One in four have less than £250 in their current account

New research from The Current Account Switch Service has revealed that one in four (24%) UK adults have less than £250 in their current account. The data also shows a decline in those with higher balances in their current accounts, with a 15% decrease of those with over £2,500 since 2021.

A vast majority of respondents (77%) have less than one month’s salary (£3,120 in their accounts, and two-thirds (66%) have less than £1,500. The findings paint a stark picture for consumers, a third of which have less than £1,000 in savings, suggesting that millions are living between paychecks with minimal financial security.

On the higher end of the spectrum, nearly a quarter (23%) have over £2,500 sitting in a current account, potentially resulting in significant amounts of missed interest with savings accounts not being utilised.

The research finds that 66% of those with more than £15,000 in their account were men, and one-fifth (21%) are based in London. One in ten (11%) of this group have recently bought a home, more than double those outside of this group (4%). The largest age grouping within this subset was over 65s (33%), followed by 25-34 (20%).

John Dentry, Product Owner at Pay.uk said “While it’s important to avoid leaving large amounts in a low-interest current account, these figures reveal that many are living with minimal cash in their main accounts to get them through the month. Especially when considering millions do not have a substantial amount of savings, it paints a clear picture of the current economic climate.

“Whether you’ve got a large sum of money sitting in a current account, or are struggling to make ends meet and build up a rainy day fund, you should turn to your banking provider for help and see what they can offer. If you don’t feel that they can meet your needs, then don’t hesitate to switch. There’s plenty of great options on the market, and via the Current Account Switch Service, your switch is free, easy, and guaranteed.”