An estimated £31.6bn is languishing in UK adult savings accounts earning 1% interest or less, according to the latest analysis of CACI data from Spring.

These figures have also shown that over three quarters (77%) of those balances are being held in accounts containing £10,000 or more.

Spring, a savings app part of Paragon Banking Group, highlighted that this means most of these low-earning balances are concentrated in larger accounts, leaving substantial sums missing out on meaningful returns.

The group’s analysis also indicated that the rise in the overall balance of accounts earning up to 1% this year has soared by over £27bn, or 578%, between the end of January and the end of July.

Meanwhile, the number of accounts earning up to 1% has surged by 370% to eight million, up from just under two million at the beginning of the year.

Spring noted that the trend intensified between the end of May and end July, with balances in these low-rate accounts increasing by 308% in two months, as the providers with the lower-paying accounts further reduced rates.

Head of money at Spring, Derek Sprawling, said that the scale of money sitting in accounts earning 1% or less is “truly eye-opening”.

“Savers with significant balances are seeing their money eroded by inflation, when it could be working much harder elsewhere,” he added.

“Our analysis shows that, while a small proportion of accounts hold the majority of these low-earning balances, millions of people are missing out on the benefits of switching to a more rewarding savings account without suffering meaningful downside.”

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