There are 6.4million current accounts containing a balance of £10,000 or more earning no interest, new data shows.

Meanwhile, 323,000 accounts have a balance of £100,000 or more in them, according to analysis from Spring Savings.

It means millions of people are keeping their money in accounts earning zero interest. 

The ideal amount of money you should hold in a current account should be around £1,000, according to personal finance experts. 

This should cover any bills and direct debts that are set up to come out of your current account. 

The rest should be kept in an easy access savings account or Isa which can be immediately accessible. 

Andrew Hagger, founder of personal finance website MoneyComms says: 'If you've always got a few thousand sitting in your bank once your bills have been paid, you would be better off by switching some into an easy access savings account.

While George Sweeney, money expert at comparison website Finder says: 'The general rule of thumb is to build up an emergency fund in the region of £1,000, and after that, work on building 3 to 6 months of living expenses.'

Why is it bad to keep too much in a current account? 

Money kept in a current account usually does not earn any interest as only a handful of banks.

This means your money is being eroded in real terms with the level of inflation now at 3.6 per cent. 

Hagger says: 'In most cases, credit balances in current accounts paying no interest and are dead money. 

'Banks are happy for people to do this as it's free money they can lend out and make a nice return at the customer's expense.'

While Sweeney adds: 'Typically, current accounts pay little to no interest. 

'If you’ve got a large cash buffer sitting in one of these accounts, it will actually be losing value the longer it remains idle, due to the eroding rising prices.

What should you do with the money instead?

If you have £10,000 in savings, a current account is one of the worst places you could keep them. 

You should put into an easy-access savings account with a good rate with no strings attached that will allow you to access your money as many times as you like without penalties for accessing your money. 

Sweeney says: 'The smart move is to keep large cash balances in an easy-access cash Isa. 

'You can put in up to £20,000 this financial year and next, before the limit drops for under 65s to £12,000 in April 2027'

With the current best easy access savings and Isa rates around 4 per cent, switching  balance of £10,000 would earn a respectable £400 by this time next year. 

While if you moved £7,000 into a savings account at this rate it would earn £280 and £4,000 would earn £160.

Hagger says: 'If you have an online savings easy access account you can switch funds into your current account instantly in some cases and within 24 hours in most instances.'

'Maybe make it your first New Years resolution for 2026 to make better use of that dead cash in your bank account.'