Tanyel Mustafa
Published November 23, 2025 9:00am
Share this article via whatsappShare this article via xCopy the link to this article.Link is copiedShare this article via facebook
Comment now
Comments
Are you losing money (Picture: Getty Images)
Listen to article
Listen to article
Your browser does not support the audio element.
Do you get paid into your current account and then just let the money sit there? You’re losing value on your cash if so.
New data shows that in the UK, 6.4 million current accounts contain £10,000 or over – which means all that money is earning no interest. But even if you have less than £10,000 in savings, that doesn’t mean you should stop reading.
Experts say that if you have more than £1,000 in your current account, you may as well be choosing to lose cash. Only 0.04% of current accounts beat inflation by earning 4% or over – most do absolutely nothing, meaning the value of your money drops.
Derek Sprawling, head of money at Spring, who is behind this data, tells Metro: ‘A current account should be seen as a tool for everyday spending, not a place to store large sums of money long-term.
‘Think of your current account as your digital wallet – designed for convenience, not storage. You wouldn’t carry £2,500 in cash to the supermarket, so why leave it idle in a current account? Treat it as a flow-through space for your money, not a destination.
Ideally, you want to keep between £500 and £1,000 in your current account, which Derek describes as a sensible amount to cover regular bills and a buffer for unexpected expenses.
‘Anything beyond that could be working harder for you elsewhere. With interest rates on many current accounts sitting well below inflation, excess funds are losing value in real terms,’ he says.
Remind me...what does inflation mean?
Inflation refers to a general rise in the level of prices. The opposite is deflation, a general fall in the price level.
If the cost of a £1 bag of flour rises by 5p, then flour inflation is 5%. It applies to services too, like getting your hair cut.
You may not notice low levels of inflation from month to month, but in the long term, these price rises can have a big impact on how much you can buy with your money.
Rising inflation is one reason why some savers might wish to turn to investment, as the returns from putting money into the stock exchange are traditionally more likely to match rising prices than the returns from cash savings.
Find out more here.
To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
Up Next
Previous Page Next PageIf this isn’t clicking, Sprawling breaks it down. Inflation is currently at 3.8%, so £10,000 held in a no-interest current account could lose around £380 in real value over a year.
‘That’s the hidden cost of inaction. If your money isn’t earning at least the rate of inflation, it’s effectively shrinking. Switching to accounts offering higher returns is key to preserving purchasing power,’ he says.
‘I encourage savers to shop around and find the best rate that works for you but also take into account your needs.
‘If you want an account that enables you to access your funds within minutes, not days, do your research and check the Terms and Conditions of different accounts; not all “easy access” is as easy as you might presume.’
If you don’t want your money to be locked into a savings account with lots of strings attached as to how often you can withdraw, don’t worry, because there are plenty of savings accounts that let you take out and put in as often as you like – you just have to do some comparing to find the best one for you.
More Trending
-
Here's how much your bills will go up after the energy price cap increases
Channel: UK UK 2 days ago By Brooke Davies - I asked the universe to make me rich — now I earn up to £20,000 per month
- Tesco Bank customers urged to remove money as popular Clubcard account axed
- Trick your brain into spending less with this ‘reserve budgeting’ money hack
As for your current account, Derek recommends doing a weekly review of the money in there.
‘Weekly budgeting works well for many people – it helps maintain control and prevents overspending,’ he says. ‘Topping up your current account in line with your spending habits ensures you’re not leaving large sums exposed to inflation.
‘The key is to be intentional: know what you need, keep that amount accessible, and move the rest to an account that rewards you for saving.’
That way, your current account is essentially just a digital wallet – not a money pit losing value by the month.
Deals of the Day
The sell-out suitcase that means you'll never be left with stale clothes again
Breakdown drama? There’s an app for that – and it gets you help in minutes
Pack 60% more with these cubes that sell every 2 mins – and travel smarter, not heavier
Shoppers say 'after 1 week, skin looks brighter, hydrated and glowy' as moisturiser works
Sick of shaving? This at-home device will save you hundreds on hair removal
Arrow MORE: Here’s how much your bills will go up after the energy price cap increases
Arrow MORE: I asked the universe to make me rich — now I earn up to £20,000 per month
Arrow MORE: Tesco Bank customers urged to remove money as popular Clubcard account axed
Comment now Comments Add Metro as a Preferred Source on Google Add as preferred source The SliceYour free newsletter guide to the best London has on offer, from drinks deals to restaurant reviews.
Postcode ? DOB ? Email I agree to receive newsletters from Metro I agree to receive newsletters from Metro Sign UpSign UpThis site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Your information will be used in line with our Privacy Policy
