More than six million current accounts pay no interest despite holding balances of £10,000 or more, with a combined £227bn in deposits, Spring has revealed.

The savings app’s analysis of CACI data found that more than one million of these accounts hold £50,000 or more.

Among the latest zero interest balances, the average amount held in current accounts with more than £50,000 stands at £111,883, while the average balance in accounts with more than £10,000 is £35,273.

Overall, £322bn is currently sitting in current accounts paying no interest.

Spring said that, as a result of holding these balances in no interest accounts, savers are seeing the value of their money steadily eroded.

Spring’s survey of 2,000 adults suggests many UK savers are still failing to make the most of their money, often due to a mix of habit, uncertainty and confusion.

More than a third (36%) of respondents said they keep their savings in an account provided by their main current account provider, while 21% admitted to keeping their savings in their current account itself.

Just 27% said they placed their savings with a separate provider.

Head of money at Spring, Derek Sprawling, concluded: “Many savers may not realise just how much they are losing by leaving larger balances in a current account that pays no interest. With six million savers holding over £10,000 in current accounts receiving no interest, there is clearly a need for people to review where their money is sitting and whether it could be working harder.

“It is often convenience or habit that keeps money in the wrong place, but when larger balances are involved, the impact can be substantial. Looking for an app with instant transfers and a competitive rate could make a noticeable difference to returns over time.”

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