Millions of UK savers are being warned they could be missing out on nearly a thousand pounds a year due to a simple financial habit: not moving their money. A stark new survey from investment and savings platform Hargreaves Lansdown has exposed widespread 'savings inertia' across the nation, with more than half of Britons leaving their cash languishing in poorly paying accounts.
The Scale of Savings Stagnation
The research, conducted in early 2026, found that 56% of people had not transferred any of their savings in the previous twelve months. The problem runs deeper, with a third of savers admitting they had not moved their funds in at least the last five years. Perhaps most startlingly, almost a quarter (25%) have never switched their savings account at all.
Sarah Coles, head of personal finance at Hargreaves Lansdown, labelled this inertia as "dangerous at times like this." She highlighted the volatile nature of the savings market in recent years, stating, "Over the last few years, savings rates have soared and then fallen, so it’s shocking that throughout it all, a third of people haven’t moved their savings at all over at least the past five years."
The Cost of Complacency
The financial penalty for this inaction is severe and quantifiable. Ms Coles explained that high street banking giants have been quick to cut their rates, creating a significant gap with the most competitive providers on the market. Currently, the top easy access savings accounts are offering around 4.5%, while the average branch-based account from a major high street bank pays a mere 1.15% on a £20,000 balance.
This disparity means a saver with £20,000 in a typical high street account is losing £688 in interest every year due to inertia. For the UK's highest-earning households, who hold an average of £29,898 in savings according to Hargreaves Lansdown's 2025 Barometer, the potential loss is even greater. The difference between the average high street rate and the best market rate would cost them a substantial £992 annually.
Breaking the Cycle and Finding Solutions
The survey indicates a deep-seated reluctance to engage with the savings market. Ms Coles noted, "The whole notion of switching is off the table for millions of people... two-fifths don’t have any plans to switch at any point in the future."
To combat this, she advises savers to be honest about their habits. "Some people will be able to keep track of a portfolio of accounts... Others start with good intentions but get overwhelmed," she said. For those who find managing multiple accounts challenging, she recommends considering a savings platform. These services allow users to monitor and switch between different bank accounts from a single dashboard, often without the need to complete fresh paperwork for each new account.
The clear message from the data is that in a dynamic interest rate environment, passive saving is an expensive choice. With hundreds, and in some cases nearly a thousand pounds, left on the table each year, reviewing and moving savings could provide a significant and effortless boost to household finances.
