Current accounts vs savings: where should your money be?
Most of us wouldn’t dream of asking someone, ‘How much is in your bank account?’ But perhaps if we had more open conversations about our money, we would be more intentional about how and where we keep it.
Ross Ellis-Butcher, Marketing Executive
2 min read
How much money is too much?
A 2024 study revealed that one in every six UK current accounts holds over £5,000, with an average balance exceeding £24,000. While that may seem like a sign of healthy finances, it could mean your money is sitting idle, earning little to no interest.
While, at Kingdom Bank, we argue that ‘earning interest’ should not be the sole deciding factor on where to save your money, Godly and intentional stewarding of our finances certainly should be.
What does a savings account do differently?
1. Higher interest rates
It’s very possible that a current account won’t offer any interest whatsoever on your balance. Even if it does, it may charge a fee for the account, offsetting any gains. Any interest earned on a current account is also taxable, which it wouldn’t be in an ISA.
If you need flexibility, our Instant Access Gospel Saver allows one withdrawal a month and typically offers a higher interest rate than most current accounts, giving you access to your savings whilst it’s being put to work for the gospel.
2. Better security
As payment methods evolve, so do the challenges in keeping money secure. With contactless and online payments becoming the norm, keeping large sums in a current account, often linked to a debit card, may not be ideal.
A Kingdom Bank savings account could offer an alternative. You can only withdraw into a nominated account in your name, adding a layer of separation and security.
3. Improved money management
Most people have more than one financial goal. Trying to save for a holiday, a new car and your child’s education? Managing the various savings pots you have when they’re all in one account can be a hassle. Separate savings accounts help you stay disciplined and focused.
4. More choice
Opting for a savings account typically means you’ll get much more choice in where to save. Whether your priority is the notice period, a fixed rate, or tax-free options, savings accounts offer flexibility.
Purpose-driven banking
Finally, it’s important to consider what your bank is doing with your money. All the money saved with Kingdom Bank is used to support gospel organisations and workers with mortgages to help their ministry grow. And, when you want your money back, you get it back, with interest.
Kingdom Bank does not provide financial advice. Please seek independent financial advice when structuring your finances.
About the author
Ross has been a Marketing Executive at Kingdom Bank since 2024, with experience in high street and start-up banks. He is passionate about facilitating positive and effective communication and engagement between the Bank and its customers.
Ross Ellis-Butcher, Marketing Executive
