Opinium for Hargreaves Lansdown<\/a>, found 56 per cent of savers are putting money in accounts that give them absolutely nothing back \u2013 a 20 per cent rise from last year.<\/p>\n67 per cent of 18\u201334-year-olds admit to stashing savings in current accounts, rather than moving them to proper savings pots.<\/p>\n
81 per cent of higher-rate taxpayers and 83 per cent of investors are also making the same mistake.<\/p>\n
\u00a3297bn is currently held in accounts earning no interest \u2013 up by about a fifth in a year. \u00a33,365 is the average amount held in current accounts, rising to \u00a310,180 for the highest earners. \u00a3114 is what the average saver loses in spending power after one year at 3.5% inflation, or \u00a3344 for higher earners.<\/p>\n
Researchers calculated that if you had the average of \u00a33,365 savings in a current account, and inflation was running at 3.5%, after a year, your money would have the same buying power as \u00a33,251 today \u2013 so it would have lost \u00a3114 of spending power.<\/p>\n
But if you moved the cash to a competitive easy-access account, you could earn a return that\u2019s higher than inflation.<\/p>\n
Recommended reading:<\/strong><\/p>\nSarah Coles, personal finance boss at Hargreaves Lansdown, said: \u201cYou don\u2019t have to transfer cash from another account in order to spend it, you just spend as normal \u2013 and find yourself eating away at your savings.”<\/p>\n
Ms Coles said: \u201cWith inflation around 3.5%, a household holding \u00a33,365 in a zero-interest account would lose \u00a3114 in spending power in just one year.\u201d Those sitting on \u00a310,180 would lose \u00a3344 annually \u2013 and over five years, \u00a33,365 could shrink by \u00a3532.<\/p>\n
She added: \u201cThese sites let you track everything in one place \u2013 and snap up the best rates without drowning in paperwork.”<\/p>\n","protected":false},"excerpt":{"rendered":"A warning has been issued to bank customers who\u00a0risk losing more than \u00a3500. According to reports, millions of…\n","protected":false},"author":2,"featured_media":222736,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[68576,87916,51,87915,1700,25026,87917,16,15],"class_list":{"0":"post-222735","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bank-accounts","9":"tag-bank-customers","10":"tag-business","11":"tag-current-accounts","12":"tag-economy","13":"tag-hargreaves-lansdown","14":"tag-spending-power","15":"tag-uk","16":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114764029888075494","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/222735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=222735"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/222735\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/222736"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=222735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=222735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=222735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}