What did Yorkshire Building Society warn about on 31 December?

It highlighted that over 12 million UK current accounts with balances above £5,001 pay 1% or less, with average balances around £23,700. Households could have earned roughly £1,000 more by moving spare cash into higher-yield accounts. The key message is to review balances and shift excess into better-paying savings.

How much should I keep in my current account?

Keep enough for bills, a buffer for weekly spending, and any direct debits. Many people hold one to two months of expenses. Move the rest to a higher-paying savings account that fits your access needs. Set automated sweeps so surplus cash moves on payday without manual effort.

Will switching savings accounts affect my credit score?

Opening savings accounts usually does not impact your credit score because most providers use a soft check. Current account switches using the official service are also credit-neutral. Always read the provider’s application notes. If you apply for a new credit card or loan, separate that timing from your savings moves.

What risks should bank investors watch in 2026?

Focus on deposit migration, funding costs, and the deposit mix between current accounts and higher-rate products. Monitor deposit betas, promotional pricing, and guidance on net interest margins. If competition stays intense, some high-street banks may see margin pressure, while challengers and mutuals could gain share.

Global Market Insights

December 31: YBS Savings Warning – £5k+ in Current Accounts Lose Out

ByHuzaifa Zahoor December 31, 2025December 31, 2025

The yorkshire building society sav warning highlights a costly gap for UK households. Over 12 million current accounts with balances above £5,001 are earning 1% or less, with typical balances near £23,700. That means families missed roughly £1,000 in interest by not moving spare cash to higher-rate savings. For investors, this points to faster deposit migration into better-paying accounts, which can lift funding costs and squeeze bank margins into 2026. We explain the numbers, what it means for UK savings rates, and how to switch savings accounts in minutes.