SAVING cash is rarely easy – but what if you had forgotten about your hard-earned savings pot?
Brits have £4.5bn sitting in forgotten bank accounts, with each account holding an average £450.
Data from MoneyFacts shows that there are numerous bank accounts that have been closed to new savers for over a decade but still hold cash.
Many of them carry the names of long-gone banks such as Northern Rock or Egg.
While the banks may be fading into history, the money in these accounts is not.
You can still claim it and you should as, unsurprisingly, most of them are paying a pitiful interest rate.
“Like finding a tenner down the side of your sofa, discovering a dormant bank account with money still in it can be a welcome surprise.
“For some, reclaiming that forgotten cash could create a much-needed financial boost,” says Amy Knight, personal finance expert at NerdWallet UK.
It may seem hard to believe that you could forget about your hard-earned savings, but it happens a lot.
There are an estimated 20 million people with forgotten bank accounts, according to research by Which?
“Plenty of people can end up opening multiple accounts,” says Sarah Coles, personal finance expert at Hargreaves Lansdown.
“We might have several savings accounts, possibly because we want to fix our savings for different periods, or to have separate pots for different goals.
“If you have a holiday fund in a specific account, take the holiday, and leave a couple of quid in the account, it’s easy to forget all about it.”
Another common reason for forgotten accounts is savings accounts opened for children by family members that – by the time the child turns 18 and wants the money – have been completely lost.
“It’s then surprisingly easy to lose track over the years if we’re not completely on the ball with filing the paperwork, or updating our address with every single provider when we move.
“It means we can end up trailing multiple accounts in our wake that we’ve forgotten about entirely,” adds Coles.
Your money could then be sat earning virtually no interest – certainly not enough to keep pace with inflation.
We asked MoneyFacts for a list of accounts that have been closed to new customers for over a decade but still have money in them.
The vast majority are paying less than 2% interest – that is lower than inflation.
Don’t be trapped with the belief you haven’t got any forgotten cash, or it won’t be enough to bother hunting down.
That is your money and if you don’t get it will continue to languish in an account earning a pitiful amount of interest.
Grab that cash and move it into a best buy savings account and it could grow into a useful nest egg.
Imagine you had savings with Northern Rock.
Its Branch Saver account closed to new customers in 2008.
That same year the bank hit the headlines when it collapsed and had to be bailed out by the Government.
However, its accounts lived on. Virgin Money bought Northern Rock in 2012 and accounts that had balances continue to tick over but earning just 0.25%.
If you had £1,000 in that account in 2008 it would have gained around £40 in interest over the past 16 years.
Reclaim it now though and you could move it into an account paying 5.2% interest.
You would make £54 interest in just 12 months.
But not everyone should immediately shift their cash.
Some of these accounts still pay a nice interest rate.
We got exclusive access to data from MoneyFacts showing the rates paid on the oldest accounts.
While many pay under 2% there are exceptions.
For example, National Counties Building Society’s Instant Access account closed to new customers in 1996 but still pays 3.4% interest.
Even better Mansfield Building Society’s Postal Tracker closed in 2005 but pays 5.25% interest today.
It’s important to note these aren’t dormant accounts – to be classed as dormant the account must have been unused for between one and 15 years depending on the bank or building society.
Many of these accounts are simply closed to new customers but existing account holders are still using them and enjoying a reasonable rate of interest.
“Our postal tracker is what we call a ‘closed issue’ account,” says Dale Twigger from Mansfield Building Society.
“It is available for transactions with existing customers who hold the account but no longer available for new customers to apply.”
When you are reunited with an account check the interest rate and find out what the bank or building society’s policy is regarding making further deposits or withdrawals.
If you are still getting a good rate, it might be worth sticking with it.
Just make sure they have your current contact details, so you don’t lose the account again.
Being reunited with your forgotten cash is simple.
First look at the table below – recognise the name of any of those accounts?
Get in touch with the bank or building society in question and they will help reunite you with your money.
Not sure if you have any forgotten accounts? Or worried you have lost money but can’t remember where? Don’t worry you can still find it.
Go to mylostaccount.org.uk and fill out a search form.
My Lost Account will then search for accounts in your name – even hunting through the records of banks that have since closed or merged.
You should hear back about all your lost accounts within three months.
The bank or building society that holds the account will contact you.
Once they are happy you are the account holder you’ll be reunited with your cash.
My Lost Account is completely free and works with UK Finance, the Building Societies Association and National Savings and Investments to bring people back together with their savings.
“Be wary of scammers claiming to offer a similar service – if you’re not completely confident the person or company you’re dealing with is legit, stop and seek advice,” says Knight.
If you aren’t online, you’ll need to contact the three agencies separately to get their forms, fill them in and post them back.
UK Finance can be contacted at 020 3934 0329.
National Savings and Investments’ tracing telephone number is 08085 007 007.
The Building Societies Association can be contacted on 020 7520 5900.
| Bank | Account Name | Year Closed | Current Interest Rate |
| National Counties Building Society | Instant Access | 1996 | 3.40% |
| Chelsea Building Society | Access Saver Share | 2004 | 3.55% |
| The Co-operative Bank | Pathfinder | 2005 | 1.83% |
| The Co-operative Bank | Save Direct | 2005 | 1.81% |
| Post Office Money | Instant Saver Issue 1 | 2005 | 4.25% |
| Yorkshire Building Society | e-Saver | 2005 | 5.25% |
| Egg | Web Saver | 2005 | 3.95% |
| Mansfield Building Society | Postal Tracker 1st Issue | 2005 | 5.25% |
| Post Office Money | Instant Saver Issue 2 | 2006 | 4.25% |
| Danske Bank | SaverPlus | 2006 | 1.65% |
| The Co-Operative Bank | Cash Saver | 2007 | 1.82% |
| Lloyds Bank | Online Saver | 2007 | 1.40% |
| Northern Rock | Silver Savings | 2008 | 0.25% |
| Marsden Building Society | Rainbow Instant Access | 2008 | 3.50% |
| Northern Rock | Branch Saver | 2008 | 0.25% |
| Northern Rock | Branch Instant Access | 2008 | 0.10% |
| Lloyds Bank | Standard Saver | 2008 | 1.40% |
| West Brom Building Society | Premier Bonus Tracker Plus | 2008 | 5.10% |
| Coventry Building Society | Family 1st Benefit & Saver | 2008 | 3.10% |
| Leeds Building Society | Caring Saver | 2008 | 2.45% |
IF you have several workplace pensions that you're no longer paying into, you might be better off consolidating them into a single pot.
There are several advantages to this.
The first is that by having your savings all in one place, you’ll only pay one set of fees.
You can also choose which pension provider you want to transfer the different savings to, so you can pick the best one for you.
It also makes it easier to keep track of your money.
You might want to move all your money to whichever of your existing pots has the best fees, or you could move it all to your current employer pension (if you have one).
Alternatively, you may wish to move money to a private pension or use a consolidator service, such as Pension Bee, Aviva, or Wealthify.
Make sure you compare and contrast your options carefully so that you’re picking the best home for your savings.
You’ll need to look at fees but also might want to consider the investment options available.
If any of your pots are over £30,000 you’ll need to get independent financial advice, but even if you have lots of smaller pots you should consider speaking to an independent financial advisor (IFA).
You can use Unbiased or VouchedFor to find a recommended advisor near you.
Also ask whether you’ll be charged a fee to exit your existing provider and to join your new provider, plus whether the age at which you can access your pension is different – for most people this is currently 55, but is set to rise to 57.
You also need to ensure the pension you’re leaving doesn’t come with valuable added perks, or you could lose out.
Stay alert for pension transfer scams as fraudsters often target people transferring their pension with promises of investments that are too good to be true.
Banks and building societies do try to get in touch with account holders if they haven’t accessed their account for a long time.
But if they can’t get hold of you and it has been 15 years since there was any activity on an account it will be classed as dormant.
At this point the money is donated to good causes through the Dormant Assets Scheme.
It is a terrific scheme that uses all that money to help people.
This could be by tackling financial exclusion or helping young people into work.
“However, if you think some of it might be yours don’t panic,” says Coles.
“You can still get in touch with the bank and reclaim it – because it’s all still yours.
“You can reclaim it regardless of how long it has been dormant, and if you were to pass away, your family could claim it after you’ve gone.”
Spring clean your finances and close any old accounts you are no longer using.
Consider bringing together old savings pots into one account paying you a competitive rate of interest.
Keep a record of all your accounts and make sure you keep them up to date with your contact details if you move or change numbers or your email address changes.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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