• Over a quarter (28%) of UK adults hold most of their savings in a current account 

• Savings interest can now make a sizeable difference to an individual’s savings pots 

• Those aged 65+ are missing the most interest – around £100 a month

• Even younger savers are losing hundreds of pounds of free money

New research from the Building Societies Association (BSA) as part of UK Savings Week has found that despite the significant rise in interest rates over the last two years, more than one in four adults (28%) still hold most of their savings in a current account paying no interest.

Around a third (31%) of savers never compare the rate on their savings accounts to others available in the market – potentially missing out on over £800 extra income a year. 

It is older savers (aged 65+) who hold the most savings in their current account and who are therefore sacrificing the most interest.  With average savings balances of around £25,000 they are missing out on around £1,200 in annual savings interest.

However, it’s not just older savers who are missing out.  Younger adults are also forfeiting hundreds of pounds each year. Those aged between 18-24 years are losing almost £400 (£382) of free money, which doubles to over £800 (£822) for 25-35 year olds. 

The research also found that it is younger savers who are the most likely to keep their savings in their current account. Around half (47%) of 18-24 year olds do this, compared to one in five (21%) 55-64 year olds. 

Andrew Gall, Head of Savings and Economics at the Building Societies Association, commented: 

“It’s sad to see that so many people who have successfully managed to build a savings pot are missing out on several hundred pounds of interest a year. This additional money could make a big difference to how people enjoy their savings, providing them with greater financial resilience and helping them to reach their goals sooner.

“UK Savings Week is all about encouraging good savings habits. That’s not just about a good habit of putting money aside on a regular basis, it’s also regularly making sure they are working as hard as possible for you.

“There is a whopping £250 billion sitting in 0% accounts, money that could be providing an income. We want to show people of all ages that moving their savings is a straightforward and very rewarding process.”

-ENDS-

Case Studies
We have a number of case studies of savers available, please get in touch if you would be interested in speaking to any.

About the Research
This research was conducted by Opinium, on behalf of the Building Societies Association. They surveyed 2,000 UK adults aged 18+ online between 24-28 May and 6-9 August. The results have been weighted to be nationally representative.

About UK Savings Week - 9-15 September 2024
UK Savings Week is a Building Societies Association led campaign with a clear social purpose of getting people engaged in saving, whether that is people who don’t have any savings to fall back on in an emergency, or people who have some savings but which could be working harder for them. 
It’s a sad fact that 14 million people in the UK have less than £100 in savings. There is also more than £250 billion in accounts that that do not pay any interest. UK Savings Week has two key ambitions:

1. To create 2 million new regular savers by 2030

2. To move £50 billion from 0% accounts by 2030

About BSA
The Building Societies Association (BSA) represents all 42 building societies, as well as 7 of the larger credit unions. Building societies serve around 26 million consumers across the UK and have total assets of over £507 billion. 

Together with their subsidiaries, they are helping over 3.5 million families and individuals to buy a home with mortgages totalling over £375 billion, representing 23% of total mortgage balances outstanding in the UK. They are also helping over 23 million people build their financial resilience, holding over £370 billion of retail savings, accounting for 19% of all cash savings in the UK.  Within this, societies account for 40% of all cash ISA balances.

With all of their headquarters outside London, building societies employ around 51,500 full and part-time staff.  In addition to digital services they operate through approximately 1,300 branches, holding a 28% share of branches across the UK.