Savings warning: Britons with £10,000 in the bank urged to act now or risk losing £400

New analysis reveals that an astonishing 6.4 million UK current accounts contain balances of at least £10,000 whilst generating zero interest returns.

Data from Spring Savings indicates that amongst these, 323,000 accounts hold £100,000 or more.

George Sweeney from comparison website Finder said: "If you've got a large cash buffer sitting in one of these accounts, it will actually be losing value the longer it remains idle, due to the eroding rising prices."

He recommend transferring surplus funds into easy-access savings accounts or ISAs, which currently offer approximately 4 per cent interest rates.

Mr Sweeney suggests: "The smart move is to keep large cash balances in an easy-access cash Isa. You can put in up to £20,000 this financial year and next, before the limit drops for under 65s to £12,000 in April 2027."

Moving £10,000 into such accounts would generate roughly £400 annually.

Financial experts suggest maintaining approximately £1,000 in current accounts to cover regular bills and direct debit payments.

Andrew Hagger, who founded personal finance website MoneyComms, advises: "If you've always got a few thousand sitting in your bank once your bills have been paid, you would be better off by switching some into an easy access savings account."

Keeping substantial sums in current accounts proves costly as inflation steadily diminishes purchasing power. With inflation running at 3.6 per cent, money sitting idle loses value in real terms.

Mr Hagger describes these balances as "dead money," explaining: "Banks are happy for people to do this as it's free money they can lend out and make a nice return at the customer's expense."

Smaller amounts would still yield meaningful returns, with £7,000 producing £280 and £4,000 generating £160 over twelve months.

These accounts maintain flexibility whilst protecting savings from inflation's erosive effects.

Transferring funds between accounts has become increasingly straightforward with modern banking technology.

Mr Hagger notes: "If you have an online savings easy access account you can switch funds into your current account instantly in some cases and within 24 hours in most instances."

This accessibility removes traditional barriers to optimising savings whilst maintaining liquidity for unexpected expenses.

As 2026 approaches, Hagger offers timely advice: "Maybe make it your first New Years resolution for 2026 to make better use of that dead cash in your bank account."

With millions of pounds languishing in zero-interest accounts, even modest changes could deliver substantial benefits for UK savers.