UK savers are missing out on £12.5bn in interest by keeping cash in current accounts that pay little or no interest, Atom bank has found.

The app-only bank’s latest research revealed that 7.7 million Brits hold all of their savings in current accounts that pay little to no interest.

It also found that current accounts are the leading place where UK adults keep their savings, followed by easy access accounts held with their main bank or provider (16%). A further 13% opt for having a regular savings account.

Data from the Financial Conduct Authority has also suggested that £252bn is stashed away in accounts paying no interest.

The analysis also revealed that two fifths of Brits, equating to 15.9 million people, are unaware of the interest rate their bank offers on their savings.

Atom stated that "given the huge disparity between savings rates on offer from traditional banks and challengers", it suggests that millions of savers may not have taken advantage of rising interest rates over the last two years.

Head of savings at Atom bank, Aileen Robertson, said: "Billions of pounds are sitting in accounts today gathering little but dust. People are busy and banking is boring, so it’s perhaps no surprise, but the only people profiting from this trend are bankers."

Robertson added: "While the £12.5bn figure is staggering, this isn't just about numbers; it’s about people’s financial futures. I cannot stress this enough, loyalty to your bank can seriously harm your financial health. Instead of clinging to the familiar, we urge savers to take some time to shop around to ensure they aren’t being ripped off."

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