Moving money to savings account at end of month ‘simple step’ to higher returns

A quarter (24%) of people leave money sitting in current accounts at the end of the month rather than moving it into a savings account, according to a survey.

Many current accounts pay zero or little interest, meaning people could be at risk of seeing inflation erode the real value of their cash.

One in six (17%) of this group leave more than £5,000 sitting in their current account, with men being particularly likely to leave big sums of cash not earning interest, according to the survey, commissioned by banking provider Chase.

Shaun Port, managing director for daily banking and savings at Chase, said: “Every pound you save should be working as hard as possible for you.

“Moving your money into a higher paying interest account is a simple step that can make a real difference – helping your savings grow faster and bringing your goals within reach.

“We know consumers feel proud and motivated when they see their money moving in a positive way.

“Compounding interest is a powerful tool that allows your savings to grow faster over time. The main advantage is that you earn interest not only on your original deposit but also on the interest that accumulates, creating a snowball effect.

“This means your money works harder for you, and even small amounts can grow significantly if left untouched. When you create a positive habit, consistency follows.”

Some 3,000 people across the UK were surveyed by Opinium in October.