Over a third of don’t know how much interest their account earns

Over a third (35%) of people say they don’t know how much interest their current or savings account earns, according to research from savings app, Spring.

The findings come as the UK inflation rate jumped to 3.5% in April – the highest in more than a year – eating away at the potential savings of millions across the country. When asked how they manage and think about their money, a further third (33%) said they wouldn’t actively move cash into a savings account to help their money grow, while only a quarter (24%) said they completely feel confident in their ability to save for both the things they need and want.

In addition to the latest inflation spike, the research comes as the Bank of England has hinted at cutting interest rates later this year, which could see the savings value of money sitting in current accounts erode away. 

Commenting on the findings, Derek Sprawling, Spring Managing Director of Savings, said “The time for action is now. Leaving money in a low, or no interest current account and having it face up to the highest inflation rate in more than year is nonsensical. These findings show there are too many people who are not taking advantage of the available tools and resources that can support them to make their money grow seamlessly, with very simple steps. As the economy remains volatile, we encourage as many people as possible to take advantage of options such as easy-to-use savings accounts to do the hard work of growing their money for them.”