Millions of UK bank account holders could miss out on an extra New Year cash boost by not putting their cash in the right account, according to a new analysis. Nearly 13 million current accounts in the UK have balances over £5,001, and the average amount held is £23,600.
Research from Yorkshire Building Society and CACI indicates that Brits could have earned over £1,000 more this year. However, there’s no stress over seasonal spending for those with a Yorkshire Building Society Christmas Regular Saver, which matured at the end of October.
Customers were allowed to put away £1 to £150 monthly, achieving an average balance of £1,070 by maturity – enough to cover typical Christmas expenses.
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Chris Irwin, Director of Savings at Yorkshire Building Society, commented: “The cost of Christmas, for many, is growing each year. We started the year highlighting that keeping large amounts of funds in low-paying current accounts has become a costly mistake for millions.”
He added, “Despite the attention savings interest rates continue to have, it’s surprising that there continues to be such large pockets of people who are missing out on savings interest, which in turn could have easily covered the cost of the festive period for many. For those that don’t have savings that could generate additional income, starting a regular saver now would give shoppers a healthy sum to draw on for Christmas next year – without having to rely on credit.”
“We don’t want to tell people how to spend their hard-earned money but covering the cost of Christmas, for many, can be quite daunting and stressful. We recognise that many people need help and advice around financial wellbeing, so that they can navigate times when we know people tend to spend more, like the festive season without going into the red. Making some small changes to habits could easily cover the cost of next Christmas.”