Chris Irwin, Director of Savings at Yorkshire Building Society, discusses the amount UK savers currently have stored in low-paying interest accounts, and how switching to alternative options can help cover the cost of their festive spending next year.

Yorkshire Building Society's research suggests that the average person in the UK is planning to spend over £774 this year on all things Christmas, with over half (51%) of all respondents saying they would spend up to £1,000 on things such as gifts, food, decorations and entertaining.

Yet Brits could have had their Christmas covered had they moved their savings from a low- or no-interest paying current account. Analysis from Yorkshire Building Society and CACI suggests millions of Brits have missed out on over £1,000 extra income this year

In January the mutual and CACI shared data that there was £380bn held in accounts paying 1% or less., That figure has reduced, but only by 5% meaning there is still over £362bn sat in low paying accounts.

Chris Irwin, Director of Savings at Yorkshire Building Society, said:

The cost of Christmas, for many, is growing each year. We started the year highlighting that keeping large amounts of funds in low paying current accounts has become a costly mistake for millions. Despite the attention savings interest rates continue to have, it’s surprising that there continues to be such large pockets of people who are missing out on savings interest which in turn could have easily covered the cost of the festive period for many.

For those that don’t have savings that could generate additional income, starting a regular saver now would give shoppers a healthy sum to draw on for Christmas next year - without having to rely on credit.

We don’t want to tell people how to spend their hard-earned money but covering the cost of Christmas, for many, can be quite daunting and stressful. We recognise that many people need help and advice around financial wellbeing, so that they can navigate times when we know people tend to spend more, like the festive season without going into the red. Making some small changes to habits could easily cover the cost of next Christmas.

Full press release: Millions miss out on covering the cost of Christmas as £360billion still sits in low paying accounts

Media contact: pressoffice@ybs.co.uk