34% of savers have no idea what interest rate they are earning on their cash, rising to 62% among those holding their savings in a current account.
Among those who do know their rate, only 35% believe that it is beating inflation, 28% think that it is falling short, and 17% don’t know either way.
40% of savers have no plans to switch to a better deal, with 20% of those saying that switching is too much hassle.
The average return across the UK’s four biggest banks is just 0.95% – well below the 2.6% rate of inflation in the year to June 2026.
Switching from a low-paying account could earn more than four times as much interest: on £20,000, a difference of around £600 a year.
The cost of not knowing
More than a third of savers have no idea what interest rate they’re earning on their cash, according to new research from Hargreaves Lansdown*, leaving millions at risk of losing money in real terms without realising it.
The polling shows that 34% of savers don’t know what interest rate that they’re earning on their savings, and this rises to 62% among those holding savings in a current account. Of those who say that they know their rate, only 35% believe that it is higher than inflation, 28% think that it falls short, and 17% don’t know either way. Even 29% of the more engaged savers who have taken the extra step to move their cash into a dedicated savings account aren’t paying attention to the interest rate that they’re getting. This could prove costly.
Take a saver with £20,000 in an easy access account. The UK's four biggest banks are paying an average of just 0.95%, yet the most competitive accounts pay four times that amount. Over a year, that gap is worth about £600 in lost interest**, and with inflation at 2.6%, the big‑bank saver actually loses £330 in spending power. Through HL's Active Savings, the same £20,000 would have earned £807 – a £287 real‑terms gain***.
Inertia proves a major barrier
Four in ten savers say that they have no plans to switch to a better deal. Of those, a fifth say that it is too much hassle, more than one in 10 admit that they know they should move their money but can’t be bothered, 7% don’t know what to look for, and 6% say that they don’t have the time.
Yet the choice is there: almost 2,000 savings accounts beat inflation in July, up from around 1,300 a year earlier, according to Moneyfacts.
And switching doesn’t need to be a hassle: savings platforms, like Active Savings, allow savers to compare rates and switch between products and banks under one login. At the time of writing, Active Savings clients have access to more than 50 inflation-beating accounts.
Beware eye-catching offers
An increasing number of providers offer an easy access bonus rate, but savers should always read the small print. Certain rates may last for only a limited period or come with restrictions on withdrawals and deposits. Failing to check the details or keep tabs on when a bonus rate expires could mean missing out on better returns over the long term.
Spokesperson Alice Haine, head of personal finance at Hargreaves Lansdown, said:
Britons understand the importance of saving for a rainy day, but many have no idea what rate their bank is paying them – and too few are doing anything about it.
"Not knowing your rate is a bigger problem than it sounds: with the big banks paying just 0.95% on average, well below inflation, savers are missing out while their cash quietly loses value in real terms.
The good news is that putting it right isn’t difficult. Comparing rates and moving to an inflation-beating account could earn you several times more interest. For people interested in making their money work harder without the hassle, using a savings platform to compare and move between different accounts in one place could be worth hundreds of pounds a year.”
Notes to editors
About Active Savings
Active Savings is Hargreaves Lansdown’s cash savings service, making it quick and easy for clients to manage their cash alongside their investments under one login. Clients have access to products from more than 30 banks and building societies through a single online account, saving the hassle of opening a new account with each provider. Savers can choose from easy access, limited access, and fixed-term rates, often with market-leading rates that pay up to four times more interest than with the big banks.
Polling data *
Figures from two surveys conducted for Hargreaves Lansdown:
Survey of 3,000 people by Find Out Now, August 2026.
Survey of 2,000 people by Opinium, June 2026.
Big bank average **
Instant access rates compared across the UK’s four biggest banks – Lloyds, Barclays, NatWest and HSBC – with an average return of 0.95%. HL’s Active Savings best easy-access rate is 3.95%. Correct as of 17/08/2026.
Active Savings worked examples ***
At HL, £20,000 saved with Active Savings and moved once a month into the highest-paying easy-access account would have generated £807 in the 12 months to June, beating inflation by £287. The same £20,000 saved at a fixed rate of the current big bank average of 0.95% would have paid £190 in interest, lagging inflation by £330.
Real-terms comparison uses ONS CPI inflation of 2.6% over the 12 months to June 2026.
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