The amount of money held in savings accounts with a rate of 1 per cent or less rocketed last year, comprehensive data shows.

By the end of 2025, there was nearly £69.9billion sitting in easy access-savings accounts earning paltry interest after many major banks made huge cuts on what they offer savers.

And with more cuts since, it is likely the figure has risen further in the past three months.

At the start of 2025, just £2.9billion of instant-access money was in ultra-low interest accounts, according to analysis of CACI data from savings app Spring – meaning a rise of 2,340 per cent in just 12 months. 

CACI compiles the savings deposits of 40 major providers. It shows 22million accounts now earn 1 per cent or less, compared to 1.6million in January 2025.

A large chunk of this figure is driven by accounts holding more than £10,000 earning low interest. Around £47billion of the £67billion is accounts with balances of £10,000 or more.

The average balance held in accounts earning 1 per cent or less is £3,133. 

It also comes despite many easy-access accounts in the independent This is Money savings tables offering inflation-beating rates of 4 per cent or more – including Isas.

On £3,133, the difference between the best buy 4.25 per cent and 1 per cent over the course of the year is £136 interest versus £31. 

On £10,000, it is £433 against just £100.

The period from June to July 2025 saw the biggest increase in balances, as they tripled from £9billion to £30 billion in just one month, as providers with low paying accounts reduced rates even further.

The number of low-interest accounts also increased sharply between June and July, rising from 3.8million to 7.9million.

Derek Sprawling, head of money at Spring, said: 'These figures lay bare just how much of the nation's savings is being quietly eroded.

'Nearly £70billion sitting in savings accounts paying 1 per cent or less is an extraordinary amount of money to be earning next to nothing, especially when many households are working hard to make their cash stretch further.

'The sharp increase seen during the summer demonstrates how quickly savers can be left behind when their current account providers reduce rates.

'Furthermore, the data does not reflect the cuts made by some of the largest banks in early 2026 following December's bank base rate decrease.'

Base rate was cut to 3.75 per cent in December, and forecasts at the start of the year were for rates to be cut further.

However, since the Iran conflict kicked off in early March, this has been flipped on its head, with markets now forecasting up to four base rate rises this year.