UK households with savings accounts are being urged to take action to gain an extra £180 per year. Analysis by a major UK building society indicates that millions of savings accounts are not achieving the returns they could with a simple change.
Skipton Building Society Analysis
Analysis by Skipton Building Society (SBS) of data from consumer and market analysis firm CACI from January 2026 revealed that in the UK, 80 million savings accounts with a 0% interest rate hold a combined £327 billion. This equates to an approximate average of £4,075 per account per year. Skipton suggests that simply moving those savings to a top-paying account can make a noticeable difference, with £180 extra saved over the course of a year on average at today’s leading rates.
Understanding Savings Accounts
A savings account is a place to put money and earn interest. Savings interest is paid tax-free, and most savers will not pay tax on the interest they earn. Basic-rate taxpayers can earn £1,000 a year in interest tax-free, and higher-rate taxpayers £500, thanks to the personal savings allowance. As rates have risen, you would need around £20,000 in savings to reach this allowance and soon have to pay tax as a basic-rate taxpayer. If nearing this limit, a cash ISA is worth considering, as interest on these is always tax-free.
Expert Advice
Alex Sitaras, head of savings at Skipton Building Society, explained what savers should do to make their money work harder after the Consumer Prices Index (CPI) increased by 3.3%. “A zero-interest account may feel risk-free, but with inflation rising, it actually guarantees a loss of spending power,” he said. “In a fast-changing economic environment, it’s also important to regularly review your savings options.”
In 2025, 12% of account holders only checked their accounts yearly to ensure they were getting the best rates. “What worked in the past might not reflect what you need now, and a quick review of the different types of ISAs available can help ensure you’re getting the most out of your allowance,” Sitaras added.
