Research from Yorkshire Bank suggests that people in the UK are collectively missing out on as much £1.7 billion in interest every year by leaving their extra cash sitting idle in their current accounts.

They found that nearly two-thirds (65%) of us have money left in our current account at the end of the month, with an average balance of £316.15. Just one in five (20%) make the most of this money by moving it into a higher rate savings account.

Gary Lumby, Yorkshire Bank's head of retail, said: "Many of us find ourselves running short of money but sometimes we can be our own worst enemy by not making the most of what we do have. Too often we fritter away any spare cash we may have at the end of the month, when putting just a little aside can make a big difference when we really need it.

According to Yorkshire Bank calculations, if all those people who leave an average of £316.15 a month in their current account switched to their savings account offering a rate of 4.32% AER, they would benefit from an extra £88.56 in interest over 12 months. Therefore, Britain as a whole could be missing out on up to £1.7 billion in interest each year.