The lost return could be enough to pay for a seven-night package holiday abroad in 2027

Skipton Building Society has issued an urgent warning to savers across the UK, revealing that millions of people are losing up to £800 a year.

With summer holidays in full swing, the building society is urging people to consider switching their savings into something more competitive.

The lost return could be enough to pay for a seven-night package holiday abroad next summer, prompting savers to check whether their money is working hard enough.

Skipton Building Society has warned that large amounts of cash are being left in current accounts paying no interest when they could be earning a return elsewhere.

With household finances remaining under pressure, the building society is urging people to review their accounts and consider whether they could benefit from a more competitive savings product.

Skipton calculated that someone depositing the full £20,000 annual ISA allowance into a one-year fixed-rate cash ISA paying four per cent AER would earn £800 in tax-free interest over 12 months.

For a solo traveller, that amount could cover a seven-night package holiday to Tenerife at £709, Corfu at £726, Sliema in Malta at £732 or Dalaman in Turkey at £753.

Families could instead put the £800 return towards the overall cost of a holiday abroad in summer 2027, reducing the amount they would need to find from their existing income or savings.

The sheer scale of the missed opportunity is laid bare by data from CACI, analysed by Skipton Building Society.

As of May 2026, some 80million personal current accounts in the UK were earning absolutely zero interest, with a combined balance of £321billion sitting untouched.

Simply transferring those funds into a top-paying savings product could make a noticeable difference to household budgets, the building society said.

At today's leading rates, even a portion of that vast sum moved into a competitive account would generate substantial returns over the course of a year, money that is currently being left on the table by millions of account holders.

Alex Sitaras, Head of Savings at Skipton Building Society, said: "At a time when many are jetting off on their summer holiday, it's worth remembering that making your savings work harder can be just as effective as finding extra money to save.

"Whether it's earning a little bit of extra towards flights or accommodation, using a cash ISA can help ensure you're getting the most out of your savings allowance.

"Yet millions of savers are missing out on returns that could make a difference to their plans by leaving money in little or no interest accounts."

He added that with households keen to stretch their money further, locking in a competitive rate could deliver a meaningful difference over time.