More than one million UK savers are leaving over £116 billion languishing in current accounts that pay no interest, missing out on thousands of pounds each year. Recent analysis by savings provider Spring found that 1.04 million current accounts held balances above £50,000 at the end of March 2026 and earned zero interest, with the typical balance standing at £111,537. This £116bn pot of idle cash sits in accounts that offer no return, while inflation erodes its spending power.
Banks typically pay little or no interest on current account deposits, yet they use these funds to lend at much higher rates—through mortgages, personal loans and credit cards. The gap between what they pay savers and charge borrowers has helped boost bank profits. Lloyds Banking Group reported pre-tax profits of £6.7bn for 2025, up 12%, while NatWest announced £7.7bn, a 25% increase. The cost of inaction for savers can be significant. According to the Bank of England's inflation calculator, something that cost £100 in 2016 now costs around £140. UK inflation currently sits at 2.8%, having peaked at 11.1% in October 2022.
“Explains why over a million UK savers are missing out on thousands in interest by leaving money in zero-interest current accounts.”
Meanwhile, savers willing to move their money can earn far better returns. Moneyfacts reports that the average easy-access savings account pays around 2.5%, while the average one-year fixed-rate account offers 4.23%. Based on the typical balance of £111,537 and the one-year fixed rate, a saver could earn approximately £4,700 per year—money that is instead being lost to inflation. Spring's survey found that 36% of people keep their savings with their main current account provider, and 21% leave savings sitting directly in their current account. Many are unaware of the missed returns, often due to habit or convenience.
Q: How much interest could I earn on £50,000 in a savings account? At the average one-year fixed rate of 4.23%, a £50,000 deposit would earn about £2,115 over 12 months, compared with zero in a non-interest current account. Even an easy-access account at 2.5% would yield roughly £1,250.
Q: Why don't banks pay interest on current accounts? Banks use current account deposits to fund lending at higher rates, generating profits. With little competition for current account savers, many banks have no incentive to offer interest, especially on larger balances that are unlikely to be moved.
Q: What should I do with large savings in a current account? Consider transferring excess cash to a savings account that pays interest. Compare easy-access or fixed-rate accounts online. Even if you need some liquidity, splitting between a current account and a savings account can earn you hundreds or thousands each year.
What happens next? The figures are likely to renew debate about whether banks are fulfilling their obligations to savers. With the cost of living still high and inflation above 2%, pressure may grow on banks to offer better rates or for regulators to act. For now, the onus remains on savers to shop around and switch.