SAVERS have been warned of a ‘silent threat’ to their cash fund as Brits lose almost £7billion in their sleep.
Brits putting their hard-earned cash into easy-access savings accounts could be at risk of seeing their money devalued, according to Fidelity.
Easy-access accounts and regular savings accounts, allow greater flexibility when it comes to withdrawing your cash, but they tend to offer slightly lower interest rates.
The average interest rate on these types of accounts is around 1.94%, while the UK rate of inflation is currently sat at 3.4%.
Analysis by the firm estimates that assuming 70% of household savings are held in easy-access accounts and 30% in fixed-rate products, savers earned around £45.6bn in interest in 2025, equivalent to an average return of 2.43%.
However, once inflation at 3.4% is factored in, the real value of their savings fell by around £17.6bn over 2025.
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The group said because UK adults spend roughly 38% of their time asleep, it implies that almost £7billion of purchasing power was lost while people slept, equivalent to around £122 per adult over the year.
Marianna Hunt, personal finance specialist at Fidelity International, said: “Inflation is a silent threat to savers with many people seeing the real value of their cash go backwards.
“With inflation rising again at the end of the year and remaining above target, our analysis underlines how even relatively modest inflation can continue to erode savings when returns on cash fail to keep pace.
“When money is invested, it has the potential to keep growing even while you sleep – working in the background while you rest, rather than quietly losing value to inflation.”
Customers looking to get a greater return on their savings could consider holding their cash in a fixed rate savings account.
Usually, you lock your money away for a set period of time and the interest is paid either annually or when the term finishes.
How to find the best savings rates
WITH your current savings rates in mind, don’t waste time looking at individual banking sites to compare rates – it’ll take you an eternity.
Research price comparison websites such as MoneyFactsCompare.co.uk and MoneySupermarket.
These will help you save time and show you the best rates available.
They also let you tailor your searches to an account type that suits you.
As a benchmark, you’ll want to consider any account that currently pays more interest than the current level of inflation – 3.4%.
It’s always wise to have some money stashed inside an easy-access savings account to ensure you have quick access to cash to deal with any emergencies like a boiler repair, for example.
If you’re saving for a long-term goal, then consider locking some of your savings inside a fixed bond, as these usually come with the highest savings rates.