More than one million people in the UK are collectively missing out on billions of pounds in interest – simply because their money is sitting in a current account that pays nothing.
At the end of March 2026, there were 1.04 million current accounts in the UK that held a balance of over £50,000 but earned zero interest, according to analysis by savings provider Spring. A total of £116 billion was languishing in these accounts. The typical balance stood at £111,537. Many people don't realise they could be earning hundreds or even thousands of pounds a year by moving their cash into a savings account that pays interest.
“Over a million UK savers are missing out on up to £4,700 a year by keeping cash in zero-interest accounts.”
The problem stems from the way high street banks treat current accounts. While many offer little or no interest on balances, they use those deposits to fund loans, mortgages and credit cards – charging customers far higher rates for borrowing. This gap between what banks pay savers and what they charge borrowers has helped drive large profits. Lloyds Banking Group reported pre-tax profits of £6.7 billion for 2025, up 12% on the previous year. NatWest made £7.7 billion, a rise of 25%.
For the average UK saver, the cost of leaving money in a zero-interest account is significant. Spring's analysis, based on data from consumer insights company Caci, found that 87% of the UK's 91 million current accounts in credit offered no interest at all. Using the average balance of £111,537 and the average one-year fixed savings rate of 4.23%, savers are missing out on around £4,700 a year. Even the average easy-access savings account pays about 2.5% – far more than nothing.
Why do people leave so much cash in accounts that earn nothing? Habit and convenience are the main reasons. Spring's survey found that 36% of people keep their savings with their main current account provider, while 21% leave savings sitting directly in their current account. Derek Sprawling, head of money at Spring, said: "Often, it comes down to convenience or habit, but with balances of £50,000 or more, the missed returns can be significant." Many people are also put off by the perceived hassle of switching accounts or are confused about which products offer the best rates.
Q: How much interest could I earn if I moved my money? If you have £50,000 in a current account earning 0%, moving it to an easy-access account paying 2.5% would earn you £1,250 a year. A one-year fixed-rate account at 4.23% would earn £2,115. The missed return for someone with the average £111,537 balance is about £4,700 a year at the one-year fixed rate.
Q: What’s the difference between a current account and a savings account? Current accounts are designed for everyday spending, with easy access to your money via a debit card or direct debits. They often pay little or no interest. Savings accounts are designed to hold money you don't need immediately and typically pay interest, though rates vary. Some have restrictions on withdrawals.
Q: Is my money safe in a savings account? Yes, up to £85,000 per person per financial institution is protected by the Financial Services Compensation Scheme (FSCS). This means if the bank goes bust, you'll get your money back.
Despite rising profits at the biggest banks, there is no sign that they will start offering competitive interest on current accounts. Inflation currently sits at 2.8%, down from a peak of 11.1% in October 2022, meaning cash left in a zero-interest account loses value in real terms over time. The Bank of England's inflation calculator shows that something costing £100 in 2016 now costs around £140. The best way to protect your savings is to shop around for the highest interest rates and move money that you don't need for day-to-day spending into a savings account or fixed-rate bond.