Britons urged to take out high interest accounts as thousands 'missing out' on £4,700 savings boost

In a survey of those born between 1997 and 2012, 65 per cent of respondents admitted that they have not saved due to the cost of living crisis.

Some 13 per cent shared that they found paying off debts prevented them saving while an extra 13 per cent revealed that they did not want to do so.

Around 1.4 million Britons have been identified as "inactive savers" which means this group does not shop for the best interest rates on the market.

Those who are saving are putting away an average of £292 monthly which results in an average savings pot of £4,729.

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Bank customers have been able to enjoy competitive savings rates thanks to recent actions from the Bank of England.

Over the last two years, the central bank has raised the nation's base rate to as high as 5.25 per cent which has been passed onto accounts.

This has been carried out due to the impact of soaring inflation which reached to 11.1 per cent back in 2022.

However, with the consumer price index (CPI) rate easing to around the Bank's desired two per cent target, high street banks are expected to withdraw high interest accounts from the market.

Only 45 per cent of those polled by Yorkshire Building Society shared that they would feel confident with their savings knowledge.

Based on the high street lender's analysis, if an additional 800,000 "inactive savers" shopped for a better deal, an extra £175million in higher interest payments would be generated.

Chris Irwin, the director of savings at Yorkshire Building Society, urged younger people to get on top of their finances and find the best product which can benefit them.

He explained: “Despite a willingness to spend time looking after their finances, it is clear from this data that many young people are missing out when it comes to their savings.

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“Many also said they lack confidence to make important financial decisions, leading to large pockets of people who are missing out on significant savings interest. If we support and encourage these young adults to shop around now they could be getting a lot more back for their money, now and through their lifetimes.

"Keeping large amounts of funds in low paying current accounts has become a costly mistake for millions.

"It’s understandable to want to have money accessible for emergencies or even topping up everyday expenses, but with so many instant access savings accounts currently available in the market paying a much higher return, there has never been a better time to review the home of your savings.

“Reviewing finances and savings can sometimes be an afterthought, with other things in life taking priority, but UK Savings Week is a reminder to make the time to take a close look at your finances and how you could make small changes which make a big difference.”