Brits could have avoided festive financial strain altogether by making one simple move
Brits could have avoided festive financial strain altogether by making one simple move
Yorkshire Building Society has warned over 12 million current accounts across the UK are believed to be offering 1% or less in interest on balances exceeding £5,001.
Tina Hughes, director of savings at Yorkshire Building Society, commented: ” Christmas is usually a time of celebration, but this year many households are cutting back as budgets tighten. The number of people planning to spend over £1,000 has fallen dramatically. With household budgets under pressure and financial stress rising, it’s clear many are feeling the pinch.”
“Yet millions are still missing out on easy wins – like earning interest on their savings . For many, that extra income could have easily covered the cost of Christmas, but for those without savings to fall back on, starting a regular saver now could mean a stress-free festive season next year – without relying on credit,” she said.
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Analysis from Yorkshire Building Society and CACI suggests that millions of Brits could have avoided festive financial strain altogether by making one simple move: switching savings from a low- or no-interest current account.
There are currently over 12 million current accounts in the UK paying 1% or less in interest with balances above £5,001, and among those, the average balance is a staggering £23,700.
The analysis shows that these households could have gained almost £1,000 in extra income this year by moving their money from non-interest-paying accounts into higher-interest accounts, which could have easily covered the cost of Christmas.
The picture is also brighter for over 13,000 savvy savers who opened a Yorkshire Building Society Christmas Regular Saver in January.
This account, which matured at the end of October, allowed customers to deposit between £1 and £150 per month and delivered average balances of £1,070.
The number of people planning to spend over £1,000 has plummeted from 51% in 2024 to just 15% this year, showing a dramatic shift in consumer behaviour.
Over half of respondents (55%) admit to feeling stressed about their finances, a 10% increase since 2023, and almost a quarter (24%) plan to use credit to cover the cost of Christmas.