current accounts containing more than £10,000 were paying zero interest.
Perhaps more shockingly, these non-interest-bearing accounts held an average monthly balance of £35,000. Derek Sprawling, commenting on the findings, stated: "On average, over £315 billion was held in current accounts earning nothing in the UK last year, with £227 billion of that sitting in accounts holding £10,000 or more."
He emphasised the scale of the issue: "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."
The High Cost of Inaction for Savers
The financial impact of keeping large sums in a standard current account is severe. The research detailed the scale of larger deposits, noting that nearly 705,201 accounts held between £50,001 and £100,000, while a further 327,000 accounts contained more than £100,000 at the end of each month.
Sprawling broke down the annual losses: "If you're holding £50,000 or £100,000, the missed interest quickly tops £2,000 and £4,000." The report specified that someone with £50,000 is missing out on over £2,000 a year, and a person with £100,000 is losing more than £4,200 annually.
Making Your Money Work Harder
Experts are clear that a current account is designed for day-to-day spending, not for the long-term storage of substantial savings. Sprawling advised: "A simple switch to a competitive easy‐access savings account lets your money work harder while still staying within easy reach."
He addressed a common concern that prevents people from moving their money: "Many people don't move those funds because they don't want to lose access to it. However, 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 key takeaway for UK savers is to review where they hold their cash. With billions earning no return, a proactive move to a dedicated savings product could unlock significant extra income for households nationwide.
