UK savings accounts earning 1.5% or less in interest currently hold a collective £327bn, Spring has revealed.

The savings app’s analysis of CACI data found that 49.3 million savings accounts are earning less than 1.5% in interest, which is far below the rate of inflation.

The average balance held in accounts earning 1.5% or less is £6,626, but the majority of funds, £275bn, are held in accounts with balances of £10,000, leaving large sums of money earning near to nothing.

Furthermore, there are over 365,000 accounts with balances of more than £100,000 earning this amount of interest, holding a combined total of £72.6bn.

The average interest 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%.

Head of money at Spring, Derek Sprawling, stated: “With £327bn 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.”

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