Virgin Money warns of lost interest on cash stashes

31 May 2007
On the eve of the tenth anniversary of online banking, many Britons' money habits remain surprisingly old-fashioned, Virgin Money has revealed, with £3.5 billion kept in cash in homes countrywide.

One in six people stash money in their home instead of banking it, yet leaving money to stagnate at home allows it to waste over time instead of gathering value, warned bank spokesperson John Franklin.

Banking your money in a savings or current account is not only a vital safety measure, it can also allow you to accrue further funds, Mr Franklin insisted.

The money Britons keep hidden away could gather £174 million in interest in a single year if it was invested in a high-interest bank account instead, he estimated.

Under current inflation predictions, the £3.5 billion being kept in cash in homes today will lose £200 million in value by 2010.

Nor are savings or current accounts the only alternative to saving your money under the mattress or under the floorboards, Mr Franklin emphasised, with Isas a strong alternative investment vehicle for those with spare cash they would like to see grow.

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