To think keeping large amounts (e.g. £20k+) in a current account isn’t the best use of money?

[ThatHeartyGreenExpert]

Having something like £27k sitting in a current account doesn’t seem like the best use of money to me, given it’s usually earning little to no interest. I understand needing easy access to cash but beyond a certain point it feels inefficient compared to putting at least some of it into savings or other options.

AIBU? Surely there can’t be any good reason for people to keep that much in a current account?

I once read a book written by a man who had 100k dollars in his current account. He got mugged by some young people who made him go and withdraw money from a cash point and when they saw how much he had in there, they kidnapped him whilst they tried to work out how to get him to give that money to them.

With respect - you don't need to get too deep into it with what amount of money to invest. I would open up a Target Retirement Fund with Vanguard: Target Retirement Fund | Vanguard UK Investor Stick your £2K in there and add more to it whenever you can. And then forget about it - Vanguard manage it for you and you'll see the benefits of compound interest.

They have a guide here about their managed ISAs: Managed ISA | Vanguard UK Investor but honestly, I would just pick a product and do it, avoid befuddlement.

DH does this. Drives me mad. But he comes from a hand-to-mouth background and given the choice would keep the whole lot in cash under the bed.

I'm not really sure what you're asking. Obviously it isn't the most "efficient" place to keep your money if your aim is to make more money. That's just fact, opinions are irrelevant.

In terms of whether there's "any good reason" that's more personal.

Perhaps they've already maxed out an ISA and premium bonds.

Perhaps the money is there short term before being spent or figuring out what to do with it - e.g. a few weeks gap between selling one house and buying another when it's not worth opening up a new account.

Perhaps they dont know or feel comfortable with other types of savings or investments and just want their money on hand.

Perhaps its an inheritance and they are so stressed with sorting everything out and grieving at the death of their loved one they just cant think about money at the moment so have left it there until they're in a better place.

Any of those could seem like good enough reasons to them, which is all that matters. If its not your money your opinion isn't relevant.

I do this in that I have between 10-15k in the account during the month.

so I want a healthy buffer. Let’s say Thaya £5k to cover costs. So £5k minimum is “wasted”. USA abs premium bonds full. I am losing £125pa in interest on a linked savings account. Maybe £250 max.

So that’s fine with me. I already have 7% regular savers set up etc (and salary sacrifice most wages into pension)