Billions of pounds are left in current accounts at the end of each month without earning any interest, research has found.
Despite consumers’ finances being on a knife edge, a study by Santander has revealed that many people are not taking advantage of the interest offered by some current accounts.
The study estimates that £130 billion is left over in current accounts at the end of each month, before the next month’s pay cheque is paid in.
Yet nearly half of those who have money left in their account at the end of the month – around 46% – are not earning any interest on their remaining balance.
This is due to the fact that a whopping eight out of 10 current accounts in the UK do not pay any interest at all.
The research found that 30% of Brits do not know how much their current account pays, something that experts are encouraging people to change.
“Our study shows that millions of people have money in their current account each month that could be earning interest. At a time where every penny counts, it’s important to ensure your cash is working for you,” said Hetal Parmar, Head of Banking at Santander.
With many consumers struggling to make bill payments each month, it’s more important than ever to boost the funds you have as much as possible.
Research by MoneySupermarket found recently that one in six British consumers has missed at least one bill payment in the last 12 months.
“With times being so tough for most UK households and spare cash being tight it is easy to see why people may have difficulty in paying bills on time, or in some cases at all,” said Kevin Mountford, head of banking at MoneySupermarket.com.
Responsible lenders offer unsecured personal loans which are available to give you access to the funds you may require. Of course, no such loan should be taken lightly, and as with any form of borrowing it is important that you are able to meet repayments.