Yorkshire and Clydesdale offer financial health check

Brits are just not making the most of their finances, says Yorkshire Bank. According to its research savers are missing out on £1.9 billion in interest.  Yorkshire Bank’s findings suggest that 22 per cent of Brits have no savings account and those that do would earn much more in interest by moving spare cash from a current account to a high interest savings account.

In addition, 84 per cent of those who have store cards have no idea what interest rate they are paying and 30 per cent of workers spend more than £100 each month on things they simply do not need. With so many people letting their finances get out of shape, Yorkshire Bank and sister Bank Clydesdale Bank are offering a free financial healthcheck at their branches.

The banks have offered some tips for getting finances in order in 2007. These include switching mortgage. Just one in six homeowners are checking to see that they are getting the best deal, and some (a 34 per cent increase) are going for offset mortgages to offset interest rate rises. Giving up smoking could save £1,820 a year for someone with a 20 a day habit. Investing that sum in a savings account linked to an offset mortgage account could reduce the interest to be paid and shave years off the mortgage term. Similarly, cutting down on alcohol could save more than £1,500 a year, if people drank half the suggested maximum.

The bank also suggests setting up savings accounts to make the most of the average of £316 a month sitting idle in current accounts. It’s also worth keeping an eye on spending, which 51 per cent of us fail to do. In fact, 14 per cent of us don’t even know how much is in our current account. Finally, getting rid of a high interest store card will also save money.