£1,668 warning issued to anyone with money in a current account

Savers are losing out on billions of pounds worth of interest on their savings by keeping all of their money in a current account. 7.7 million people hold their savings in current accounts offering little or no interest, causing UK savers to miss out on a combined £12.8billion.

New research from Atom Bank shows if £252billion were moved into current market-leading easy access savings accounts, an additional £12.8billionn in interest could be generated. It could mean an extra £1,668 a year, the Express reports.

Aileen Robertson, head of savings at Atom bank said: “Billions of pounds are sitting in accounts today gathering little but dust. People are busy and banking is boring, so it’s perhaps no surprise, but the only people profiting from this trend are bankers.”

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She added: “Moving your money to a decent savings provider can mean hundreds, even thousands, of extra pounds a year in your pocket. And it’s easy.” Ms Robertson added: “While the £12.8billion figure is staggering, this isn't just about numbers; it’s about people’s financial futures.

“I cannot stress this enough, loyalty to your bank can seriously harm your financial health. Instead of clinging to the familiar, we urge savers to take some time to shop around to ensure they aren’t being ripped off.” A savings account is most suitable for people who are salaried employees or have a monthly income, whereas, Current Accounts work best for traders and entrepreneurs who need to access their accounts frequently.

Savings accounts earn interest at a rate of around four per cent or even higher sometimes, while there is no such earning from a Current Account. A Current Account is actually a no interest-bearing deposit account. Current Accounts allow more frequent transactions than Savings Accounts.

Savings Accounts can earn interest, but Current Accounts typically don't offer this feature.