Over a third (35%) of British adults have admitted to not knowing how much interest their current or savings account earns, Spring has found.

The easy-access savings app’s latest research comes as the UK’s inflation rate jumped to 3.5%, which is the highest rate in more than a year.

Spring stated that this increase in inflation could eat away at the potential savings of millions of people across the country.

When asked by Spring how they manage and think about their money, a further 33% of British adults said they wouldn’t move cash into a savings account to help their money grow, while just 24% said they felt completely confident in their ability to save for both the things they need and want.

Alongside the latest increase in inflation, Spring's research comes as the Bank of England hinted at cutting interest rates later this year.

The firm said that cuts are likely to result in a drop in the savings value of money sitting in current accounts.

Managing director of savings at Spring, Derek Sprawling, said: "The time for action is now. Leaving money in a low, or no interest current account and having it face up to the highest inflation rate in more than year is nonsensical. These findings show there are too many people who are not taking advantage of the available tools and resources that can support them to make their money grow seamlessly, with very simple steps.

"As the economy remains volatile, we encourage as many people as possible to take advantage of options such as easy-to-use savings accounts to do the hard work of growing their money for them."

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