Millions of Brits are missing out on an easy way to get a savings boost, new research claims.
Some 51.3 million adult savings accounts are paying rates well below inflation including £338 billion in accounts paying 1.5% interest or less, leaving many households watching the real value of their cash eroded, according to analysis by Spring. The average balance sitting in these low-paying accounts is £6,593, according to the study based on CACI savings data from March 2026. Researchers said the bulk of the money – £284 billion – is held in accounts containing more than £10,000, suggesting many savers are leaving substantial sums earning next to nothing.
The findings also revealed there are more than 372,000 savings accounts holding over £100,000 while paying 1.5% or less in interest. Together, these accounts contain £73.7 billion.
The average rate paid across accounts earning less than 1.5% is just 1.03%, rising only marginally to 1.05% for balances above £10,000.
The warning comes as inflation continues to outstrip many easy-access savings deals, meaning savers in poor-paying accounts are effectively losing spending power over time.
Derek Sprawling, Head of Money at Spring, which offers savings accounts, said: “The fact that £338 billion is sitting in savings accounts earning an average rate of just 1.03% shows just how much money is lying idle in low-paying accounts.
“The vast majority of this money is held in accounts with more than £10,000, with some savers holding far more while earning next to nothing. Savers may think they need to accept these rates in return for instant transfers to their current account, but that’s no longer the case.”
Savings providers have been under growing pressure to pass on higher interest rates to loyal customers after a series of Bank of England base rate rises over recent years.
Many easy-access accounts now offer rates above 4%, creating a widening gulf between the best-buy deals and older legacy accounts.
Spring says its app currently offers 4.30% interest and uses Open Banking technology to connect directly with customers’ current accounts, allowing instant transfers without withdrawal fees or limits. The app is backed by Paragon Bank, which says it already manages £16 billion of customer savings.