More than £320 billion is sitting in adult savings accounts earning interest well below inflation, according to new analysis from savings app Spring.
The firm analysed CACI data, which it said revealed 49.3 million savings accounts with a combined total of £327 billion in funds are earning 1.5% or less in interest. The Consumer Prices Index (CPI) increased by 3.1% in the 12 months to August 2026, meaning the rate is well below the inflation rate.
Average balance and large deposits
Spring said the average balance held in accounts earning 1.5% or less is £6,626. However, that includes accounts with much larger amounts that could attract far higher rates.
According to the firm, £275 billion of the £327 billion is held in accounts with balances of more than £10,000. Meanwhile, 365,000 accounts had balances in excess of £100,000, earning 1.5% or less, holding a combined total of £72.6 billion.
Interest rates and market alternatives
The average interest rate paid on accounts earning less than 1.5% is just 1.03%, while accounts with balances of £10,000 or more pay an average of 1.04%.
Derek Sprawling, head of money at Spring, said: “With £327 billion sitting in savings accounts paying 1.5% or less, too much of the nation’s money is earning far less than it could.
“Much of this is held in accounts with balances above £10,000, with some savers holding significantly more while earning very little interest.
“Many people may think they have to accept a lower rate to move money instantly to their current account, but that is no longer the case.”
Spring flagged its own banking app, which it says “connects seamlessly to customers’ existing current accounts, providing genuine easy access with a competitive rate of 3.82% AER.”
There are a number of easy access savings accounts on the market which allow you to build up returns, whilst having some flexibility when it comes to withdrawals. For example, TemboMoney's Home Saver has a rate of 4.55% (including a 12-month bonus), and Tesco Bank's Internet Saver has an AER of 4.24% (also including a 12-month bonus).
You can find the latest offers and financial products on moneyfactscompare.co.uk.
