£276bn of savings earning zero interest - best accounts to switch to today
Savers are being urged to assess their returns, with an eyewatering £267bn earning no interest at all, while the Bank of England base rate is at 4.5%.
More than 15% of all funds held by individuals are not paying any returns - with the latest figure, from December 2024, doubling over the last decade. The Bank of England figures are only slightly down from £282bn the month before in November.
The cost of living crisis has potentially exacerbated the problem with Britons wanting easy access to their money in case they need it.
But the problem is their funds are actually losing value because inflation is eroding away its worth. For example, if you put away £1,000 a year ago, you can buy less with it today than you could last year, because prices have gone up.
Christian Peasgood of Hargreaves Lansdown, said: "In our last survey [in September 2024], 16% said switching accounts would be too much hassle. This rises to 20% of women and 26% of those aged 35-54.
"In many cases, it’s the imagined work that comes with switching that puts them off – 11% say they probably should switch but can’t be bothered. This rises to 17% among those aged 18-34.
"Meanwhile, 10% say they don’t have time – including 12% of men and 18% of younger people.
"Thankfully, shopping around and switching has never been easier."
Latest Bank of England data found the average interest rate being offered for an easy access savings account in December 2024 was 2.82% - almost keeping up with inflation which hit 3% in January 2025.
Easy access rates can often be the lowest rates available, or variable, because banks can't predict how long they'll have the funds for. Savers can get better rates if they lock their money away for a fixed term, or save into a regular saver.
NimbleFins' Best Savings Accounts Guide, which is updated weekly, shows the best rates on the market right now.
Easy access rates
At the time of writing, the top easy access rate was essentially 4.75%, which could be found at Atom Bank (Instant Saver Reward), Chase (Chase Saver With Boosted Rate) and Monument Bank (Limited Access Saver). Be sure to check the terms and conditions, such as withdrawal rules and minimum and maximum investments—e.g. Atom has a £0 minimum investment but you only get that rate if you don't make a withdrawal in a month, while Monument Bank requires £25,000 to open the account.
Be aware that most easy access rates are variable rates meaning they can go up and down without notice.
Revolut Ultra does pay 5% BUT that account costs £45 per month!
Fixed rates
The best fixed rate account on the market is with Birmingham Bank at 4.67% for one year for a minimum of £5,000. Gatehouse at Raisin and Cynergy are offering 4.65% for one year with a minimum deposit of £1,000.
Regular savers
Interest rates of between 6-7.5% are available for the top six regular savings accounts, but these have a maximum deposit of between £150 and £400 a month so its worth reading the catches on our tables.
ISAs
When it comes to ISAs there are some nice deals to be had with Trading 212 offering 5.25% variable for its easy access cash ISA.
Vanquis Bank is offering a fixed rate of 4.51% for one year.
Erin Yurday, CEO and co-founder of NimbleFins, said: "With inflation at 3% for January, savings earning less than 3% are actually losing value when accounts should be working hard for us. And that's before we take into consideration the amount of tax a saver may have to pay on interest.
"There are regular savers accounts offering above the Bank of England base rate as high as 7%, so it's worth shopping around and looking at our Best Savings Accounts guide for the latest rates."
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