To think a current account buffer can count as savings

[YourLoyalQuoter]

If you consistently have money left over in your current account each month, does it really matter whether it’s formally in “savings” or not? I understand the benefits of separate savings accounts, but in practice, having a buffer available seems like it serves a similar purpose.

AIBU?

Who cares? Yes, it’s money you have saved for emergencies in your current account. Yes, it’s savings. But who cares?

Is this a universal credit thing?

How much of a buffer?
If you have thousands sat in your current account you'd be better off putting it in a savings account to earn interest
But if the buffer is like £300 I wouldn't really call it savings

You can talk all day about what counts as 'savings' whichever account it's in.

However, if the amount isn't increasing, like it would it you, for example, moved £200 pm to a savings account, you're not really consistently saving out of your monthly budget.

Also, most current accounts don't pay interest, although some do.

Plus if you're the type of person who gets to the end of the month, sees money left in their current account as money available to spend, it might you're not building up a buffer for things you need later on.

Although in the good old days of the Santander 123 account that paid 3% on up to £20k when interest rates were really low, we used ours as a combined current, savings and mortgage overpayment account - we didn't actually spend from that account, it was just used for direct debits, so we kept the balance as high as possible, because it was our best paying account.

Savings is money put aside, so if it is in your current account it isn't saved as t is available to spend. Although, it doesn't matter where it is, it's still part of your total money whether you call it savings or not.

Personally I use savings accounts because I get a much higher interest rate on them, and nothing at all on my current account. I also have several accounts, as there are fixed rate monthly savers that pay 5% but you can only put £250 a month in them. (self employed and save money to pay tax)

If you're saving money up in an account, it's savings by definition. You clearly know it isn't the most savvy way to save, but it's a pot of money nonetheless.

Why are you asking though?

Yes, money saved is savings wherever you keep it. People mostly keep savings in designated savings accounts because of a) earning interest and b) removing the temptation to see money in a current account as money available for spending. Beyond that, it makes no difference.

My banking app allows me to have a separate wallet for savings. The money is still in my current account and readily available but yes, it's still savings.