Millions of Brits are potentially missing out on hundreds of pounds extra income a year because their cash ISA savings are in accounts paying 1.50% or less, new analysis by Yorkshire Building Society and CACI has indicated.

There are close to five million instant access cash ISA accounts earning 1.50% or less in the UK, with the average balance of over £8,500.

Yorkshire Building Society’s analysis is in addition to that highlighted earlier in the year showing almost £400bn is being held in current and savings accounts earning 1% interest or less, meaning millions are losing out on additional income.

Research also completed by Yorkshire Building Society has suggested that 45% of Brits stated if they were given £400 with no catches they would save the money.

“It’s surprising to see such a large amount sitting in low paying ISA accounts after a period of significant increases to savings interest in the last two years,” said director of savings at Yorkshire Building Society, Chris Irwin. “This data follows on from our analysis earlier in the year calling for consumers to take time to review their finances.

“The start of a new financial year gives the perfect opportunity to review finances and make the switch from low paying accounts. Although we’ve seen the bank rate increase this analysis clearly shows that there are still many accounts which continue to pay low rates despite those increases.

“Its important savers take action and think about how they can make their hard-earned cash go as far as possible. Last year, our savings rates paid an average of 1.01% more than the market average rate so we are encouraging customers to review their savings and get the information they need to make sure they aren’t missing out.”

Finance expert at Moneyfacts, Rachel Springall, added: “This research emphasises why consumers need to regularly check the rate they earn against the market and not presume they are getting a decent return. It is wise to make a diary note to proactively review and switch existing ISA pots to keep their tax-free wrapper and chase better returns.

“Leaving cash ISAs unchecked or becoming apathetic can be costly, as savers may miss out on a better rate without realising it.”

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