Brits miss out on £800m

Britons could earn £801 million more a year in interest by moving their surplus money to savings accounts or current accounts which earn more interest, claimed Sainsbury’s Bank.

According to the bank, there are £13.6 billion unused in low paying current accounts which could be earning better interest rates in higher yielding accounts.

Up to 19 million adults have surplus money – money which is untouched and left over at the end of every month – sitting in current accounts that only pay 0.1 per cent interest.

The study showed that 2.87 million people with current accounts with the UKs big four banks – Barclays, NatWest, HSBC and Lloyds TSB – have between £501 and £1,000 left over in their accounts at the end of the month.

Some 1.87 million have between £1,001 and £2,000 at the end of the month. Someone with £1,500 surplus could earn £88.50 by switching from a low interest account to an account paying six per cent, the bank said.

Sainsbury’s Bank head of savings Peter Wood, said: "Obviously, it is sensible to keep a surplus amount in your current account to ensure you don’t go overdrawn but many people have significant sums that they are not drawing upon. This money could be transferred to a high interest, easy access savings account or high paying current account that could earn them considerably more interest."