Brits with current accounts have been issued a £1,000 warning, as many don’t realise how much money they are losing out on. While current accounts are the most convenient way to earn and spend money, Brits should shop around for savings accounts that can earn them interest on whatever money they have left over at the end of the month. Experts have conducted research and discovered that a third of Brits aren’t earning as much interest as they could.

Some current accounts offer interest rates, but they are often not as high as some of the savings accounts on the market. Many experts have urged Brits to shop around for the best rates, as leaving their money in the same savings account for years at a time can mean they are losing out on higher returns. However, some Brits don’t even use savings accounts and just keep all of their money in their current accounts. Research from the Building Societies Association (BSA) revealed that over a third (34%) hold most of their savings in a current account, meaning they miss out on around £1,136 income from interest per year.

“Over the last decade, we’ve become used to stagnant interest rates offering little return on our savings,” Iona Bain, financial commentator and founder of Young Money, said.

“But now, we’re seeing successive base rate hikes. It is a double-edged sword, of course, but while households grapple with higher mortgage rates and increased living costs as a result, there is a silver lining in the form of significantly higher savings rates.

“Even if you feel like you can’t set any more aside at the moment, the BSA’s research shows that reviewing where you’re holding your existing savings can make a real difference; savers could potentially pocket over £1,000 just by shopping around for better rates.”

Recent research by savings experts Spring revealed that more than 6 million Brits have £10,000 or more in their current accounts, so they are losing out on huge amounts of potential interest. “A current account should be seen as a tool for everyday spending, not a place to store large sums of money long-term,” said Derek Sprawling, head of money at Spring.

Experts at Money to the Masses point out that current accounts should be used for just three things: paying bills, setting up standing orders and direct debits, and receiving your wages or other forms of income.

Any money that isn’t used for this is best kept in a savings account. For those who like the security of having money for emergencies, there are easy-access accounts where people can instantly move money from their savings account to their current account.

However, if that money isn’t needed in the end, it will earn interest while it sits in a savings account.

“Despite lots of media and government attention on savings rates following the significant increases in the Bank Rate, it’s perhaps surprising that the level of engagement people have with their personal finances remains fairly low,” said Robin Fieth, Chief Executive of the BSA.