Millions of UK households have been told they are missing out on free cash to help ease cost of living pressures and make their lives easier. Customers with the major banks can secure payouts just by making a simple change.
Everyone is being encouraged to look around for the best savings account options, offering the highest interest rates and suitable for your circumstances. Millions of Brits leave their money sitting in low-interest accounts – or even current accounts. This means their cash generates hardly any interest and they effectively miss out on free cash.
For example, putting £5,000 into a 4% savings account and leaving it alone for a year would generate £200. The rise of online banks means there are plenty of options out there for savings with some currently offering rates above 5%.
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For those more comfortable with established names, high street banks also have a number of competitive options. Some will require savers to lock their money away so it’s important to find an account that’s right for your circumstances.
Chris Irwin, director of savings at Yorkshire Building Society, said: “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.”
Rachel Springall, finance expert at Moneyfactscompare.co.uk, added: “Savers may find it convenient to stash their cash in their current account, but the stark reality is that these do not work hard enough for them to earn decent interest, nor do they really offer the right structure to instil the savings habit. Consumers need to shake any apathy they have and take a step back to decide how their money could work harder for them.”