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Savers have been urged to keep in mind an important figure as their funds could be losing value even as their savings grow.
The latest CPI inflation figures show prices have gone up 3.6% for the year to June 2025, so if your savings are not growing at this rate or above, the value of your savings is falling in real terms.
Spring’s Analysis of CACI data by savings app Spring found there are 67.6 million savings accounts earning 3.5% or below, meaning they are losing out in real terms.
Derek Sprawling, managing director of Spring, said: “As the rate of inflation continues to rise, it’s more vital than ever for savers to ensure that their money is working as hard as possible so its value is not eroded.
“Today, £660billion is sat in accounts earning 3.5% of less; if you add in nearly £300billion in current accounts earning nothing, that is a significant amount of lost interest.”
He urged savers to check over their accounts to see if they can get a better rate. At the time of writing, there are many easy access savers available with rates above 3.5%, including several accounts above 4%.
Another option for consumers to look at is the Spring app. Mr Sprawling said: “With so much money languishing in low-paying accounts, Spring offers a compelling alternative to saving with major UK banks or just leaving your money in your current account.
“Spring connects directly to your current account in seconds, working alongside it to deliver significantly better returns through a simple and easy-to-use app.
“Unlike most big bank easy access savings accounts, there are no hidden surprises with Spring — no bonus rates, restrictions or fees.
“You don’t need to move your current account; just enjoy a competitive rate, unlimited withdrawals and easy access to your money whenever you need it.”
Now is a good time to look at changing savings provider as the Bank of England could reduce the base rate again soon.
The base rate is currently 4.25% with the next decision on whether to change the rate to come on August 7.
A reduction in the base rate usually prompts banks to follow suit and reduce their savings rates as well.
