Why 60-somethings are the most lucrative customers for banks

BANKS are cashing in on older customers who leave large sums in current accounts that pay little or no interest.

Customers of around 61 are the most lucrative current account holders for high street banks, says the City watchdog. They hold around £33,000 in their current account and £17,000 in a savings account, Financial Conduct Authority research shows. Most current accounts offered by major banks such as Barclays, Halifax and HSBC are free to use if customers are in credit, but pay no interest.

Banks profit from their cash by using it to fund mortgages and loans, for which they charge far higher rates. They profit from eight in ten customers, says the FCA, which studied the UK’s 73million accounts. The next most lucrative customer is 39 and pays out in high overdraft charges.