Cookies on the Attwoods website

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the Attwoods website.

Open

Latest news

Explore insightful perspectives and expert advice on finance

Home |Latest news |£235 billion 'cash mountain' sitting in bank accounts with low interest rates

Latest news

Browse by category
Business News

£235 billion 'cash mountain' sitting in bank accounts with low interest rates

May 20 2024

£235 billion of cash is sitting in low interest bank accounts with rates of under 1%, according to the Bank of England.

The data shows that over a quarter of a trillion pounds is held in low interest bank accounts, although the figure is down £19 billion on the excessively high figures accumulated during the pandemic.

From 2008 to 2022 the level of cash sitting in low interest accounts increased by over £200 billion.

When the interest rates were last 5.25% there was just £33 billion in accounts that were not paying out interest, rising every year until 2017 when it dropped to almost £150 billion.

Laith Khalaf, Head of Investment Analysis at AJ Bell, said: 'A mountain of cash paying no interest to savers built up in the wake of the financial crisis as a result of low interest rates and bank funding schemes introduced by the Bank of England.

'Given the dramatic rise in interest rates over the last few years, one might have expected this cash mountain to crumble, but remarkably £253 billion still sits in accounts paying zero interest to households. This is money which is simply wasting away once the effect of inflation is taken into account.'

Here to help

Please complete the form below and our expert team will be in touch.

  • Contact details

    • *
    • *

  • What services are you interested in?

    • *

  • Message

    • *

  • Which location would you like to contact?

  • Communication

    • *Indicates a required fields.†At least one form of contact is required.

      By submitting this form, you agree that Attwoods can process your information in order to respond to your enquiry. For more information visit our Privacy Policy.

Bromsgrove
Bromsgrove

Attwoods is proudly based in the historic market town of Bromsgrove, Worcestershire

  • 182 Worcester Road
  • Bromsgrove
  • Worcestershire
  • B61 7AZ
Call us01527 874170
Learn more about BromsgroveGet in touch
Evesham
Evesham

Attwoods is proudly based in the picturesque town of Evesham, Worcestershire; nestled in the heart of the Vale of Evesham

  • 90-92 High Street
  • Evesham
  • Worcestershire
  • WR11 4EU
Call us01386 424388
Learn more about EveshamGet in touch
Pershore
Pershore

Attwoods is proudly based in the Georgian market town of Pershore, Worcestershire.

  • Perrott House
  • 17 Bridge Street
  • Pershore
  • Worcestershire
  • WR10 1AJ
Call us01386 554870
Learn more about PershoreGet in touch
  • Xero Logo
  • Gold Partner Logo
  • Sage
  • QuickBooks Platinum

The practices of Attwoods are carried on by Attwoods Accountants Limited, Attwoods Business Services Limited, Attwoods (Bromsgrove) Limited. Regulated for a range of investment business activities by the Association of Chartered Certified Accountants.