When was the last time you checked in on your savings?
Published: 27 August 2026
Do you keep on top of how much cash is in your current account? Data suggests that at the end of 2025, around £300bn was sitting in UK current accounts.1
Now, some of that money could be there for a good reason. But some of it could be earning interest: interest to help people save for holidays, a new car or a house move. So, if you’ve got spare cash sitting in your account doing nothing, it could be worth taking a closer look.
This short video shows why it pays to give your money a regular check-up.
Why should you give your savings a regular health check?
Taking stock of your cash to see if it’s in the best possible shape can be useful. You may want to consider:
- If you have any spare money sitting in a current account earning no interest.
- If you already have savings, what interest rate are you getting?
- If you’re saving for something special, is it on track, is it in a suitable account for your needs?
- Have you got an emergency fund for unexpected costs?
You’ll need to consider what you need from your money, your life stage, predictable and unpredictable events, as well as any loans and credit card debts. If you need support, you should look to gain independent financial advice.
“Taking a step back to see how your savings are doing is never a bad idea. A quick check could help you see if your money is working as hard as it could for you.”
Catherine Wray, Senior Product and Pricing Manager, Leeds Building Society
How much should you keep in your current account?
Your current account should usually have enough to cover:
- Your bills and Direct Debits, such as mortgage or rent, food, gas, electricity, water, loans, phone and streaming services
- Your everyday spending, from meals out to new clothes
- A small buffer to help with unexpected costs
If there’s money left over after all that, you could consider moving it into a savings account which pays interest. That’s where we come in. Check out our savings range.
Could your spare cash earn more interest?
Once you know how much you need for day-to-day spending, you can begin to think about where any extra money might go. The good news is you have different savings options to consider:
Easy access savings accounts
Need your money in a hurry? If you don’t want to lock it away, an easy access savings account might be right for you.
Fixed rate savings accounts
For more attractive rates that won’t change for a fixed term, you could give a fixed rate account, such as a fixed rate bond, a go. Just remember that withdrawals aren’t allowed during the term of the account.
Top tip: Personal Savings Allowance (PSA). Depending on your income, you could earn up to £1,000 in interest before paying any tax:
- Basic rate taxpayers can earn £1,000 of interest
- Higher rate taxpayers can earn £500 of interest
- Additional rate taxpayers don’t get a PSA
Cash ISAs
A cash ISA is a savings account with one big difference: you don’t pay tax on the interest you earn. But you need to stay within your annual ISA allowance. You can choose from fixed or variable rate cash ISAs.
When might a cash ISA make sense?
If you’re aged 18 or over and are a UK resident, you’ll have an ISA allowance. You can use this allowance by saving in a cash ISA. Cash ISAs can be especially useful if you’re likely to pay tax on your savings interest.
For the 2026-2027 tax year, you can save up to £20,000 in cash ISAs without paying tax on the interest. From 6 April 2027, if you’re under 65, that changes to £12,000.
Do a simple money health check yourself
Follow these steps to give your savings a quick review.
- Look at your current account balance
Keep an eye on what’s coming in and going out, then see if there’s any money you don’t need for everyday spending.
- Consider setting up a savings pot
If you’ve covered your day-to-day costs and bills, could any spare cash move into a savings account?
- Review the interest rates
Interest rates can go up or down, so it’s worth seeing if you can get a better rate. If you have a Personal Savings Allowance, are you within this amount so that the interest is free from tax?
- Consider a cash ISA
Are you using your ISA allowance? If you don’t already have a cash ISA, you could be missing out on tax-free interest.
Making your money work harder
A quick review could help you feel more confident about where your money is sitting. By keeping enough in your current account, reviewing your savings options and making the most of tax allowances, your money could work harder. Happy saving!
View our savings accounts1CACI Current Account & Savings Database – November 2025.
This article is not advice, and you should seek independent financial or legal advice if needed.
The tax treatment depends on the individual circumstances of each customer and may be subject to change.
