Millions of people missing out on the chance to make extra cash

Experts are alerting millions of households to the chance to make extra cash for free. It all depends on what type of savings account they use.

Millions of customers with the big banks like Nationwide, Lloyds and NatWest stick with the same savings accounts for years despite them offering low levels of interest.

It means their savings grow at a slower rate than they would with a better account and they effectively miss out on free money in terms of interest payments

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Households wanting to make some extra money are encouraged to look for the best offers on the market, both from traditional high street banks and online competitors which often offer better deals.

Better accounts may be available from your existing bank.

Experts generally say any account with an interest rate under 3% is worth ditching.

Adam French, consumer finance expert at NerdWallet UK, said: “There are several easy-access savings accounts available paying between 4% and 5% interest.

“Plus the best regular savings accounts, into which you can save smaller amounts each month, are paying between 6% and 8%.

“Some of the best current accounts may also pay cashback on your spending or allow you to earn interest on your money.

“Taking 15 minutes to find a better bank account could leave you £100s better off.

“Our research found that the average UK adult is aiming to save around £10,000 this year which could be worth around £300 less by this time next year – in real terms.

“Instead, sticking those funds in one of the best savings accounts, which are currently paying almost 5% interest, could put £200 or more back in your pocket.”