UK households have an average of £8,267 sitting in current accounts when it could be more, Hargreaves Lansdown has revealed.

According to the HL Savings & Resilience Barometer July 2023, households could for example make 4.93% with Shawbrook Bank, which over a year could leave them £417 better off. Furthermore, BoE figures show there’s £270bn in accounts making no interest at all – including current accounts.

For those on average incomes, the average household has £5,118 in current accounts, whereas for those fifth of people on the largest incomes, that rises to £16,661.

Those who calculate interest rates have an average of £8,526 in current accounts – and those who can’t have an average of £9,915. Those who understand inflation have an average of £8,747. Those who don’t have £9,915.

Hargreaves Lansdown head of personal finance, Sarah Coles, stated: “It seems that the more we know about our money, the less likely we are to leave the cash languishing. Those who can calculate interest rates are more likely to appreciate the cost of leaving money in their current account, so there’s a better chance of them switching some into savings. Meanwhile, those who understand inflation appreciate the full cost of leaving money somewhere it doesn’t earn any interest, so are less likely to have large sums in their current account.

“However, it also seems that the more cash we have, the more likely we are to be squandering the opportunity to make more of it. Higher earners have more in their current account. They’re also likely to have higher outgoings, so will keep more in these accounts to meet day-to-day costs. However, they may not need all of it, so it’s worth working out exactly what you need, and moving the rest.”

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