EditorSWANSEA: Almost one in five residents kept savings in current accounts — costing them hundreds in lost interest
Almost one in five people in Swansea kept their savings sitting in a current account rather than a higher-interest account last year — one of the highest rates in the UK and a habit that savings experts say is quietly costing people hundreds of pounds a year.
New analysis of banking data by Skipton Building Society found that 19% of Swansea residents were holding their cash in current accounts rather than moving it into interest-bearing accounts such as cash ISAs — placing the city fourth highest in the country for the trend, behind only Aberdeen, Worcester and York.
The national picture is stark. The analysis, based on CACI banking data from January 2026, found that 80 million current accounts across the UK sit at 0% interest, holding a combined £327 billion in cash. Moved into a savings account earning even a modest rate of interest, that money would collectively generate more than £14 billion extra a year for savers.
The ISA — Individual Savings Account — allows people to shelter up to £20,000 a year from tax on interest earned. The annual allowance resets each April, meaning any unused portion of last year’s allowance has now been permanently lost. For Swansea residents who spent 2025-26 with savings sitting in a current account earning nothing, the opportunity to shelter those returns tax-free has gone.
The trend is partly explained by a preference for easy access. A separate Skipton survey of 2,000 adults found that one in eight savers nationally is choosing current accounts specifically for their flexibility — keeping cash within arm’s reach in uncertain economic times. Younger savers are among those least likely to understand the tax advantages of ISAs, with 16% of Generation Z admitting they do not fully understand the benefits of using their annual allowance.
It is a pattern that resonates in Swansea, a city where household finances have faced sustained pressure in recent years from rising rents, energy costs and grocery bills. Keeping money liquid feels prudent — but the cost of doing so is harder to see because it shows up as interest never earned rather than money actively spent.
Alex Sitaras, head of savings at Skipton Building Society, said savers did not have to choose between flexibility and returns. He recommended keeping a portion of savings accessible for emergencies while moving longer-term savings into tax-efficient accounts, describing split saving strategies as a practical middle ground. He also urged people to review their savings arrangements regularly — pointing out that 12% of account holders in 2025 only checked their accounts once a year, often missing better rates that had emerged since they first opened them.
With the new tax year now under way, this year’s ISA allowance is a blank slate. The annual limit remains £20,000 — and for those who did not use last year’s, the new year is a fresh chance to make sure cash is working as hard as possible.
For first-time buyers, the Lifetime ISA remains particularly valuable — with the Government adding 25% to contributions made by eligible savers working towards a first home, up to a maximum bonus of £1,000 a year.
Whether in Swansea or anywhere else, the underlying message from the data is simple: money left in a current account earning nothing is money quietly losing ground to inflation — and in a city that ranks fourth in the country for the habit, there is a lot of it.
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