Savings warning to all Britons with £10,000 in bank savings accounts

The analysis examined adult savings accounts across the UK, identifying balances that have remained in low-yield products.

Spring said the findings highlight a significant portion of savers not moving money to more competitive rates.

Most of the funds identified are held in larger accounts, according to the report.

The organisation said account holders with significant balances could secure far higher returns by switching.

Spring's research found that the majority of these funds are held by individuals with substantial savings.

The group said this meant savers with larger deposits were losing potential income despite having access to alternative options.

The scale of low-yield savings has risen sharply since the start of the year.

The number of UK savings accounts paying one per cent interest or below increased from under two million in January to eight million by July.

This represents a 370 per cent rise in seven months.

Spring said the shift demonstrated how quickly funds had moved into low-interest products or fallen below previous rate levels.

The total amount of money held in these accounts rose by more than £27billion over the same period.

That equates to a 578 per cent increase in funds earning minimal returns.

The analysis suggests that many savers either opened new low-rate accounts or did not monitor changes in rate levels on existing accounts.

Spring said the data pointed to a widespread failure to seek higher interest rates despite competitive products being available.

The app noted that inflation continued to erode the spending power of savings held at one per cent or below.

Economists have said that, in real terms, savers may be losing purchasing power when returns do not keep pace with price rises.

Spring found that £24.5billion of the low-interest funds sits in accounts with more than £10,000 in savings.

This represents 77 per cent of all money earning these rates.

The research indicates the majority of low-yield balances are concentrated among those with larger deposits.

Spring said this shows savers with substantial funds are not maximising returns.

The findings also suggest that the bulk of low-interest savings is not spread across many small accounts.

Instead, a smaller proportion of higher-value accounts hold most of the affected balances.

Derek Sprawling, Head of Money at Spring, said the figures highlighted a concerning pattern.

"The scale of money sitting in accounts earning one per cent 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 that many people could secure higher returns without sacrificing access to funds.

"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."

Mr Sprawling said Spring aimed to support savers seeking to improve returns.

The period from late May to July saw particularly strong growth in the amount held in minimal-return accounts.

Funds in these accounts almost tripled in two months, representing a 308 per cent rise.

Spring said the surge coincided with some providers making reductions to existing rates.

More accounts subsequently fell below the one per cent threshold.

The group said the adjustments meant billions more pounds began earning lower returns over the summer.

The pattern suggests that many banks and building societies reduced rates at the same time, pushing savers into lower-yield categories.

Spring said the trend highlighted the importance of monitoring account rates regularly.

The organisation added that competitive products remain available to savers willing to move funds.

Financial analysts note that interest rates across the wider market remain higher than in previous years.

Savers are encouraged to consistently review products to ensure returns keep pace with market rates where possible.