People with savings urged to check accounts as billions being lost against inflation rate
The total balance of adult savings accounts failing to beat inflation has surged by nearly £200 billion since January, reaching at least £660 billion, according to new analysis by Spring, the savings app that connects directly to current accounts.
Spring compared CACI data, which compiles savings data from over 40 leading savings providers, from the end of January to May.
This 36 per cent increase in just four months highlights the growing risk to savers as inflation continues to rise. While the number of accounts earning 3.50 per cent or less has also grown - up nine million to total 67.6m - it's the sheer volume of money sitting in underperforming accounts that poses the greatest concern.
UK Government data issued last week shows that the Consumer Price Index (CPI) inflation rate stood at 3.6 per cent in June, up from 3.4 per cent recorded in May.
Derek Sprawling, Spring Head of Money, said: 'As inflation continues to climb, the real value of people's savings is being steadily eroded. Today, £660 billion is sitting in accounts that fail to keep pace with inflation; this should be a wake-up call for savers.
'It's time to review where your money is held and ensure it's working harder for you. Look for providers offering rates above 3.50 per cent - anything less means your savings are losing value in real terms.'
He continued: '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 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. Utilising leading technology, you can transfer money in seconds and start to benefit from a better rate.'
Spring is currently offering a competitive 4.30 per cent AER with no hidden fees or restrictions, and seamless integration with your current account.
Spring helps savers take control of their money and earn more without switching banks.
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