The top 20% of savers could miss out on £1,222 in interest by not switching their savings account from a high street bank to the best on the market, Hargreaves Lansdown (HL) has revealed.

The firm’s latest survey found that 60% of savers haven’t switched accounts in the past year, while 30% haven’t changed their savings account provider in the past five years.

Furthermore, over one in five (22%) said they have never switched.

HL revealed that the average high street easy access account pays 1.6% interest a year, while the best on the market, which excludes those limited to small sums and those limited withdrawals, pays 4.87%.

If a saver had £20,000 in an average branch-based high street east access account, this could cost them £674 a year.

Furthermore, of the 20% of richest households which have an average of £36,276 in cash, the difference between the average rates from high street accounts and the best on the market could cost them £1,222 a year.

Head of personal finance at HL, Sarah Coles, said: "Falling savings rates have seen savings inertia build, so that three fifths of savers haven’t bothered switching savings accounts at all in the past year.

"Inertia always has something of a grip on the UK’s savers. It’s easy to feel that there’s enough to keep on top of in life, so switching your savings to make the most of your money feels like a step too far."

The financial services firm also said that while at working age, people should have emergency savings in an easy access account to cover three to six months’ of essential expenses, while for those in retirement, there should be enough to cover between one to three years.

HL added that it is "particularly worrying" that older people are less likely to switch for a better rate compared to their younger counterparts, with 37% of those aged 55 and over stating that they have not switched accounts for at least five years.

Furthermore, 44% said they have no plans to switch at any point in the future.

Coles concluded: "This is the time when switching accounts can be particularly valuable. If you were already with a high street giant that offered less to begin with, and is now cutting rates, the difference between the best rates on the market and a typical offering from the high street is stark, and there’s hundreds of pounds a year to be made from the switch."

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