Overview
- Analysis of bank data finds £612.4 billion parked in accounts paying 3% or less, which trails the latest 3.3% inflation rate and cuts spending power.
- Large balances are heavily affected, with £538.9 billion held in accounts over £10,000 and £185 billion over £100,000 still earning below 3%.
- Moneyfacts calculates that since 2020 the average easy-access saver lost about 19p per £1 in real terms, even top easy-access lost around 5p, while the best one-year fixes eked out a 1p gain.
- Current market leaders now pay up to 4.7% on fixed-rate bonds and more than 4% on easy access, yet many older accounts at major banks still pay 1% to 2% and in some cases 0.9%.
- Inertia keeps people stuck on poor rates, with 31% staying out of habit and 26% fearing loss of instant access, as experts urge switching, mixing fixed and easy-access pots, and using ISAs to improve returns.