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12 Million UK Current Accounts Over £5,001 Pay 1% or Less, Yorkshire Building Society Warns

New Yorkshire Building Society analysis links large low-interest balances to tighter budgets.

Overview

  • Yorkshire Building Society’s December 30 analysis finds more than 12 million current accounts with balances above £5,001 paying 1% or less in interest.
  • Among those accounts, the average balance is about £23,700, leaving substantial sums earning minimal returns.
  • Using CACI data, the society estimates households could have gained nearly £1,000 this year by shifting cash into higher-rate savings.
  • An Opinium survey for the society shows planned Christmas spending fell to £596 from £774 in 2024, with 55% reporting financial stress and 24% expecting to use credit cards.
  • Reports highlight better easy-access rates available, with examples near 4.76%, while earlier Paragon Bank research suggested about £526 billion sits in low- or no-interest current accounts.