Millions of savers are missing out on an average of £619 each year in interest - sparking calls for people to move their money to better paying accounts.
Atom bank has warned 12.6 million of UK adults still hold most of their savings in a current account - despite rates having surged over the past year.
The base rate is currently at 5% after being hiked thirteen times in a row by the Bank of England since December 2021, when it stood at just 0.1%.
Atom estimates someone with £17,365 in savings would accrue £114 in a current account.
But if they were to move their money into one of the best-paying easy-access accounts currently available, they would earn £733 - an extra £619.
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Atom used the 4.21% rate currently being offered by Chip compared to the average high street bank current account rate of 0.97%.
The bank is calling on high street lenders to offer fairer rates on savings products as part of its new “get paid, not played” campaign.
Four in ten people (42%) aged 18-34 hold most of their savings in current accounts, compared to nearly a third (31%) of those aged 35-54 and just a fifth (21%) of those aged 55 and over.
The Treasury and the Financial Conduct Authority have both openly questioned high street banks on their “measly” easy access rates.
Harriett Baldwin MP, Chair of the Treasury Committee, pointed to recent results announcements, which show that the biggest UK banks are continuing to squeeze record profits from their loyal savers.
Separate analysis from Atom shows five of the biggest banking groups posted combined profits of over £5billion in the first quarter of this year - a 43% increase on last year.
Mark Mullen, CEO at Atom Bank, said: “The notion of free banking is a myth. The customer pays for everything.
“Be that flashy TV adverts, high street branches or whizzy current accounts, the cost of everything is passed on.
“This is often in the form of a terrible rate on current accounts and savings products, where UK savers are missing out on billions in interest.
“Moving money to a decent savings provider can mean hundreds of extra pounds a year in your pocket.”
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He continued: “Savers are covered by the FSCS for sums up to £85,000 and should be taking advantage of some of the best savings rates in decades.
“Easy access saver accounts can be opened in minutes, and providers should allow unlimited withdrawals, so it really is that simple.”
Find the right savings account for you
There are lots of different types of savings accounts - here we run through what you need to know.
The below rates are correct at the time of writing but are changing rapidly, so always do your own research first before opening an account.
Easy-access accounts allow you to withdraw your money without giving notice - although some providers do limit how many withdrawals you can make.
This is good for those who may need to dip into their savings - although the rates aren’t as good as fixed accounts.
The top-paying accounts at the time of writing are Yorkshire Building Society and Paragon Bank, each offering 4.25%.
Notice accounts require you to give notice when you want to withdraw your money.
The top-paying notice account right now is from FirstSave, where you can get 5% if you give 90 days' notice on when you want to withdraw your money.
If you give 60 days' notice, the rate is 4.5%.
Fixed-rate accounts don't normally allow you to withdraw your money until the end of the term.
This may not be ideal for households who may need to access their funds.
If you go for a six-month fixed account, the top rate right now is 5.34% from Allica Bank - or for a one-year fix, the rate is 6.02%.
Regular saving accounts make you commit to saving a certain amount each month in return for better rates.
These accounts normally require you to have a current account with the bank already - some also limit how many withdrawals you can make, or they cap how much you can save.
At the time of writing, First Direct was the top payer offering 7% fixed for one year if you save between £25 and £300 each month.
You can only withdraw money after one year unless you close your account, in which case your rate drops to 1.30%.
ISA stands for Individual Savings Account and these types of accounts could be good for those with a lot of money to save.
Each year, you can deposit £20,000 into an ISA and you don't pay tax on the interest.
The best easy-access ISA rate is from Paragon Bank, offering 4.05% - or you can get 5.21% from Charter Savings Bank for a two-year fix.
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