Thousands could be missing out on thousands by keeping money in the wrong bank account (aff)

Thousands of UK customers could be missing out on thousands of pounds every year – simply because of where they keep their money. While most people focus on personal savings accounts, there’s another type of bank offering much higher returns.

For customers who hold significant sums of cash in their accounts, keeping an eye on interest rates is crucial. And research has shown some accounts have rates up to 2.9% lower than they could be - which means account holders may be losing thousands of pounds a year without realising it.

For example, a balance of £75,000 earning a low rate could miss out on around £2,123 a year in interest. For customers with £1 million sitting in an account, the gap could rise to more than £28,000 annually.

Now a new generation of banking tools is trying to change that by rewarding customers for how they use their accounts.

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Allica is a business-focused bank that offers an instant access savings pot paying up to 4.08% AER, allowing customers to earn interest on spare cash without locking their money away.

To put that into perspective, a balance of £200,000 earning up to 4.08% AER could generate roughly £7,660 in interest over a year.

And savings aren’t the only way businesses are seeing extra returns; another feature becoming more common is cashback on everyday spending.

While many accounts offer little or no rewards for card payments, Allica offers to 1.5% cashback on card spend, credited directly each month rather than through points or vouchers.

For business owners or employees who regularly pay for travel, suppliers or operational costs on card, that can add up surprisingly quickly over the course of a year.

Customer service is another area where many customers say things have changed dramatically in recent years, with branch closures and automated phone systems becoming more common, getting help from a real person can sometimes feel difficult.

Allica, however, has returned to a more personal approach by giving customers a dedicated relationship manager – someone whose name and number they actually know.

That person can help businesses understand their options, manage cash flow and plan for growth rather than simply handling transactions.

Allica's accounts can also be linked directly with tools such as Xero, Sage and QuickBooks, helping financial data update automatically.

While traditional applications can sometimes take weeks, Allica's business account allows customers to apply online and be up and running in less than two weeks.

Features such as multiple accounts for payroll, expenses and savings, spending limits for employee cards and mobile wallet compatibility are also on offer

To find out more about Allica's business banking options, click here.