A major UK building society has issued a warning to savers with an average balance of £4,087, revealing that one in three people is experiencing what it calls a “money-moving paralysis.” Research by Skipton Building Society indicates that many are failing to switch their savings to higher-interest accounts, missing out on significant potential earnings.
Key Findings from Skipton’s Research
The study found that 22 percent of savers think switching savings accounts feels like too much effort. Based on the mutual’s analysis, 80 million accounts earning 0 percent interest hold a combined £327 billion, reflecting an average balance of £4,087. If this balance were moved into a top-paying savings account offering 5 percent interest AER, savers would pocket an extra estimated £209 after one year.
Alex Sitaras, head of savings at Skipton Building Society, commented: “Millions of people are going backwards financially by leaving savings in accounts paying less than inflation. Vast amounts of cash are losing value in real terms while sitting untouched. If moving money feels overwhelming, start by checking what interest rate your savings are earning right now.”
Start Small: Focus on One Pot of Money
Mr. Sitaras added: “You don’t have to overhaul everything at once. If moving and reviewing money feels exhausting, focus on just one pot of money – whether that’s savings, current accounts or investments. Taking a single action is more effective than waiting for the perfect time to start.”
He also noted that one in ten savers never check their interest rate, so awareness alone is often enough to unlock the next step.
Adapting to Seasonal Priorities
With higher costs around holidays, weddings and school holidays coming in during the next few months, Mr. Sitaras advised: “What worked over winter bills may not suit spring and summer priorities. If you need more support with those higher costs, it may be worth keeping some savings in an easy access account, while checking where the rest of your money could be earning a higher rate to support those plans.”
He emphasized: “A quick check in can help you spot any savings that are sitting there earning little to nothing. Bringing it all back into one place will help you have better visibility or give you the option to move into something more competitive to give finances an overall boost.”
Overcoming Fear and Confusion
Mr. Sitaras acknowledged the emotional barriers: “What we’re seeing is a mix of frustration, confusion and, for some, real concern about making the wrong move. Speaking to an expert can help cut through that. Even a short conversation can give you a clearer picture of what the options are and build confidence around the next step.”
He concluded: “Start by getting comfortable with the fundamentals: what your money is doing now, what different accounts mean, and how that might work for you.”
