Savers are being urged to urgently assess their returns, as approximately £252 billion is still sitting in accounts earning no interest at all, despite the Bank of England base rate currently standing at 3.75%.

While this total has dipped from the peak of £282 billion seen in late 2024, nearly 14% of all household cash remains in non-interest-bearing accounts.

According to the latest Bank of England figures from early 2026, the volume of 'zombie' cash has nearly doubled over the last decade, as many savers fail to move money away from zero-rate current accounts and legacy savings pots.

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 2025 was 3.12%. This is currently comfortably outpacing inflation, which sat at 2.1% in January 2026. This means that, for the first time in several years, even an average savings account is providing a 'real' positive return on cash.

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

As of 3 July 2026, the top easy-access savings rate is 5.00% AER, though this is inclusive of a short-term bonus rate and the leading accounts at this level are e-money institutions rather than FSCS-protected banks. Excluding bonus rates and e-money providers, competitive easy-access accounts from FSCS-protected banks and building societies are paying around 4.50% AER, with some accounts including a 12-month introductory bonus on top of a lower underlying rate.

It is worth checking the full terms before applying: some accounts restrict the number of withdrawals permitted per year to maintain the headline rate, and others require you to hold a linked current account with the same provider. Most easy-access rates are variable and can change at any time without notice.

Fixed rates

As of 3 July 2026, the best one-year fixed-rate savings accounts are paying up to around 4.80% to 4.90% AER, a significant improvement on the position earlier in 2026, when rates had dipped following base rate cuts. Longer-term fixes are paying slightly less (around 4.50% to 4.70% AER for two to five year terms) reflecting market expectations about the longer-term rate environment. As with all fixed accounts, early access is generally not permitted or carries an interest penalty.

Regular savers

The highest savings rates currently available anywhere in the market are on regular savings accounts, with the best deals paying up to 8.00% AER. These accounts typically cap monthly deposits at between £250 and £500 and often require a linked current account with the same provider. The high headline rate applies to a relatively small pot, so the total interest earned is more modest than it may appear from the rate alone.

ISAs

For tax-free savings, the top easy-access cash ISA rate is currently 4.63% AER (inclusive of a 12-month bonus) for new money, with the best rate for ISA transfers sitting at 4.42% AER. For those willing to fix, one-year fixed cash ISAs are paying up to around 4.60% AER, with two-year fixed ISAs reaching up to 4.66% AER. The current ISA allowance remains £20,000 for the 2026/27 tax year; the reduction to £12,000 for under-65s does not take effect until April 2027.

Erin Yurday, 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 current market rates."

Read more:

• NimbleFins Best Savings Accounts Guide

• NimbleFins Best Bank Accounts Guide

• Average Household Savings & Wealth UK

• Interest rate rise warning as up to 1.7m now set to pay tax on their savings – how to avoid

Rates sourced from Moneyfactscompare.co.uk and MoneySavingExpert.com, correct as of 3 July 2026. Rates are variable unless stated as fixed and are subject to change at any time. Always verify current terms directly with providers before applying. FSCS protection applies up to £120,000 per person per authorised institution.