Current account holders with Lloyds, NatWest, Santander, Nationwide, Barclays or HSBC could be missing out on cash. A warning has been issued following a survey which has revealed that around a third (34 per cent) of people with savings hold most of this money in a current account.
They could be missing out on better returns according to the study, BirminghamLive reports. The study, released to coincide with UK Savings Week 2023 this week, found that one in seven (15 per cent) adults have no savings at all.
A third (34 per cent ) of UK savers never compare the rate on their savings accounts to others available in the market said the research, which was commissioned by the Building Societies Association (BSA). Robin Fieth, chief executive of the BSA, said: "As savings rates have been increasing over recent months, shopping around can now make a sizeable difference to the returns available."
For those who do have savings, the average amount set aside is £21,840. The survey found that more than half (52 per cent) of people with money saved said they have less than £12,000.
Martin Lewis' Money Saving Expert said that a savings account is simply an account for you to put money in and earn interest. Those who are looking the best interest rate should look at Paragon Bank as Mr Lewis says it pays the top easy-access rate of 5.05 per cent (minimum deposit of £1,000).
There is one thing to note though. You can only make two withdrawals a year or the rate plummets, so this account will only work if you know you won't need regular access to your savings.
According to latest information, Kent Reliance pays a slightly lower 5.01 per cent (min £1,000) but allows unlimited withdrawals, so you can dip into your savings as many times as you like. If you have, or get, a Santander Edge current account, you can get seven per cent on up to £4,000, also with unlimited withdrawals. This beats the top rate savings account above (also from Santander).
Sign up for our daily newsletter here for all the latest news about Coventry.
