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last mo.

UK Savers Urged to Shift £660bn From Zombie Accounts as Rates Finally Overtake Inflation

An estimated £660bn languishes in accounts yielding under 3.6% despite average savings rates surpassing inflation

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Chances are that your savings have lost 11 per cent in real terms over the past five years
Savings rates have sometimes been beaten by inflation (Photo: Malte Mueller/Getty/fStop)

Overview

  • Average savings rates reached 3.61% in early 2025, marginally outpacing the 3.2% inflation rate.
  • Balances in sub-inflation ‘zombie’ accounts have jumped by nearly £200bn since January, a 36% surge in four months.
  • Analysts estimate at least £660bn remains stuck in accounts offering returns below the current inflation rate.
  • High-yield easy-access accounts now pay over 4%, while some regular savings plans offer up to 7%, pressuring savers to switch.
  • Moneyfacts calls for the Bank of England’s base rate to be held around two percentage points above inflation, a stance challenged by economists citing broader economic needs.