A BBC expert has given a warning to anyone who has £5,000 sitting in their bank account. Consumer guru Laura Pomfret appeared on BBC Morning Live as the nation is being hit by a new cost of living crisis caused by the Iran war sending fuel and food prices spiralling upwards.

Ms Pomfret told hosts Greg Rutherford and Holly Hamilton that a recent study found that millions are sitting on decent sums of cash in their current accounts, but are earning next to no interest. Ms Pomfret said: “It feels like things are harder than ever.

“But some of us do still have cash. We do still have it in our current account. And there’s been some interesting stats out. So, banking provider Chase, they did a survey and found that one in six people that they questioned admitted to leaving more than £5,000 in their current account.

“And digging a bit deeper, Yorkshire Building Society estimates there’s around £411 billion pounds sitting idle in current accounts. Some people do keep their savings in their current account. And the problem with leaving it in current account is it is probably making little or no interest.”

Host Holly asked: “It’s almost psychological, isn’t it? That idea of just having, you know, you say people have £5,000 sitting in there are kind It makes them feel nice to know that money is there and they can access it. Butwhat’s the right amount then? How much should you be putting in your savings account, and how much should you have in your current account?”

Ms Pomfret said people, even with relatively modest sums, should put them in savings accounts – and the interest paid over the course of the year could be very useful. She said: “If you are one of these people that has whether it be an extra £2-300, an extra £1,000 or more, if you moved that money, let’s say you had £1,000 in your current account and you’re just keeping it there to make you feel better.

“If you moved it to a saver that was paying 4%, you would make £40 across that year. And that could pay for a grocery shop, it could pay for a birthday present, it could pay for a nice meal. It’s free money, but because you’ve not got it in there, you’ve got it in the current account, it’s not making it. And so, starting small, it doesn’t have to be an awful lot, but getting into this mentality that if I don’t need that money right now, if I don’t need it for the immediate buffer, the immediate bills, having it just in a separate account, making money is really good practice. You can start small, and you can build from there.”