BBA says current accounts not designed to be used for savings

People should put their money in a savings account to generate a more attractive return instead of keeping it in a current account, the British Bankers' Association (BBA) has urged. The association was responding to research by Moneyfacts, which showed that current account interest rates have dropped considerably with over half of the accounts available to consumers paying out no interest at all. A BBA representative said: "Current accounts are not, and never have been, intended for people's savings although many accounts do attract a small amount of interest. They are exactly what they claim to be, an account from which everyday transactions – such as direct debits and ATM withdrawals – are managed".