More than £502bn held across 62 million adult savings accounts is earning 2.5% interest or less, leaving millions of savers losing money in real terms as returns fail to keep pace with inflation, according to analysis of CACI data by savings app Spring.

With CPI inflation at 2.6%, the study found that 62 million savings accounts are earning below the inflation rate. The average balance in these accounts is £8,099.

Among larger savers, £437.2bn is held in 10.3 million accounts with balances above £10,000, while £155.8bn sits in 735,000 accounts containing more than £100,000, despite all earning 2.5% interest or less.

Accounts with balances above £10,000 but earning below 2.5% pay an average interest rate of just 1.43%.

Derek Sprawling, head of money at Spring, said: "Today’s figures are a timely reminder of a growing challenge for savers. For many people, the real value of their hard-earned savings is being steadily eroded by rising prices.

“A competitive interest rate is important, but it should not be the only consideration. Savers should also think about how easily they can access their money when an unexpected bill or important life moment arises. The right account should offer a strong return while giving people the flexibility and reassurance that their savings are there when they need them.”

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